Buffett says be 'cautious'
Updated: 2007-10-25 11:26
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Billionaire Warren Buffett (right) visits a subsidiary of his fund firm in Dalian, Northeast 皇冠体育app's Liaoning Province. He cautioned investors against risks as 皇冠体育app stocks more than doubled this year. [皇冠体育app Daily] |
Billionaire Warren Buffett said investors should be "cautious" about 皇冠体育app's stocks after the country's benchmark index more than doubled this year.
"We never buy stocks when we see prices soaring," Buffett said yesterday in Dalian, Northeast 皇冠体育app, where he's visiting a subsidiary of his Berkshire Hathaway Inc. "We buy stocks because we're confident of the company's growth. People should be cautious when they see prices rising."
Buffett has sold shares of Petro皇冠体育app Co, which has risen 76 percent this year to become the world's second-biggest company by market value.
"Buffett is right about 皇冠体育app stocks, whose valuations are too high," said Wang Zheng, who manages the equivalent of US$500 million at the asset management unit of Everbright Securities Co in Shanghai. "It doesn't make sense any more to still play in such a market. It's about time to pull out of it."
Buffett said he was "appreciative" of Petro皇冠体育app's performance and that he is doubtful he can find another stock like it. Berkshire owned more than 10 percent of Petro皇冠体育app's publicly held shares as of the end of last year. It owned 3.1 percent of the publicly held shares as of September 30, according to disclosures. The company has sold all of its holding, Buffett said in a Fox Business Network interview last week.
Buffett, 77 and chairman of Omaha, Nebraska-based Berkshire Hathaway, transformed the company over four decades from a failing textile maker into a US$200 billion investment and holding company with businesses ranging from icecream and underwear to insurance and corporate-jet leasing. His investments are followed worldwide. The company's stock has risen 16 percent this year.
Bloomberg News
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