Warren Buffett's $348 Billion Warning to Wall Street, and Why the Stock Market May Crash
Berkshire Hathaway reported a record $348 billion cash position in the first quarter, which suggests Warren Buffett thought most stocks were too expensive. The S&P 500 currently has a cyclically adjusted price-to-earnings (CAPE) ratio above 34, a valuation that has historically preceded stock market crashes. The S&P 500 has suffered several crashes during the last three decades, but the index still returned a total of 10.4% annually during that period.