Warren Buffett Holding Record $325B in Cash
Warren Buffett Is Selling Stocks and Loading Up on Cash. Is That a Red Flag for Investors? – Motley Fool, 08/29/2024
Warren Buffett’s stock-selling spree surpasses $10 billion - Fortune Magazine 10/07/2024
Cash and Short Term Investments
Buffett raises cash to a record $325 Billion.
The value of cash and fixed income investments maturing within one year controlled by Warren Buffett.
source www.ycharts.com
The Buffett Indicator
The Buffett Indicator is the ratio of the total United States stock market to GDP.
It expresses the value of the US stock market in terms of the size of the US economy. If the stock market value is growing much faster than the actual economy, then it may be in a bubble.
At 2 standard deviations above trend the indicator signals a market at an extremely high valuation.
DEFINITIONS
Buffett Indicator - also known as Market Cap to GDP, has gained prominence as a long-term valuation indicator for stocks, largely due to Warren Buffett's endorsement. In a Fortune Magazine interview back in 2001, Buffett referred to it as "probably the best single measure of where valuations stand at any given moment.
Cash and Short Term Investments - Cash and Short Term investments is the sum of two balance sheet line items: cash and equivalents and short term investments in marketable securities.
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