Buffett Expects a COLLAPSE

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21. That was an interesting dynamic (referring to his successor)

I couldn't tell if it was just some gentle joking among friends or if there really was some tension. I doubt that we'll see them change too much. They have made only one significant acquisition and that was $8.5 billion for Taylor Morrison Home Corporation. That is a very conservative move and 100% in line with their past actions. Home building is not high-tech. It is a very down-to-earth business. There are housing downturns from time to time, but our housing stock is historically low. Housing is likely to remain in demand because the material shortages will keep building prices high. This fits the Buffet model perfectly. They must think that they can bring resources to the table that will make Taylor Morrison more profitable.

I believe the company planned for the succession after Buffet and Munger in a way that would not raise any anxieties from long-term BRK investors (which includes loads of high net worth professionals (as opposed to institutions). Maybe in a couple of years they will go wild, but I expect they will ease their way forward. There is nothing wrong with parking cash for a while.