Should You Buy Stocks After The Recent Market Sell-Off? Here's What One of Warren Buffett's Favorite Valuation Gauges Says.

Stocks have whipsawed this year, as weak economic data, high valuations, and issues around tariffs have confused investors. After everything that's happened in just a few short months, the broader benchmark S&P 500 finds itself down about 9% on the year as I write this, although it's down much more if you look at highs made in the back half of February. This may leave investors wondering if they should buy the dip after the sell-off.Many stocks haven't been this cheap in quite a while, but the saga with tariffs and rising tensions with China makes the environment anything but certain. If you're looking for answers on whether to invest, you can check one of Warren Buffett's favorite valuation gauges.Buffett has been investing successfully for decades, and his company, Berkshire Hathaway, has widely outperformed the broader market since 1965. While Buffett and his team have never been afraid to adapt, they are also very disciplined and aren't going to pour money into stocks when they think the market is overvalued. They also won't be afraid to buy stocks when there is a market crash. Berkshire made some great investments during the Great Recession and during the early days of the COVID-19 pandemic.Continue reading

Apr 17, 2025 - 08:25

Should You Buy Stocks After The Recent Market Sell-Off? Here's What One of Warren Buffett's Favorite Valuation Gauges Says.

Stocks have whipsawed this year, as weak economic data, high valuations, and issues around tariffs have confused investors. After everything that's happened in just a few short months, the broader benchmark S&P 500 finds itself down about 9% on the year as I write this, although it's down much more if you look at highs made in the back half of February. This may leave investors wondering if they should buy the dip after the sell-off.

Many stocks haven't been this cheap in quite a while, but the saga with tariffs and rising tensions with China makes the environment anything but certain. If you're looking for answers on whether to invest, you can check one of Warren Buffett's favorite valuation gauges.

Buffett has been investing successfully for decades, and his company, Berkshire Hathaway, has widely outperformed the broader market since 1965. While Buffett and his team have never been afraid to adapt, they are also very disciplined and aren't going to pour money into stocks when they think the market is overvalued. They also won't be afraid to buy stocks when there is a market crash. Berkshire made some great investments during the Great Recession and during the early days of the COVID-19 pandemic.