This Stock Market Indicator Favored by Warren Buffett Just Set a New Record, and It Could Signal a Huge Move in Stocks.

Warren Buffett is widely considered one of the greatest investors of all time. The secret to his success isn't trying to time the market. "We try to price, rather than time, purchases," Buffett wrote in 1994 letter to Berkshire Hathaway shareholders.That means Buffett will buy if, and only if, an equity offers great value relative to the business. And if the market wants to pay a premium for a stock, he's happy to sell it to them. That ensures Buffett remains mostly on the sidelines when stocks start getting expensive.There are many tools to determine if a business trades at a price above or below its intrinsic value. But right now, one market indicator, dubbed the Buffett Indicator, is flashing a big red warning sign that the entire market may be overvalued.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool