Buffett: Share returns look meagre

WARREN Buffett, the US investment guru known as the Sage of Omaha, has warned investors they face meagre returns on the stock market in coming years. The billionaire told shareholders 'equity prices presage only moderate returns for investors',

His holding company, Berkshire Hathaway, sustained a £1.7bn drop in annual profits last year, a 76% plunge, partly because of insurance claims stemming from the 11 September terrorist attacks. His long-standing holdings, including American Express and Coco Cola, lost billions of dollars in value.

'Our restrained enthusiasm for these securities is matched by decidedly lukewarm feelings about the prospects for stocks in general over the next decade or so,' Buffett added.