'Canadian Warren Buffett' says tech stocks more overvalued now than during dot-com bubble

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Prem Watsa, a billionaire investor known as “the Canadian Warren Buffett,” says technology stocks are more overvalued now than during the dot-com bubble.

Prem Watsa, a billionaire investor known in the financial press as “the Canadian Warren Buffett,” says technology stocks are more absurdly overvalued now than they were during the dot-com bubble.

“Valuations of value-oriented stocks versus growth stocks, particularly technology, have never been so extreme, exceeding even the extremes of the dot-com era in 2000,” Watsa said during an earnings call for his firm, the Canadian insurance conglomerate Fairfax Financial Holdings FFH . To support his point, Watsa offered up a comparison to the dot-com crash between 2000 and 2002, which saw U.S. stocks record three consecutive years of losses led by the tech-heavy Nasdaq. The Nasdaq Composite fell by roughly 39.3% in 2000, followed by a drop of 21.1% in 2001 and 31.5% in 2002.

 

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Duh! The dot-com was ages ago. Too much ale in his diet.

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