Warren Buffett and Greg Abel Just Sent Shockwaves Through Wall Street With This $377 Billion Warning
The time to be fearful when others are greedy has arrived.
In a significant development for Berkshire Hathaway, Warren Buffett and his successor Greg Abel have sent shockwaves through Wall Street with a $377 billion cash warning. As of November 7, the company's cash pile, comprising cash, cash equivalents, and U.S. Treasury bills, had grown to $377.4 billion, making it one of the largest cash reserves in the world.
This massive cash reserve, which Buffett built up through acquisitions and investments, is not viewed favorably by the investing community given that Buffett and Abel prefer putting capital to work rather than holding it as cash. In fact, for the 15th time in the last 16 quarters, Buffett or Abel have been net sellers of stocks, indicating a reluctance to acquire new assets.
Buffett's preference for valuation measures, such as the market-cap-to-GDP ratio, shows that Wall Street is currently pricing in extremely high valuations for U.S. stocks, which are not sustainable in the long run.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
