The "Buffett" Indicator

Warren Buffett in 2001, called his invention to be "probably the best single measure of where valuations stand at any given moment", as it compares the capitalization of the US Wilshire 5000 index to US GDP.

The Buffett Indicator is a market valuation metric that compares the total market capitalization of publicly traded equities to the overall size of the economy, typically proxied by nominal GDP. It serves as a broad gauge of equity market valuation, indicating whether the market is overvalued or undervalued relative to historical norms.

Click "here" to get latest update on Buffet Indicator.

This measure is frequently cited in financial media and academic discourse, both in its raw form and adjusted for long-term structural trends, as an indicator of systemic valuation levels in the U.S. equity market.

Jishnu Chatterjee,
June 27, 2025.
Author is a Jack-of-All trades. He believes that specialization is for insects. Author is a public servant, a Linux evangelist, chess enthusiast and a long-term investor.