Explained in plain English
What is the Buffett Indicator?
The Buffett Indicator compares the total value of the stock market to the country's GDP. A high ratio suggests the market might be overvalued, meaning stocks are generally expensive compared to the economy's output. Berkshire Hathaway's cash pile suggests they believe this indicator is currently flashing a warning.
Stories that explain this
Berkshire Hathaway holds record cash as market shows warning signsThis explainer came from a news story
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