12/11/2018 – A mixed day with the Dow Jones down 53 points (-0.22%) and the Nasdaq up 11 points (+0.16%)
The stock market remains at an incredibly important juncture. Things are about to accelerate in an unexpected way. If you would like to find out what happens next, based on our timing and mathematical work, in both price and time, please Click Here.
I don’t think Warren Buffett can make it any more clear…..
Once again Warren Buffett has given us a major warning that everything is expensive
Buffett’s holding company, Berkshire Hathaway, just announced a blockbuster quarter, earning nearly $7 billion.
And Buffett’s still sitting on over $100 billion of cash. That means he’s got enough money to buy almost any company he wants, anywhere in the world.
But the only move Buffett made in the last quarter was buying $928 million of Berkshire Hathaway stock.
Some people might say this is a sign that Buffett thinks Berkshire’s stock is incredibly undervalued.
To be fair, nobody knows Berkshire better than Buffett. And shares may present a good value at this level – an all-time high price.
But it’s clear to me that Buffett simply can’t find anything else worth buying.
Remember, Buffett’s got over $100 billion in cash (and he could use debt to fund an even larger acquisition).
So he could buy stock in any publicly traded company. Or he could buy most any private company (the last time he did this was Precision Castparts in 2016 for $32 billion).
We have been facing a similar dilemma as value investors. There is nothing to buy. But it gets worst……
Not only is there nothing to buy, the stock market finds itself at historically high valuation levels. Also known as the everything bubble.
As recently as a few months ago Mr. Buffett have suggested that this is a great time to invest in America. Our view has always been the same. Do not listen to what he says, instead, do as he does.
If you would like to find out what the stock market will do next, in both price and time, based on our timing and mathematical work, please Click Here.
