Dan Kent

It's not trying to prove it can find the next hot AI company.

It's trying to protect capital allocated patiently and kind of be ready when the odds are actually attractive.

Yeah, and the big question running through the whole episode is pretty simple.

So you have a market obsessed with access, speed, next big thing, and we'll kind of go over whether, you know, if the real edge is actually patience.

So let's get into it.

I guess you'll start off with Berkshire.

Yeah, so I guess on the cash file, I mean, I haven't had a chance to actually look back at what Berkshire did from like 05 till like after the fallout of the financial crisis.

So I would imagine that cash file back in 05 would have looked very bad for what, three years until the bottom fell out of the markets.

I don't know if it outperformed over that period, but I think like overall...

the cash pile is not as big of a drag as it, as it once was.

Obviously you still don't want to hold a ton of cash, you know, if there's opportunities out there, but I mean, you can still get, I mean, what can you get on a five-year treasury right now?

Probably 4%.

Yeah.

Yeah, whereas if you come post-financial crisis leading up to when the pandemic, you were probably getting less than half of that, I want to say, maybe a little bit more than that.

But it's not as big of a drag, but obviously when the markets are ripping away, it doesn't really look –

that good.

But I mean, on the flip side, like you only need one big correction or crash, you know, the market sink 20, 25, 30%.

Not only does that cash position earning 45% look better, but you can now deploy that money.

You've been earning four to 5% on at, you know, better,

And I think, you know, Buffett was kind of a big advocate for, you know, waiting for your pitch and kind of only swinging at the best ones.