Risk return is often difficult to quantify from layman's perspective. Due to the uncertainty that surround investment, equity valuation is often irrational and may not also reflect fair value. E.g. GDP is anticipated to experience -6% globally and yet recent share prices has reached historical level of valuation. There is common notion that investors often seeks pure return without consideration for risk almost always result in negative investment experience.

Value investors like Warren Buffett has resisted investing his USD 140 billion war chest and instead has choose to keep liquid asset and under performing the equity market. Extrapolate these developments. Hint: Asset pricing theory & capital asset pricing model & introduction to security valuation in 1000 words

Can you provide more details about the explanation?