If the market were way over priced, I wouldn't own any stocks.
Warren is a very good judge of people and he's a very good judge of businesses.
We basically followed the idea of buying comapnies selling below working-capital - at two thirds of working-capital.
Each year we buy stocks and they go up, we sell them and then we try to buy something cheaper.
Earnings can change dramatically. Usually assets change slowly.
Most look at earnings and earnings potential, well I can't get into that game.