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**REWahoo** · 03-04-2006, 03:05 PM

Buffett: caution ahead
The Oracle of Omaha sees modest growth for stocks...

By Shaheen Pasha, CNNMoney.com staff writer
March 4, 2006: 9:44 AM EST

NEW YORK (CNNMoney.com) - In his annual letter to Berkshire Hathaway shareholders, released Saturday, billionaire investor Warren Buffett said he made few changes to the company's stock holdings but cautioned investors that the portfolio's returns may be modest over the next several years.

Buffett said while the company stands by its major holdings -- all "strong, highly-profitable businesses" -- current valuations aren't cheap. He said the group may double in value over the next 10 years with average annual per-share earnings gains of between 6 percent and 8 percent. Stock values, he said, will likely match that growth.

As for the overall stock market, Buffett braces investors for more modest returns to come, citing increased "frictional" costs that eat away at performance. These include costs related to trading, advice and money management.

http://money.cnn.com/2006/03/04/mark...ex.htm?cnn=yes

03-04-2006, 03:05 PM	#1
REWahoo Administrator Join Date: Jun 2002 Location: Texas Hill Country Posts: 16,480	Buffett: caution ahead The Oracle of Omaha sees modest growth for stocks... By Shaheen Pasha, CNNMoney.com staff writer March 4, 2006: 9:44 AM EST NEW YORK (CNNMoney.com) - In his annual letter to Berkshire Hathaway shareholders, released Saturday, billionaire investor Warren Buffett said he made few changes to the company's stock holdings but cautioned investors that the portfolio's returns may be modest over the next several years. Buffett said while the company stands by its major holdings -- all "strong, highly-profitable businesses" -- current valuations aren't cheap. He said the group may double in value over the next 10 years with average annual per-share earnings gains of between 6 percent and 8 percent. Stock values, he said, will likely match that growth. As for the overall stock market, Buffett braces investors for more modest returns to come, citing increased "frictional" costs that eat away at performance. These include costs related to trading, advice and money management. http://money.cnn.com/2006/03/04/mark...ex.htm?cnn=yes __________________ Numbers is hard...