After Warren Buffett's New $348 Billion Warning to Wall Street, Is He Worried About the Recent Stock Market Turmoil? The Answer May Surprise You.
The Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 index (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) all soared last year -- but Warren Buffett didn't jump on the bandwagon and aggressively buy stocks. Instead, the billionaire investor was a net seller and built up a record stockpile of cash at Berkshire Hathaway. Buffett is known for going against the crowd and avoiding trends, so it's no surprise that he didn't get in on the action, instead focusing on the fact that stocks were getting more and more expensive.As a value investor, Buffett aims to buy quality companies when they're undervalued, so he won't jump into a stock at just any price. Clearly, in an expensive market environment, Buffett chooses to buy selectively.This year, though, amid concern about the impact of President Donald Trump's import tariffs on the economy and earnings, stocks have dropped from last year's highs -- and some have reached bargain valuations. The Nasdaq crashed last month, and the S&P 500 even temporarily entered a bear market. Since, the indexes have recouped some of their losses, but the market environment remains uncertain.Continue reading
The Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 index (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) all soared last year -- but Warren Buffett didn't jump on the bandwagon and aggressively buy stocks. Instead, the billionaire investor was a net seller and built up a record stockpile of cash at Berkshire Hathaway. Buffett is known for going against the crowd and avoiding trends, so it's no surprise that he didn't get in on the action, instead focusing on the fact that stocks were getting more and more expensive.
As a value investor, Buffett aims to buy quality companies when they're undervalued, so he won't jump into a stock at just any price. Clearly, in an expensive market environment, Buffett chooses to buy selectively.
This year, though, amid concern about the impact of President Donald Trump's import tariffs on the economy and earnings, stocks have dropped from last year's highs -- and some have reached bargain valuations. The Nasdaq crashed last month, and the S&P 500 even temporarily entered a bear market. Since, the indexes have recouped some of their losses, but the market environment remains uncertain.
