Warren Buffett and Broadcom’s CEO Issue a Similar Blunt Warning to Wall Street. Here’s What Investors Should Do Next, According to a Key Buffett Investing Principle.
The S&P 500 has roared higher in recent years, driven in particular by artificial intelligence (AI) stocks. Investors have been eager to get in on the players potentially leading a fresh technology revolution that may eventually supercharge earnings growth. Some companies — and their shareholders — are already winning. For example, memory maker Sandisk has jumped 500% this year, while AI software company Palantir Technologies has advanced 1,100% over the past three years. And this follows soaring revenue thanks, at least in part, to AI demand.
Though the overall picture remains bright, with the S&P 500 reaching new record highs in recent times, some investors have started to worry about potential risks and headwinds — from the sustainability of AI spending to the general economic backdrop. And just recently, two major figures in the market spoke out in a similar manner.
Billionaire investor Warren Buffett and Broadcom chief executive officer Hock Tan each issued a similar blunt warning to Wall Street. Let’s take a closer look — and consider what you should do next, according to a key Buffett investing principle.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.