It's hard to say though, because the market in which he made his initial chunk of capital is not the same market today, and it's impossible for me to parse out the self-reinforcing effect of "price goes up because Buffett has taken a large stake" versus the sort of fundamentals I'm referring to.

edit : Having said that, I do believe there is a class of people who are able to make money off of the stock market in a way totally unrelated to the reality of the underlying instruments - profiting on churn, market-making, small percentages on massive positions, etc. But I don't think that means the underlying instruments are actually worthless/not tied to real value.

at one point the free money being thrown around then spent on saas, cloud and marketing with fb / google will be pulled back. and then we will see who's naked. it might not be today, it might not be tomorrow, but it will happen.

hence buying a piece of a sound business like buffet does, will win at the end of the day. it's not glamorous but it will win.

The method of Buffet/BH obviously works, but it also seems like it requires a lol it knowledge and skill and patience, otherwise it would be much more popular. Rolling a new mark (or the same marks with a game with a new name) is much easier and reliable for those with less skill.