Warren Buffett's lack of stock purchases worries Leon Cooperman - Business Insider

Warren Buffett's lack of stock purchases during the market meltdown is a red flag for Leon Cooperman, the hedge-fund billionaire said in an email this week, according to Benzinga.“Who am I to be bold？” the Omega Advisors chief asked, when the “greatest investor in my generation” isn't buying.Buffett's Berkshire Hathaway made only $1.8 billion in net stock purchases in the first quarter, and netted $6.1 billion from stock sales in April.Cooperman shared several concerns about the coronavirus pandemic's long-term impacts, and argued the S&P 500 was about 10% overvalued, Benzinga said.Visit Business Insider's homepage for more stories.

Warren Buffett's dearth of stock purchases during the coronavirus sell-off is a red flag for investors, hedge-fund billionaire Leon Cooperman said in an email this week, according to Benzinga.If the “greatest investor in my generation” isn't buying, the Omega Advisors chief said, “Who am I to be bold？”Buffett's Berkshire Hathaway conglomerate made only $1.8 billion in net stock purchases in the first quarter, and reported about $6.1 billion in net stock sales in April as it dumped its stakes in the “big four” airlines.Berkshire's vice chairman and Buffett's longtime partner, Charlie Munger, struck a cautious tone in a Wall Street Journal interview last month. “We just want to get through the typhoon, and we'd rather come out of it with a whole lot of liquidity.”

Cooperman outlined several other reasons why he's concerned about the pandemic's long-term impacts on the US economy, and fearful that markets have gotten ahead of themselves, Benzinga reported.They include greater compliance costs for companies to keep their workers safe, the decline in corporate profit margins from historic highs in January, and weaker demand if people need to prove they're immune or have been vaccinated to attend sporting events, concerts, and other gatherings.Cooperman pegged the S&P 500's fair value at 2,550, Benzinga said, suggesting the benchmark stock index is more than 10% overvalued as of Wednesday's close.Cooperman didn't immediately respond to a request for comment from Business Insider.