---
title: "Legendary Investor: Buffett's recent stock sales indicate that the market is overvalued!"
type: "News"
locale: "zh-CN"
url: "https://longbridge.com/zh-CN/news/217080288.md"
description: "Billionaire investor David Einhorn pointed out in Greenlight Capital's quarterly report that Buffett's stock sales indicate that the market is overvalued. He mentioned that the valuation of the US stock market has reached its highest level since 1996, advising investors to hold stocks cautiously. Buffett's cash reserves have reached $189 billion, demonstrating his ability to reduce risk exposure at the right time. Despite concerns about market bubbles, Greenlight Capital still adopts a low equity exposure trading strategy, with a third-quarter return rate of 1.1%"
datetime: "2024-10-17T02:54:49.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/217080288.md)
  - [en](https://longbridge.com/en/news/217080288.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/217080288.md)
---

> 支持的语言: [English](https://longbridge.com/en/news/217080288.md) | [繁體中文](https://longbridge.com/zh-HK/news/217080288.md)


# Legendary Investor: Buffett's recent stock sales indicate that the market is overvalued!

Billionaire investor and head of Greenlight Capital, David Einhorn, wrote in his hedge fund's quarterly report that investors are driving the most expensive US stocks in decades higher. **He suggested investors consider the fact that Buffett is cashing out from the bull market.**

According to Greenlight Capital's letter, **the stock market valuation has reached its highest level since the company was founded in 1996.** Now may not be a good time to hold a high equity exposure, as Greenlight Capital cited Buffett's selling of stocks to support this view.

Greenlight Capital said, "While Buffett often points out that timing the market is impossible, we have to admit that he is one of the best market forecasters we have ever seen."

The renowned Berkshire Hathaway investor has been reducing his stock positions and choosing to hold cash off the market. **As of mid-August, Buffett's cash reserves reached a record $189 billion and has since been profit-taking from successful stocks.**

Greenlight Capital stated that this "Oracle of Omaha" has a talent for reducing risk exposure at the right time. For example, the letter mentioned that Buffett closed his fund before the market became too frothy in the 1960s and sold his holdings before the 1987 crash.

The letter stated, "It can be said that avoiding bear markets is one of the reasons for his long-term outstanding returns, a point not fully appreciated by investors."

The company added that **this does not mean there is a bubble in the market.**

However, **there are indeed concerning issues in the market** such as rising price-to-earnings ratios, low dividend yields, and more.

While other market observers have also noted the market's high prices, Greenlight Capital stated that **the problem is not only with the "high valuations" of well-known tech stocks, but even mature industrial stocks with cyclical and growth opportunities have price-to-earnings ratios of 30 to 50 times.**

Based on these concerns, Greenlight Capital has taken a trading strategy, disclosing its holding of "extremely low stock beta exposure." The fund reported a return of 1.1% in the third quarter, compared to the S&P 500 index's 5.9% increase.

While the company expects its current performance to continue to lag behind the continuously rising US stocks, its investments in gold and Green Brick Partners are considered significant winners for this quarter

### 相关股票

- [Berkshire Hathaway (BRK.A.US)](https://longbridge.com/zh-CN/quote/BRK.A.US.md)
- [Berkshire Hathaway B (BRK.B.US)](https://longbridge.com/zh-CN/quote/BRK.B.US.md)

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