Tesla Inc (TSLA)

[Agoura Guy]

Stupid money is always the last to enter stock market bubbles at the top of parabolic moves.

Warren Buffett’s Warning: A Market Crash Is in the Cards

Warren Buffett had famously advised investors to “be fearful when others are greedy and be greedy when others are fearful.” What he meant was investors need to look for opportunities to buy quality stocks in a market sell-off.

The COVID-19 pandemic resulted in a bear market, as major indexes slumped over 35% in less than a month. It was a perfect time for the Oracle of Omaha to swoop in and buy undervalued stocks at a massive discount. However, Warren Buffett’s business partner surprised Wall Street when he confirmed that Buffett did not buy stocks in the 2020 market crash.

The cash balance of Warren Buffett-owned Berkshire Hathaway increased from $128 billion at the end of 2019 to $137 billion at the end of Q1 of 2020. So, is one of the great equity investors bearish on the stock market? Well, one of Buffett’s top indicators certainly predicts a market crash.