Warren Buffett said stocks have “moved a long way” in the past five years, going from “ridiculously cheap” to “more of less fairly priced now.” “We don’t find bargains around but we don’t think things are way overvalued either. We’re having a hard time finding things to buy.” Warren Buffett said stocks have “moved a long way” in the past five years, going from “ridiculously cheap” to “more of less fairly priced now.” “We don’t find bargains around but we don’t think things are way overvalued either. We’re having a hard time finding things to buy.”
In a live interview alongside Bank of America CEO Brian Moynihan on CNBC’s “Closing Bell,” Buffett also said the U.S. economy is continuing the “gradual increase” we’ve seen since the fall of 2009. “It just creeps along.” Buffett said it appears the Federal Reserve’s quantitative easing hasn’t worked as well as chairman Ben Bernanke would like, but he doesn’t think its been harmful either. In fact, he said the economy might be doing even worse if there was no Fed asset buying. “Maybe if they hadn’t been doing it, you’d have seen ever less than 2 percent (growth). Who knows?”
Buffett said we could be seeing the same slow rate of increase for “quite awhile” but noted that he doesn’t spend a lot of time trying to predict what the economy will do. Ask who should be the next Fed chairman, Buffett said he would have asked Bernanke to stay in the job. “When you have a .400 hitter in the lineup you don’t take him out.”
“He may want to leave, but I think he’s done — since the panic of five years ago — I think he’s done a terrific job. And I think he ought to get a little bit more of a chance to play out the hand.” Even though he thinks it is unlikely Bernanke will be staying, Buffett said he has no second choice.
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