Warren Buffett's $347 Billion Warning to Wall Street Is Ringing Out Loud and Clear. History Says This Happens Next.
The bull market roared on last year, and investors favored high growth stocks in particular -- with the idea that these sorts of players would excel in a potentially lower interest rate environment. And many of these investor favorites are involved in artificial intelligence (AI), a booming field that could drive growth well into the future.But, amid all of this optimism, Warren Buffett began to construct a significant warning to Wall Street. The billionaire investor didn't join the crowd and buy stocks hand over fist. He selectively made some purchases -- for example, adding Constellation Brands to the Berkshire Hathaway portfolio in the fourth quarter. But overall, he was a net seller of stocks, even reducing positions in top holdings Apple and Bank of America last year. And at the same time, Buffett built up a record level of cash -- and that level has marched higher into the new year, totaling more than $347 billion as of the end of the first quarter.In that period, Buffett was a net seller of stocks for the 10th consecutive quarter, extending the billion-dollar warning into this year. Now let's take a look at history to see what stocks may do next.Continue reading
The bull market roared on last year, and investors favored high growth stocks in particular -- with the idea that these sorts of players would excel in a potentially lower interest rate environment. And many of these investor favorites are involved in artificial intelligence (AI), a booming field that could drive growth well into the future.
But, amid all of this optimism, Warren Buffett began to construct a significant warning to Wall Street. The billionaire investor didn't join the crowd and buy stocks hand over fist. He selectively made some purchases -- for example, adding Constellation Brands to the Berkshire Hathaway portfolio in the fourth quarter. But overall, he was a net seller of stocks, even reducing positions in top holdings Apple and Bank of America last year. And at the same time, Buffett built up a record level of cash -- and that level has marched higher into the new year, totaling more than $347 billion as of the end of the first quarter.
In that period, Buffett was a net seller of stocks for the 10th consecutive quarter, extending the billion-dollar warning into this year. Now let's take a look at history to see what stocks may do next.
