I can virtually guarantee at today's value levels, no matter what, over multiple years they will rise. The world's greatest companies are trading at below- average multiples when they're wildly above-average companies.

The hedge fund 'bubble,' while not popping, is no longer inflating.

Investors see nothing but sunny skies as far as the eye can see and therefore do not care one iota about risk. They are pursuing returns regardless of risk, and therefore the most speculative companies and investment classes are doing very well.

We saw Wendy's was languishing at $40, but when we saw Pershing Square's proposal, it was clear that the shares were worth $65.

The key swing vote is the passive investors who decide whether to piggyback on what the activists are doing. For every dollar of activist money involved in a campaign, there is usually at least $10 of non-activist money involved.

Doing what's right is no guarantee against misfortune.