Warren Buffett is prepping for a staggering 55 trillion dollar storm that has been brewing in the stock market for the last 15 years. Buffett’s favorite stock market indicator is flashing alarm bells, warning that a 40% decline in the stock market could happen any day now. For background, Buffet is by far the most closely followed investor in the entire world. Every move he makes is scrutinized to the very smallest detail. However, it’s not what Buffett IS doing now that has people worried. It’s actually the opposite. As weird as it may sound, it’s what Buffett ISN’T doing that has people incredibly nervous. Make sure to stick around to the end of this video to find out how you can protect yourself from what’s ahead. Here’s what Buffett had to say at the recent Berkshire Hathaway annual shareholder’s meeting when asked why he had been selling stocks and piling up cash.
Warren Buffett is universally regarded as the greatest investor of all time. However, he has been eerily quiet as of late when it comes to buying stocks. In fact, Buffett has even been selling billions of dollars worth of Apple stock, a company just a couple years ago was considered one of his quote “forever” holdings. As a result, Buffett’s cash pile at Berkshire Hathaway has hit a staggering 189 billion dollars. Leaving many people to believe he is building up cash to prepare for an upcoming stock market crash. In gray here, we have the Berkshire Hathaway cash pile by quarter from the years 1996 to 2018. The orange line represents the price of the S&P 500 during that same time period. For reference, the S&P is an index consisting of 500 of the largest publicly traded companies listed in the United States. It is generally considered a proxy for the US stock market.
Buffett has repeatedly said in public venues that it is impossible to time the market. However, this may be an example of the old saying “do as I say, not as I do”. As we can see here, despite Buffett professing that he never tries to time the stock market, he surely does always seems to have a large amount of cash ready to buy stocks when the market crashes
