News · Yahoo Finance

Billionaire Warren Buffett's Warning Before the Dot-Com Crash Offers a Lesson for Today's Investors

The article recalls advice Warren Buffett gave more than 25 years ago on how investors can prepare for a possible stock market crash, which it argues could be especially relevant today. It notes that Buffett, 96, stepped down as chairman of Berkshire Hathaway in September after more than five decades in the role.

Summary written by Upside AI from the original article. Read the source for full details.

Original headline: Billionaire Warren Buffett’s Warning Before the Dot-Com Crash Offers a Lesson for Today’s Investors

Read the original on Yahoo Finance ↗

Keywords

Warren BuffettBerkshire Hathawayasset bubbles

Open a keyword to see other news on the same topic.

Related news

  • Warren Buffett's Successor, Greg Abel, Just Went Shopping in the Tech Sector Again!

    Greg Abel took over day-to-day oversight of Berkshire Hathaway's $363 billion portfolio after Warren Buffett retired on Dec. 31, and has already made major moves, including aggressive purchases of Alphabet in the first half of the year. According to an Oct. 14 SEC filing, Berkshire is buying 10 million shares of Bending Spoons in a private placement at $33 per share, a $330 million investment that follows a $600 million stake bought at the company's July IPO. The article argues that Alphabet has replaced Apple as Abel's favored holding, citing Google's near-monopoly in search (around 90% of global internet search traffic in September) and its AI push, especially at Google Cloud. Bending Spoons acquires tech platforms and uses software, AI, price hikes and layoffs to boost efficiency; it is already profitable and growing fast.

    Yahoo Finance·▲ GOOGLGOOGLBerkshire HathawayWarren Buffett
  • 2 Stocks to Buy From the 5 That Make Up Roughly 61.5% of Berkshire Hathaway's Portfolio

    The article notes that Berkshire Hathaway's roughly $365 billion stock portfolio is highly concentrated, with five holdings making up about 61.5%: Apple (21.5%), American Express (13%), Coca-Cola (10.3%), Alphabet (9.9%) and Bank of America (6.8%). Berkshire has held American Express and Coca-Cola since its initial purchases in the 1980s and 1990s, and has trimmed Bank of America in recent quarters, while Alphabet is its newest large position. The author names Apple and Coca-Cola as the two top picks in this group, citing Apple's buybacks of over $850 billion since 2013 and its limited AI infrastructure spending, and Coca-Cola's long record of dividend growth and a stock up nearly 35% this year.

    Yahoo Finance·Berkshire HathawayWarren BuffettApple
  • Berkshire Hathaway's New Top Holding Owns Its Market

    Under Greg Abel, Berkshire Hathaway has made few major changes, though it resumed share buybacks for the first time since 2024. Berkshire began buying Alphabet while Warren Buffett was still CEO and has increased the stake substantially since, and Alphabet now makes up about 12.6% of the portfolio, its third-largest position. Google still holds roughly 90% of the search market, but eMarketer projects Meta will overtake Alphabet as the top digital ad company this year, with a 26.8% share versus 26.4% for Alphabet. Alphabet's ad business is still expected to grow about 12% in 2026, while Google Cloud sales rose 82% to $24.8 billion in the second quarter. The author suggests Berkshire could buy more Alphabet stock at some point.

    Yahoo Finance·▲ GOOGLGOOGLBerkshire HathawayWarren Buffett
  • Warren Buffett's Berkshire Hathaway Compounded at More Than 19% a Year Over 6 Decades, Nearly Double the S&P 500's 10% Return. Can Investors Still Apply That Playbook Today?

    The article looks at Warren Buffett's record at Berkshire Hathaway, which from 1964 to 2024 posted returns of 5,502,284%, or compounded annual growth of about 19.9%, versus 10.4% for the S&P 500 over the same six decades. The author argues that few investors can copy his exact playbook, but anyone can adopt his habits: buying companies they understand and believe in, such as Coca-Cola, holding investments for the long term, and steadily buying low-cost S&P 500 index funds rather than trying to beat the market by picking stocks.

    Yahoo Finance·Warren BuffettBerkshire HathawayS&P 500
  • BNSF Paid Berkshire Hathaway $4.4 Billion in Dividends Last Year. Berkshire Bought It for $34.5 Billion in 2010.

    According to Greg Abel's 2025 shareholder letter, BNSF, the railroad owned by Berkshire Hathaway, generated $8.1 billion in operating earnings in 2025, and $4.4 billion of that was paid to Berkshire as a cash dividend, with the company on pace to at least match that again this year. In the first half of 2026, BNSF's operating earnings reached just over $2.9 billion, up nearly 10% year over year. Berkshire paid $34.5 billion for BNSF in 2010, and the effective dividend yield on that initial investment is now 12.7% after 16 years, not counting the appreciation of the railroad's value. Estimates of BNSF's market value range from $75 billion to $200 billion, and Warren Buffett has described it as Berkshire's second-most-valuable asset, mainly because of the cash it produces. The author suggests shareholders might prefer that Abel make more acquisitions of small cash-generating companies rather than use Berkshire's $365.5 billion in uninvested cash to buy stocks.

