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Warren Buffett's $348 Billion Warning to Wall Street, and Why the Stock Market May Crash
Warren Buffett has a track record that very few investors can match. Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) stock has returned 20% annually since he took control in 1965, nearly doubling the annual gain in the S&P 500 (SNPINDEX: ^GSPC).Buffett created that value for shareholders by making smart capital allocation decisions. Sometimes that meant buying entire businesses, and other times it meant buying stocks. Regardless, his knack for investing is why Berkshire has become a trillion-dollar company.However, Buffett just sent Wall Street a warning. Berkshire held a record $348 billion in cash and equivalents on its balance sheet in the first quarter, even though the S&P 500 dropped into correction territory in March. That suggests Buffett struggled to find reasonably priced stocks despite the drawdown, which implies a sharper decline may be coming.Continue reading
Warren Buffett has a track record that very few investors can match. Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) stock has returned 20% annually since he took control in 1965, nearly doubling the annual gain in the S&P 500 (SNPINDEX: ^GSPC).
Buffett created that value for shareholders by making smart capital allocation decisions. Sometimes that meant buying entire businesses, and other times it meant buying stocks. Regardless, his knack for investing is why Berkshire has become a trillion-dollar company.
However, Buffett just sent Wall Street a warning. Berkshire held a record $348 billion in cash and equivalents on its balance sheet in the first quarter, even though the S&P 500 dropped into correction territory in March. That suggests Buffett struggled to find reasonably priced stocks despite the drawdown, which implies a sharper decline may be coming.
