Warren Buffett's former deputy on crypto, meme stocks, AI, real estate

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Warren Buffett's former deputy slams crypto and meme stocks, heralds AI's 'iPhone moment,' and flags big risks to commercial real estate. Here are the 6 best quotes from her annual letter.

1."As we exit an 'easy money' era of low interest rates, unicorns as common as corn, and the attendant hoopla,put this more bluntly: 'It's not supposed to be easy. Anyone who finds it easy is stupid.'"

2."The last year has seen a reversal of the boom times of costless capital, SPACateers hawking their wares, and a cacophony of promoters fleecing Main Street investors with tokens and meme stocks. We felt out of place in thisand welcome a return to more sensible valuations and less focus on leverage and financial engineering."

3."Too often risk management is either attempting to perfectly forecast the future or assiduously mapping out all the previous lighting strikes and avoiding those places. We prefer the more prudent approach of staying inside during a thunderstorm, even if it means missing out on the latest bandwagon."

4."Mixing high leverage with increasing rates and the accompanying decline in asset prices is a dangerous brew waiting for a catalyst." (Britt Cool and Humphrey singled out

 

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