Amid a glut of IPOs this year, Berkshire Hathaway's CEO warns retail investors not to get carried away with the euphoria.
On the eve of Lyft's much-anticipated initial public offering, billionaire investor Warren Buffett said regular investors shouldn't attempt to buy hot offerings in a hot market.
The high level of interest in Lyft's offering has raised its anticipated price, putting a valuation on the ride-hailing company at well over $20 billion even though it is not yet profitable."I think buying new offerings during hot periods in the market....I don't think it's anything the average person should think about at all," Buffett told CNBC's Becky Quick at the Gatehouse's Hands Up for Success luncheon in Grapevine, Texas.
Last year, he told CNBC he had considered taking a private stake in Uber, Lyft's ride-hailing rival, which is also expected to debut this year. But Uber and Berkshire disagreed over the terms and size of the stake. Buffett still told CNBC's Quick then that he was a big admirer of Uber CEO Dara Khosrowshahi.
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