Warren Buffett News Today: Business Legend Discarded US Stock Market To Be ‘Too Frothy’; Convinced That It ‘Will Be Worth More Than They Are Today’
Warren Buffett News Today: Warren Buffett rejected the suggestion the U.S. stock market is "too frothy" right now as the major indexes re-approach their all-time highs according to CNBC.
"I think we're in a range, and it's a big zone always, of reasonableness. But stocks ought to be higher every 10 years.There's a plow back of earnings that goes back year after year. Stocks will become worth more decade after decade, not in any precise manner, not in an even manner or anything of the sort. But 10 years, 20 years, 30 years, stocks will be worth more than they are today," he said.
According to CNBC, Buffett answered when asked if he agreed with investor David Einhorn's warning that "we are witnessing our second tech bubble in 15 years," he doesn't always understand tech valuations, but it's not like the period before 2001 when "you could almost sell anything and capitalize eyeballs and all of that. I don't think it's reached that point and certainly I don't think the general market level is going to bubble up."
Buffett said in a discussion on CNBC began with today's Coke news that he abstained from today's shareholder vote on Coca-Cola's executive equity compensation plan.
He told Bloomberg TV's Liu that it was the first time he had abstained. He said his abstention was a vote of sorts. He added that he could never vote against Coke because he "love the company".
He told CNBC that he didn't want to express "any disapproval" with management, but that he didn't agree with the plan.
Berkshire Hathaway owned by Buffett is the biggest Coke shareholder. Buffett said he hasn't sold a share of Coke and doesn't plan to either.
According to Business Insider, he also added that he has enormous respect for Coke's CEO Muhtar Kent.
"I love the company and that the right CEO is running it and that it has a bright future."
Coca-Cola said in a statement that it "respects Mr. Buffett's philosophical stance on equity-based compensation." Calling him a "wonderful counselor through the years," Coke said it looks forward to continuing its "productive relationship" with Buffett for "many years to come."
As of December 31, Berkshire owned 400 million shares of the company, just over 9 percent of the shares outstanding. Buffett said he has no plans to sell any of them. The stake is currently worth about $16.3 billion, CNBC reported.
