INSUBCONTINENT EXCLUSIVE:
As merger and acquisition (MA) activity has roared, Warren Buffett and his investing colleagues at Berkshire Hathaway have stayed on the
sidelines.
That means they missed out on an MA bonanza that saw a recordbreaking $2 trillion in deals through mid-May
just about everything is too expensive
And considering Buffett is one of the most successful investors in history, his market behavior should be watched closely.
With that said,
Valuations have only gotten more stretched over that period, suggesting that an already tenuous situation has worsened.
Russ Mould,
investment director at AJ Bell, has taken notice
director at AJ Bell, wrote in a client note
As you can see, Buffett held comparatively high levels of cash in the periods preceding the last two market crashes, in 1999 and 2007.
So
the question now becomes whether to follow Buffett to the sideline, or stay invested in a market that is, by many measures, overextended
