The Buffet Indicator, a simple but powerful tool for gauging market valuation, has reached 178%. This metric is calculated by taking a total U.S. stock market capitalization and dividing it by the country's Gross Domestic Product (GDP). Historically the indicator has been considered a warning sign of an overvalued market when it exceeds 100%, and its current level is a huge red flag.
The major driver of the overvaluation are the top 7 stocks like Nvidia and Tesla. These companies have a combined market cap of over $19 trillion, which alone represent over 1/3rd of the entire U.S. market.
That's absurd, and this concentration of value and the fact that BRK has been a net-seller of stocks for the past three years suggest intelligent investors are looking for actual value instead of the hype.
Berkshire Hathaway
BRK.A
NYSE
IPO1980
about BRK.A
Berkshire Hathaway is a conglomerate that holds significant investments across diverse industries, providing capital and expertise through its various business interests and investments.
| type | open | high | low |
market cap |
volume |
|---|---|---|---|---|---|
| stock | $744710.72 | $756607.14 | $743062.01 | $1.07T | 532 |
| eps |
price to earnings |
price to sales |
operating margin |
profit margin |
yield |
| +$0.00 | n/a | n/a | 16.67% | 32.50% | 0% |
