Warren Buffett Buys a Dividend Stock Up 4,400% in 15 Years, but Sends Wall Street a $348 Billion Warning
In 1965, Warren Buffett took control of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). Its stock price has since increased at 20% annually, while the S&P 500 (SNPINDEX: ^GSPC) has returned about 10% annually. That outperformance was due in large part to Buffett's brilliant decision-making with respect to stock purchases, acquisitions, and share buybacks.Consequently, Buffett has earned a reputation as one of the greatest investors in American history. Yet, he has struggled to find buying opportunities in recent years. Berkshire reported a record $348 billion in cash and U.S. Treasury bills on its balance sheet in the first quarter.That is surprising because the S&P 500 fell into correction territory in March, but Berkshire kept building cash. The most obvious explanation is Buffett considered most stocks too expensive despite the drawdown. In that sense, he sent Wall Street a $348 billion warning: Stocks could fall further as tariffs and economic uncertainty weigh on the market.Continue reading
In 1965, Warren Buffett took control of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). Its stock price has since increased at 20% annually, while the S&P 500 (SNPINDEX: ^GSPC) has returned about 10% annually. That outperformance was due in large part to Buffett's brilliant decision-making with respect to stock purchases, acquisitions, and share buybacks.
Consequently, Buffett has earned a reputation as one of the greatest investors in American history. Yet, he has struggled to find buying opportunities in recent years. Berkshire reported a record $348 billion in cash and U.S. Treasury bills on its balance sheet in the first quarter.
That is surprising because the S&P 500 fell into correction territory in March, but Berkshire kept building cash. The most obvious explanation is Buffett considered most stocks too expensive despite the drawdown. In that sense, he sent Wall Street a $348 billion warning: Stocks could fall further as tariffs and economic uncertainty weigh on the market.
