Warren Buffett's Warning to Wall Street Just Got Distinctively Louder. Here's What to Do Next in the S&P 500 Correction.
Thanks to the billionaire's astoundingly strong track record, investors look to Warren Buffett as an example in any investing environment. As chairman, he's helped lead Berkshire Hathaway to a compounded annual gain of nearly 20% in 59 years, compared to the compounded increase of about 10% for the S&P 500. So, Buffett has clearly proven himself as a top investor.And this is why investors may listen even more closely to what this investment giant has to say in times of market troubles. Buffett's warning to Wall Street began last year as he reduced holdings of favored stocks Apple and Bank of America, closed out positions in index funds tracking the S&P 500, and built up a record level of cash. All of this signaled caution in a bull market that continued to roar higher.In recent weeks, as investors worried about disappointing economic data and the impact of President Donald Trump's tariffs on the economy and corporate earnings, indexes lost their positive momentum. The Nasdaq and S&P 500 even slipped into correction territory, dropping more than 10% from their most recent peaks. Amid this turmoil, Buffett's warning to Wall Street grew distinctively louder. Let's consider what Buffett had to say and what to do next during the market correction.Continue reading
Thanks to the billionaire's astoundingly strong track record, investors look to Warren Buffett as an example in any investing environment. As chairman, he's helped lead Berkshire Hathaway to a compounded annual gain of nearly 20% in 59 years, compared to the compounded increase of about 10% for the S&P 500. So, Buffett has clearly proven himself as a top investor.
And this is why investors may listen even more closely to what this investment giant has to say in times of market troubles. Buffett's warning to Wall Street began last year as he reduced holdings of favored stocks Apple and Bank of America, closed out positions in index funds tracking the S&P 500, and built up a record level of cash. All of this signaled caution in a bull market that continued to roar higher.
In recent weeks, as investors worried about disappointing economic data and the impact of President Donald Trump's tariffs on the economy and corporate earnings, indexes lost their positive momentum. The Nasdaq and S&P 500 even slipped into correction territory, dropping more than 10% from their most recent peaks. Amid this turmoil, Buffett's warning to Wall Street grew distinctively louder. Let's consider what Buffett had to say and what to do next during the market correction.
