I’ve been dying to ask this question of Mr. Buffett for the past few months. After reading his 50th annual letter to Berkshire Hathaway shareholders over the weekend I submitted it to Carol Loomis in hopes she would ask it at the upcoming shareholders meeting:
In November 1999 in Fortune magazine you wrote that you believed the coming decade couldn’t possibly witness returns in the stock market similar to those of the prior decade. That forecast proved very prescient as it preceded what is now called the “lost decade.” Considering the fact that stocks are just as highly valued today as they were then, in terms of your market cap-to-GNP valuation yardstick, do you feel the same about the coming decade for the stock market as you did then? If not, why?