Warren Buffett Warned About Overvalued Stocks, Yet Berkshire Hathaway Continues Buying
In an early-May interview with CNBC, Warren Buffett expressed concerns about overvaluation in the stock market and warned that many prices would look 'very silly.' Despite this cautionary stance, Berkshire Hathaway has been actively purchasing stocks since then. Between May and October, the S&P 500 rose by approximately 7%, while Berkshire became a net buyer of equities for the first time in over three years. In Q2 alone, Berkshire acquired $23.5 billion worth of stock compared to only $3.7 billion sold. The company also repurchased $4.5 billion of its own shares during this period — marking a significant shift from previous quarters where it had been reducing holdings like Apple and Bank of America. Berkshire's recent investments include Alphabet, now the third-largest holding in Berkshire’s portfolio at nearly 13%, as well as Bending Spoons, an Italian digital technology company. These moves suggest that despite Buffett's public concerns about valuations, he is still finding opportunities worth pursuing.
Topics: Berkshire Hathaway S&P 500 stock buying activity Warren Buffett