COMMENT Everyone knows that when the shoeshine boy offers you investment advice, it is time to sell. So what should you do when the Sage of Omaha does the same thing? Warren Buffett announced last week that he was buying US stocks on his personal account. “Be fearful when others are greedy, and be greedy when others are fearful,” he advised, not for the first time.
But is he right? Long-run price/earnings data show two things: that US stocks seem cheap by historical standards, and that there is scope for them to get much cheaper.
