Warren Buffett Talks Up Stocks, Bashes Bonds

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Chamorrita
Posts: 20
Joined: Sat Jan 07, 2017 11:45 pm

Warren Buffett Talks Up Stocks, Bashes Bonds

Post by Chamorrita »

I only caught bits and pieces of his 3-hour interview this morning on Squawk Box. The parts I did see were encouraging for folks buying stocks and ETFs though. Hope to watch the entire interview later.

Here are some highlights.

http://www.cnbc.com/2017/02/27/buffett- ... funds.html
Susie

Scorpio70
Posts: 432
Joined: Thu Dec 24, 2015 11:49 am

Re: Warren Buffett Talks Up Stocks, Bashes Bonds

Post by Scorpio70 »

I feel like that is common sense at this point. Bonds at this point are not looking very good given the fact that it has been a long time since higher rates have been paid. Now that the rates are going up again, the bonds made recently are a poor investment for yield.

bunchnuts3
Posts: 6
Joined: Wed Jan 30, 2013 11:10 am

Re: Warren Buffett Talks Up Stocks, Bashes Bonds

Post by bunchnuts3 »

He decisively stated that stocks were not currently overvalued implying the market had much further room to run. He did, however, indicate that BH stopped buying Apple after earnings and the run up. He said they had a lot of cash to deploy but nothing big in the works right now. He does not like overpaying - nor should we.

skiehawk11
Posts: 2116
Joined: Wed Jan 05, 2011 2:32 pm

Re: Warren Buffett Talks Up Stocks, Bashes Bonds

Post by skiehawk11 »

An easy Graham metric of a fair value P/E ratio is the AAA yield x2 divided into 100. Right now, that is a P/E ratio of 14.

http://www.rbcpa.com/Simple-and-Easy-Ap ... m-1976.pdf

http://www.wsj.com/mdc/public/page/2_3021-peyield.html
http://www.multpl.com/

Overvalued in general, but not in bubble territory. Compared to 2000 when the fair value P/E ratio was 7 at an AAA yield over 7 percent. The S&P 500 P/E ratio was over 30.

bunchnuts3
Posts: 6
Joined: Wed Jan 30, 2013 11:10 am

Re: Warren Buffett Talks Up Stocks, Bashes Bonds

Post by bunchnuts3 »

The CNBC Squawk Box interview with Ron Barron about two weeks ago was much more epic thank Buffett's in my opinion. Recommend you look that one up - it will give you some needed perspective during this market melt-up.

http://www.bing.com/news/search?q=CNBC% ... dlt=strict

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