Warren Buffett's $334 Billion Warning to Wall Street Rang Out Loud and Clear Before the Market Turmoil. Here's Some Buffett Wisdom on What to Do Now.

Last year, as indexes soared, Warren Buffett sent a warning to investors -- not through words but through actions. The billionaire investor at the helm of Berkshire Hathaway was a net seller of stocks and built up a record cash position of $334 billion. He even reduced positions in some of his favorite stocks, including Apple and Bank of America.Buffett finished the year by closing out positions in two index funds that track the performance of the S&P 500: the Vanguard S&P 500 ETF and SPDR S&P 500 ETF Trust. The unspoken message rang out loud and clear -- declines may be on the way.Buffett's moves proved wise as indexes crumbled over the past several weeks. Of course, the famous investor didn't have a crystal ball to predict exactly what would happen and when, but Buffett's experience in the market has left him with a good sense of when stocks are becoming expensive or when market excitement may seem too pronounced.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool