I haven’t been following this thread too closely but I recall vividly and rather worryingly Grantham said last summer something along the lines:
First there will be a collapse of the low quality names. He used the term confidence termites.
Then the confidence termites will spread to the quality assets.
It looks like the first act has absolutely started. I see Netflix is down in a big way today. Is this the beginning of the second act that takes out the quality companies as well. We will see. But it’s looks to me Grantham’s prediction is shaping up nicely.
I have always been an anxious type and my instinct is to sell a little to have more cash. However, I’m 90% Berkshire and will probably ride this out. I have found over the years that when I start selling I eventually sell everything. And that is usually not a great idea. I’m kind of preparing myself for a 50% drawdown in Berkshire. But am taking solace in the possibility that I will not be spending any of my Berkshire for at least 10 or 20 years. Plus as I read through Adam Meads Complete Financial History of Berkshire Hathaway, it is so clear that Berkshire rarely makes major capital allocation moves and that they are almost always during periods when there are no bids for great assets.