[ad_1]
Friday, the preferred market indicator of Berkshire Hathaway Inc. (NYSE: BRK.A) (NYSE: BRK.B), Warren Buffett (Trades, Portfolio), reached 140.3%, or about 6% more that his reading from February 134 to February 1. and 16.7% higher than its January 2nd reading of 123.6%.
Dow has risen sharply in the last two months
Although the Dow Jones industrial average briefly exceeded 26,100 in morning trading, it closed at 26,028.76, down 103.59 points from the intraday peak of 26,132.35 but 112.76 points. on a closing of 25,916. Despite this, the index has risen by approximately 3,346.54 points since January 3, its lowest level of 22,682.22. Similarly, Buffett's major holdings, Apple Inc. (NASDAQ: AAPL), closed at $ 174.97, up cumulative total of $ 142.19 since the beginning of the year.
Figure 1
According to the chart of predefined and real returns, the expected return on the US market ranges from -9.50% in the most pessimistic case to 3.10% in the most optimistic case. The green, blue and red lines in Figure 2 show projected returns if the Buffett indicator averages 40%, 80% and 120% over the next eight years.
James Li
I am a writing assistant and researcher at GuruFocus. I have a master's degree in finance from SMU and I like to write reports on financial trends and investor portfolios. Follow me on Twitter @JamesLiGuru!