From The Motley Fool · Geoffrey Seiler · · 1m
Warren Buffett Buys Stocks Despite Valuation Warnings
Buffett says stocks are too expensive but Berkshire keeps buying.
In brief
Buffett says stocks are too expensive but Berkshire keeps buying. Berkshire Hathaway continues buying stocks despite Warren Buffett's warning that valuations are too high. Originally reported by The Motley Fool.
Buffett's stock warning
Warren Buffett said stock prices were too high in an early-May interview with CNBC.
“Yeah”
S&P 500 rises 7% since warning
The S&P 500 index rose 7% between May 1 and Oct. 15 after Buffett's warning.
Berkshire buys $23.5bn stocks
Berkshire Hathaway bought $23.5 billion in stocks while selling $3.7 billion in Q2.
Berkshire's stock buyback activity
Berkshire bought back $4.5 billion of its own stock in Q2 after a pause since 2024.
Berkshire's AI investments
Berkshire increased its stake in Alphabet to fund AI infrastructure, now holding 13% of its portfolio.
Bending Spoons investment
Berkshire bought $600 million in Bending Spoons at its IPO and added $330 million in a private placement.
Market valuation concerns
The S&P 500 has one of its lowest PEG ratios ever despite AI investment risks.
What to remember
Berkshire Hathaway continues buying stocks despite Warren Buffett's warning that valuations are too high.
