Market Correction Ahead: Warren Buffett's Historical Warning for Investors
Key takeaways
- BRK-B NVDA In a 2001 Fortune magazine interview, former Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB) CEO Warren Buffett talked about the Buffett indicator.
- In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia.
- If the ratio approaches 200% -- as it did in 1999 and a part of 2000 -- you are playing with fire."
BRK-B NVDA In a 2001 Fortune magazine interview, former Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB) CEO Warren Buffett talked about the Buffett indicator. This is the ratio he created years ago that measures total U.S. market capitalization to gross domestic product (GDP).
He noted in that interview that "it is probably the best single measure of where valuations stand at any given moment." Like any market signal, it s not foolproof, but it does give us a glimpse into the Buffett investing style and what he looks for in stocks.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »