Story thread · 2 reports / 2 sources

Warren Buffett sounds alarm as stock market warning returns for only second time in 155 years

economictimes.indiatimes.com · 2hShare

The stock market is flashing a valuation warning that has appeared only rarely in its 155-year history. The S&P 500's cyclically adjusted price-to-earnings (CAPE) ratio, which measures prices against 10 years of inflation-adjusted earnings, has climbed to about 41. Its long-term average over 155 years is 17.8, while the only comparable extreme was the roughly 44 reading reached at the height of the dot-com bubble in 2000, according to a report by Yahoo Finance.That backdrop comes as Warren Buffett, one of the most closely watched investors in the world, has issued a blunt message about the current market mood. Between 1965 and 2025, Berkshire Hathaway, the company he once led, delivered an annual compound return of about 19.7%, compared with 10.5% for the S&P 500 including dividends.In a recent conversation with CNBC's Becky Quick, Buffett said, "It's tough to find values when everybody is preferring gambling." The Oracle of Omaha has made a similar point in recent months, describing t

First report: Warren Buffett Just Issued a Blunt Message as This Stock Market Warning Rings for the Second Time in 155 Years — finance.yahoo.com, 1d