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Showing posts with label general news. Show all posts
Showing posts with label general news. Show all posts

Five Investing Tips From Warren Buffett

What does Warren Buffett's message to stockholders mean for you and your money?
Every year Mr. Buffett, the world's third-richest man and arguably the most successful stock-market investor in history, writes a letter to stockholders in his investment company Berkshire Hathaway. BRKB -0.38% The latest came out this weekend. There are usually some nuggets for all those who haven't invested in Berkshire, and this year's letter was no exception. Here are five:
Warren Buffett, chairman and chief executive officer of Berkshire Hathaway, before being presented the Presidential Medal of Freedom at the White House in February. Bloomberg News
1. Watch out for stock-market valuations.
Mr. Buffett's company is now sitting on a cash hoard of $38 billion. "That's among the highest levels it's ever been," says Stifel Nicolas analyst Meyer Shields. While Mr. Buffett says he is looking for a big acquisition, and has his "elephant gun loaded," the high cash pile also suggests he's having a challenge finding really good deals. If Mr. Buffett is cautious, investors might want to take note: It's another sign that many valuations on the stock market may be looking a little stretched.