From Investing.com: 2024-05-17 05:29:00

Warren Buffett’s annual letter is eagerly anticipated by investors each year to gain insights on the markets, the economy, and his investment strategy. This year, Buffett revealed a cash hoard of over $189 billion, highlighting the challenge of finding reasonably priced acquisitions due to inflated valuations. He warned of market dislocations and opportunities that may arise from unpredictable events. As economic growth slows and stock prices detach from fundamentals, Buffett’s high cash levels indicate readiness to take advantage of potential market reversions to realign valuations with profitability. The correlation between economic activity and equity prices suggests an eventual market correction, reinforcing the importance of not risking permanent loss of capital.



Read more at Investing.com: Is Buffett’s Cash Hoard a Market Warning?