As mentioned on an earlier comment chances are that Berkshire has a little more to go, to more or less the 40000 level where â€œthe fourth wave of previous degreeâ€ resides. The companies earnings dropped by a perfect Fibo 62% in the last quarter. An unforced error in tennis lingo essentially means an error that cannot be attributed to any other factor than poor judgment and execution by the player. Hats of to Buffett for such an introspective mea culpa.
This all raises the question if we are not , collectively, making a type 2 error by not rejecting a number of economic hypothesis that appear to be on very shaky foundations (and always have) such as the â€œefficient market theoryâ€ , diversification and other silly notions like â€œdollar-cost averagingâ€ which is simple a tautology if ever there was one. Soon some of these will go the way of the dodo bird.