So called “Oracle of Omaha” aka Warren Buffett, the largest shareholder of Berkshire Hathaway is generally considered one of the smartest people in the investment world, and his views are always worth to listen up. However, this time I want to point out at BRK.A shares.
These shares have seen great growth in the long run. They have grown a lot in several cycles. So, I decided to look how Berkshire shares doing at the moment.
So here it is. Berkshire stocks tend to grow cyclically parabolically. Each cycle has ended with very volatile movements and correction. When I look at what’s going now, I get the feeling that this is the case for an end of the cycle again.
Each time BRK.A shares experience an adjustment, the adjustment is +/- 50%. This time the correction was only 30% which suggest that there should be a 50% correction as well.
Why is this important? Because Buffet correlates with the market. Below is a picture of his shares correlating with and SP500.
Maybe this trend indicates an impending market correction?
Oracle himself is also waiting for this, as he continues to "sit on the money" waiting for the correction and the opportunity to shop. Check out this article if you want to read more about this topic.
Stay tuned!
Agris