Buffett Urges 10-Year Stock Picks as His Valuation Gauge Hits 238%
Updated
Updated · The Globe and Mail · Aug 20
Buffett Urges 10-Year Stock Picks as His Valuation Gauge Hits 238%
3 articles · Updated · The Globe and Mail · Aug 20
Summary
238% — the Buffett indicator has climbed to a record high, and Buffett is still telling investors to focus on stocks they would be willing to own for 10 years.
That advice comes as the S&P 500 has surged more than 102% since the start of 2023 and the Shiller CAPE sits near dot-com-era extremes, even with uncertainty around the Iran war and the AI trade.
Buffett has warned investors are in a stronger "gambling mood" than ever, but he is not arguing for a wholesale move to cash despite Berkshire building nearly a $400 billion cash pile before putting some money to work in the second quarter.
His playbook remains to buy wonderful companies at fair prices rather than chase quick gains — a framework reflected in Berkshire holdings such as Coca-Cola and its newer Alphabet stake.