Both letters have nice macro insights – speacially for those daily focused on bottom up analysis – and a cautious tone towards the investing environment. Even with equity risk premium at or near all time high, investors have a good amount of cash. But one may notice some portfolio managers are being pressured to be fully invested. I don`t want to sound like a perma-bear but we know this story ends.
We may find good business models with nice returns but the missing part of the mosaic is the right price – and we know that without the right price, one underperfoms and may lose capital permanently.
I will leave it up to you reading these two insightful letters.