European Capital Partners - Buffettly high Discover this fund | European Capital Partners
Asset management and fund structuring boutique

Buffettly high

May 16, 2024

The Buffett Indicator, a simple ratio comparing a country’s total stock market capitalization to its GDP, is frequently referenced by Warren Buffett as a measure of overall market valuation. Presently, this indicator stands at an all-time high compared to its historical trends over the past 50 years, diverging significantly from global norms. This discrepancy can be attributed to several factors, including the ascendance of Big Tech. However, we believe this situation may be somewhat exaggerated. Consequently, in our portfolios, we advocate for a highly selective approach, seeking investment opportunities beyond conventional paths to uncover undervalued quality businesses.

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