Berkshire Hathaway's growing cash position is sending a clear message about what Warren Buffett thinks of stocks right now.
Warren Buffett has a 70-year track record of producing market-trouncing returns for anyone willing to invest alongside him.
His Buffett Partnership Ltd. produced an annualized return of 31.6% from 1957 through 1968, while the Dow Jones Industrial Average compounded at a rate of 9.1%.
He ultimately folded BPL into Berkshire Hathaway, which he took over in 1965, continuing to produce returns that left the rest of the market in the dust. Through 2023, Buffett's increased the value of Berkshire shares at an average rate of 19.8%, versus 10.2% for the S&P 500 in that period.
So, when Buffett makes an investment decision, the whole world pays attention. Buffett's made several big decisions during the past few quarters regarding Berkshire's investment portfolio. They all add up into a significant warning for stock investors, indicating there's not a lot to like in the stock market right now.
Buffett's amassed a cash and Treasury bill position that approached $300 billion in the third quarter. There are several factors pushing Buffett's cash position to new records. Here's how we got here, and what it means for investors.
Click here for the full article...
No comments:
Post a Comment