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Personally I don't understand how investors can jump over each other to
buy junk bonds (with have many equity like characteristics) at a yield of
6% when they could simply buy Berkshire which is almost certain to
compound book value/share at a better rate over time. Just sell 6% of the
shares each year to "get your income"

It's probably a time frame thing.
History has shown that those who buy junk at high spreads do amazingly
well so long as default rates remain low. This time too, so who can say they're wrong?
A buyer of junk at the depths of the 2008-2009 crisis has made as much
money as an equity investor with much smoother ride.
As the spreads narrow, it's time to start edging quietly towards the exit.
So, on a short-to-medium time frame, the rule is quite sensible.
Buy junk when it's underpriced, not when it isn't.
Note that Mr Buffett wrote insurance against a bunch of junk bonds
when the pricing was great. Last I checked we've done very well on this.

As for equities getting disrespected, some are, some aren't.
It's a very interesting exercise to start with the (inescapable) notion
that current US earnings are way ahead of trend in aggregate and
imagine which firms will have a big cyclical fall and which won't.

Offhand I imagine that Berkshire's operating subsidiary earnings are above trend
at the moment simply because it's broad enough to correlate with the wide economy.
The below-trend housing related stuff probably isn't enough to overcome
the above-trend cyclical earnings position of the broad US economy.
That's a comment on the earnings level of the currently owned businesses;
the aggregate corporate earnings will rise on trend as the scope and
number of operating subsidiaries continues to rise.

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