Bill Smead, founder of Smead Capital Management, emphasizes a concentrated investment strategy focusing on resilient companies amid market volatility, drawing parallels to past market cycles. He highlights Warren Buffett's recent stock sales and cash accumulation, suggesting a cautious outlook on equity risk premiums and future returns, reminiscent of the late 1990s. Smead and strategist Barry Bannister warn of potential market corrections as corporate profits soar relative to GDP, echoing Buffett's concerns about high valuations and investor psychology.
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