How Warren Buffett Values Stocks Today

On Monday, the billionaire investor Warren Buffett mentioned that the stock market would be looked upon as cheap if interest rates would stay as low as they are.

“If these interest rates were to continue for 10 years, stocks would be extremely cheap now,” said the CEO and chairman of Berkshire Hathaway on CNBC’s Squawk Box on Monday, just two days after the annual shareholder meeting held in Omaha.

Buffett also said that if interest rates were to normalize, stocks would be on the higher side on a valuation basis.

And he also said that bonds are very overvalued and stocks are the cheaper of the two.

“If I had an easy way, and a nonrisk way, of shorting a lot of 20 year or 30 year bonds, I would do it. But that’s not my game. It can’t be done in the quantity that would make sense for us.”

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