Warren Buffett’s $173 Billion Warning to Wall Street Has Played Out Perfectly — and the Time to Be Greedy Is Rapidly Approaching
From Yahoo Finance: 2025-04-11 03:51:00
Warren Buffett’s Berkshire Hathaway has seen a cumulative return of 5,962,825% in Class A shares since the mid-1960s. With a $245 billion investment portfolio and a record $334.2 billion in cash, Buffett’s recent actions indicate caution in the pricey stock market.
Buffett has been a net seller of equities for nine consecutive quarters, selling nearly $173 billion more than purchased. The market indicators have reached all-time highs, pointing towards a potential stock market correction, prompting Buffett to put Berkshire’s capital to work during recent market downturns.
Buffett has been buying shares of Occidental Petroleum and Domino’s Pizza amidst market volatility. Occidental’s revenue may be impacted by low oil prices, but its forward P/E ratio is attractive. Domino’s, though facing inflation and tariff concerns, also presents a discounted forward P/E ratio, making it an opportunity for long-term investors.
As the broader market remains expensive, Buffett’s value-focused approach seeks out price dislocations. Recent market turmoil may present buying opportunities for Berkshire Hathaway, allowing Buffett to utilize the company’s substantial cash reserves. The time for Buffett to be greedy while others are fearful could be approaching.