Friends, let’s look at this clearly and without unnecessary noise. Markets rise and fall, sometimes dramatically, but good businesses and disciplined investors endure.The S&P 500 recently closed around 6,506 points (down about 1.5% in the session), and the pressure is still building. Geopolitical tensions in the Middle East, with reports of potential U.S. ground operations against Iran in the coming weeks, are pushing oil prices higher and uncertainty even higher. That’s real, measurable, and it weighs on valuations across many
sectors.Gold and silver had powerful rallies, fueled by inflation fears and uncertainty, but corrections are already visible: gold around $4,500/oz, silver around $68 to $70/oz. I consider it plausible that gold could drop to $3,500 and silver to $50 if risk-off mode fully kicks in, liquidations accelerate, and real yields rise, much like the post-parabolic crashes of 1980 and 2011. Bitcoin, currently near $70,500, could fall to $35,000; in panic phases it often behaves like high-beta tech rather than pure digital gold.Stocks are under heavy pressure, especially in richly valued sectors. Private equity, the real estate market, banks, and private credit are showing serious structural cracks. Commercial real estate is struggling with CMBS delinquency rates around 7%, the office sector hitting record highs above 12%, worse than during the 2008 financial crisis. A wall of roughly $1 trillion in maturing loans in 2026 threatens refinancing failures, forced sales, and value destruction. Private credit, a multi-trillion-dollar market, is seeing rising defaults (trailing rates up to 5 to 6%, with warnings of potential doubling in the coming years due to economic stress). Banks carry significant exposure to non-bank lenders and CRE; regional institutions are already feeling it in their balance sheets.This is not a passing squall. Many of these issues are deeply rooted: higher interest rates since 2022, structural shifts from hybrid work in office space, and a credit cycle that could drag on for months or even years. No quick V-shaped rebound, more likely a prolonged U or even an L-shape, leaving real scars on balance sheets and confidence.Michael Burry, the man who saw the subprime collapse coming, has been warning about exactly this kind of setup for months. In his recent Substack posts (as of early 2026), he describes the market as a “coiled spring”, stretched by historically extreme valuations, passive index flows, massive buybacks, and unsustainable AI hype. He has positioned heavily with puts on names like Palantir and Nvidia, arguing that when the unwind begins, it could be violent and prolonged, potentially a double-digit decline (or worse) in the S&P 500, lasting longer than most expect, because the structural supports (index concentration, forced buying) could break.Still: America has survived worse. Wars, depressions, 21% inflation, dozens of recessions, and every time productive companies emerged stronger. The long-term direction is upward because people keep inventing, producing, and meeting needs.Short and mediumterm? Cash is King. Not out of fear, but out of prudent preparation. Cash is oxygen: cheap to hold and vital when opportunities appear. And right now, the person who best embodies that philosophy in real time is Ryan Cohen at GameStop.I firmly believe Ryan Cohen will become the Warren Buffett of this generation. He has built a fortress of cash, avoided debt, maintained discipline, and waited precisely for this moment. While the market panics, while valuations compress, while assets become cheap, he stands ready to strike. GameStop is no longer just a meme stock; it is a cashrich vehicle led by a man who thinks in decades, not quarters. The last few years of preparation, building cash reserves, avoiding dilution, staying patient, were all about being ready for exactly this phase so he can emerge as the hero when others are suffering.That’s exactly how I approach it
$GME 🏴☠️
$SPY
GAMESHIRE HATHAWAY
@ryancohen is the
New Warren Buffett !
I regard Warren Buffett as a central role model in value investing. His takeover of Berkshire Hathaway in the 1960s, a declining textile company at the time, and its gradual transformation into a diversified holding company exemplify how cash flows from an undervalued asset can fund investments in high-quality holdings. The process spanned decades, emphasizing long-term reinvestment of profits over dividend payouts, ultimately turning Berkshire into one of the world's most successful conglomerates. In GameStop and Ryan Cohen, I see clear parallels to this approach, which underpins my long-term positive outlook on the company. GameStop was a traditional retailer in decline due to digitalization and falling sales in physical video games. Since Cohen's entry as a major shareholder in 2021, followed by his roles as Chairman and CEO from 2023, he has initiated a systematic restructuring: significant cost reductions, debt elimination, store network shrinkage (including sales of international operations), and building a substantial liquidity reserve, currently around $8.8 billion in cash and equivalents as of Q3 2025, supplemented by Bitcoin holdings of 4,710 BTC.Cohen has explicitly cited Buffett as an inspiration and pursued a strategy to stabilize the core retail business (e.g., through a pivot to higher-margin collectibles and trading cards, which now form a meaningful revenue share) while freeing up cash reserves for broader investments. This enables a gradual shift toward a holding structure, where the retail arm contracts and the emphasis moves to capital allocation in undervalued assets or acquisitions, mirroring Berkshire's use of insurance float.Michael Burry, who held early GameStop positions and recently reflected on his pre-2021 exit, has acknowledged execution risks in Cohen's early vision but now views the company under his leadership as a "melting ice cube" with genuine long-term optionality beyond mere meme-driven volatility. My expectation is that Cohen will execute initial major acquisitions or stakes in the coming years, potentially in technology, e-commerce, or cash-flow-strong sectors, to evolve GameStop from a pure retailer into a diversified investment vehicle. The Bitcoin strategy adds volatility but serves as an inflation hedge and signals modern capital preservation. Long-term, I see potential for substantial value creation provided allocation discipline is maintained. The transformation, already underway for several years, could, analogous to Berkshire, become a multi-decade project. I remain invested and closely monitor upcoming capital deployments with high anticipation.
$GME