ilmscore | Ep. 3 | Warren and Charlie's 25 Years at Berkshire | Warren's dismissal of Efficient Market Theory

Ep. 3 | Warren and Charlie's 25 Years at Berkshire | Warren's dismissal of Efficient Market Theory

Published: 2024-06-05
Status: Analyzed

Predictions from this Video

Total: 3
Correct: 3
Incorrect: 0
Pending: 0
Prediction
Topic
Status
Warren Buffett predicted in 1987 that many junk bonds would collapse to zero value, which occurred by 1990.
"Warren raised the alarm in 1987 and a lot of bonds actually uh went down to zero value in 1990"
Junk Bonds Market
Correct
Warren Buffett predicted in 1987 that many newly issued junk bonds (those that were originally junk, not downgraded from investment grade) would ultimately fail, which was validated by a significant number of these bonds losing all value by 1990.
"Warren raised the alarm in 1987 and a lot of bonds actually uh went down to zero value in 1990."
Junk Bonds Market
Correct
Warren Buffett predicted in 1990 that the banking sector's excessive leverage (up to 20x equity) was creating significant stress, a fear that was realized with the financial crisis in 2008.
"surprisingly 1990 Warren expressed another fear which came true in 2008... a lot of stress is is being built up in the banking sector they are taking excessive leverage to the tune of 20x their Equity."
Banking Sector Stability
Correct