Warren Buffett Sends a Dire $134 Billion Warning to Wall Street. History Says the Stock Market Will Do This Next.
In 1965, Warren Buffett took control of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). The stock has since returned 19.9% annually, while the S&P 500 (SNPINDEX: ^GSPC) has compounded at 10.4% annually. That outperformance is due in large part to shrewd investments made by Buffett, which makes his recent capital allocation decisions a dire warning to Wall Street:Importantly, in his most recent shareholder letter, Buffett wrote, "Berkshire will never prefer ownership of cash-equivalent assets over the ownership of good businesses." That implies Buffett struggled to find good stocks at reasonable prices last year, which itself is a clear warning to Wall Street.Here's what investors should know.Continue reading
In 1965, Warren Buffett took control of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). The stock has since returned 19.9% annually, while the S&P 500 (SNPINDEX: ^GSPC) has compounded at 10.4% annually. That outperformance is due in large part to shrewd investments made by Buffett, which makes his recent capital allocation decisions a dire warning to Wall Street:
Importantly, in his most recent shareholder letter, Buffett wrote, "Berkshire will never prefer ownership of cash-equivalent assets over the ownership of good businesses." That implies Buffett struggled to find good stocks at reasonable prices last year, which itself is a clear warning to Wall Street.
Here's what investors should know.