    Yahoo Finance·Berkshire HathawaydividendsWarren Buffett
  • Warren Buffett warned about stock valuations but Berkshire Hathaway is aggressively purchasing stockseconomictimes.indiatimes.com·• SPYWarren BuffettBerkshire Hathawayvaluation

Related markets

Currencies →Gold →

Latest news

  • The simple reason JPMorgan thinks SpaceX will triple: It's going after a $28 trillion market

    SpaceX (SPCX) rose 10% on Wednesday after reporting its second earnings as a public company, which showed a profit and large AI revenue. JPMorgan analyst Doug Anmuth more than doubled his price target to $500 from $240, implying upside of over 200% from Wednesday's price. He wrote that no other company is as well positioned to pursue the combined anticipated total addressable market of $28T+. AI, tied to Grok, has overtaken rockets, satellites, telecom and chips to become SpaceX's largest business by revenue. Musk projects annual recurring revenue of between $500 billion and $1 trillion by the end of 2027, and the boards of SpaceX and Tesla have formed special committees to explore a tie-up.

    Yahoo Finance·▲ TSLASpaceXJPMorganTSLA
  • A Once-in-a-Generation Opportunity: 1 Artificial Intelligence (AI) Stock to Buy Before it Soars 1,233%, According to Cathie Wood

    Ark Invest's updated valuation model, led by Cathie Wood, projects Tesla shares could reach $5,000 by 2031 in its upside scenario, versus about $375 currently. The downside scenario still reaches $3,300 per share, while the bull case implies a $20.4 trillion market cap, $1.62 trillion in revenue and a 65% EBITDA margin, compared with Tesla's $95 billion in 2025 revenue and 15.4% adjusted EBITDA margin. Ark estimates robotaxis will account for 80% of Tesla's enterprise value by 2031, with 10 million robotaxis generating $900 billion in annual revenue and 1.2 million Optimus robots generating $254 billion. The author views the current robotaxi operation as small compared with Ark's fleet and Optimus as speculative, and notes Tesla already trades at a premium valuation, so he sees it as a speculative long-term investment and would not buy simply because of a forecast of more than 1,200% upside.

    Yahoo Finance·TeslaCathie Woodvaluation
  • Is It Time to Sell CoreWeave Stock? Nvidia CEO Jensen Huang Doesn't Think So.

    CoreWeave shares fell about 25% from Oct. 12 to Oct. 16 as yields on its debt spiked to 15%, a level the article classifies as distressed debt that signals market doubts about repayment. Nvidia, which held about 47 million shares as of the second quarter, roughly 10% of CoreWeave's total float, has a CEO, Jensen Huang, who says he is 'optimistic' and that CoreWeave's cost of capital is actually decreasing. The article notes CoreWeave is unprofitable but growing revenue rapidly, and that its bonds were initially issued at high yields, showing a gap between market and creditor views. The author is not racing to buy the debt but is not bearish, and believes the stock should be fine if CoreWeave delivers on the major deals it has signed.

    Yahoo Finance·▲ NVDACoreWeaveNVDAbonds
  • Netflix has dipped its toe into theatrical. Is it ready to jump in?

    On its Q3 earnings call, Netflix co-CEO Ted Sarandos reaffirmed the streamer's streaming-first strategy, even as the company plans 30 theatrical releases in 2027, on par with 2026. One test is Greta Gerwig's 'Narnia: The Magician's Nephew,' which will get a wide release and a 49-day exclusive theatrical window in February. The move comes as the stock has slumped roughly 30% since January and view hours growth has stalled, and as Netflix restructured its leadership by bringing in former Disney executive Peter Rice as chief content officer and dismissing head of film Dan Lin. Wedbush analyst Alicia Reese argues theatrical releases are a net positive for reach and streaming demand, while Citizens analyst Matthew Condon says theatrical can help build stronger IP and attract top talent. Sarandos said the business flywheel is working but U.S. execution needs to improve, and that Netflix needs more 'home runs.'

    CNBC·Netflixstreamingmovie theaters
  • Judge orders Meta to pay $25 bn to New Mexico in Cambridge Analytica case

    A New Mexico judge ruled that Meta must pay the state $25 billion in the Cambridge Analytica case, after a jury last month found the company had deceived users. The penalty comes a couple of months after Meta agreed to pay $18 billion to settle claims brought by 48 other states. Cambridge Analytica improperly harvested personal data from millions of Facebook users for targeted political advertising, including through a personality quiz app that reached roughly 87 million users worldwide. Jurors found the misconduct affected all of the state's more than 2.1 million residents. Meta said it disagreed with the verdict and would keep defending itself.

    Yahoo Finance·▼ METAMETACambridge Analyticaregulation
  • The AI Boom Just Sent a Warning Sign That Has Nothing to Do With Stock Prices

    CoreWeave's share price has dropped more than 30% in about two weeks, and its bonds sold off sharply: notes issued earlier this year at a 9.675% yield now yield around 15%, meaning the market is pricing in much more risk. The author asks whether this signals a broader repricing over whether AI companies will earn enough return on their massive infrastructure spending, given CoreWeave's costly data centers and the long path to break-even. As an illustration, refinancing a hypothetical $1 billion loan at 15% instead of its original terms would add roughly $53 million in annual expenses, and the author compares the situation to the fiber-optic telecom build-out about 30 years ago. Credit spreads have widened about 50 basis points over the past month, an early warning rather than real systemic stress. Still, the author would not sell tech stocks or the S&P 500 over CoreWeave alone, and prefers companies financing AI expansion through cash flow rather than heavy debt.

    Yahoo Finance·• NVDACoreWeaveAI investmentbonds

All news →

Get the briefing on Telegram or Zalo

Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.