From Nasdaq: 2024-11-08 04:00:00

Warren Buffett’s impressive track record at Berkshire Hathaway has outperformed the S&P 500, with an average annual compound rate of 19.8% through 2023, compared to the market’s 10.2%. Buffett’s recent stock sales, including Apple and Bank of America, have boosted Berkshire’s cash reserves to a record $325 billion.

Buffett’s caution in the current market is evident through his significant stock sales and lack of share repurchases for four months. With valuations high and the S&P 500’s forward P/E ratio above its long-term average, Buffett sees limited opportunities. Individual investors may find better prospects in smaller-cap stocks.

Despite Berkshire Hathaway’s large cash pile and limited options for significant investments, Buffett remains cautious about large-cap stocks. The Motley Fool Stock Advisor team has identified 10 promising stocks for investors, excluding Berkshire Hathaway. Their picks have historically outperformed the S&P 500, offering potential for substantial returns.



Read more at Nasdaq: Warren Buffett Just Sent a $325 Billion Warning to Stock Investors