Warren Buffett's Bright Warning to Wall Street: Here's What It Means for Berkshire Hathaway and the Stock Market
Warren Buffett is telling investors something -- not through what he has said, but through his actions with the balance sheet of his investment conglomerate Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). These actions should be taken as a warning sign with the stock market reaching elevated valuation levels in recent months.
As the market and Berkshire Hathaway stock soar, Buffett is pulling back and building a huge cash position. Should you follow his lead? Here's what Buffett's moves could mean for the stock market as well as Berkshire Hathaway itself.
Two actions from Berkshire Hathaway indicate a level of caution for Buffett at the moment: a rising cash pile and the halting of share buybacks. Last quarter, Berkshire Hathaway's level of cash and equivalents reached $344 billion, which is larger than the market capitalizations of all but 27 publicly traded companies in the world.
Source Fool.com
