Billionaire investor Warren Buffett says stock prices have gotten a boost from low interest rates caused by the Federal Reserve's stimulus efforts.
The chairman and CEO of Berkshire Hathaway Inc. addressed a variety of topics during an interview on CNBC on Monday.
He says there's no question that stock prices are higher than they would be otherwise, because interest rates are essentially zero.
Buffett says many money managers will be selling some investments when the Fed stops pumping extra money into the economy. He says it will be a "very interesting day" when it becomes clear the Fed has reversed direction.
"I think the Fed will try to give little signals here and all of that. But in the end, there are an awful lot of people who want to get out of a lot of assets if they think the Fed is going to tighten a lot."
For now, Buffett said he still sees "good value" in stocks despite soaring share prices in most cases.
"Anything I bought at $80 I don't like as well at $100. But if you're asking me if stocks are cheaper than other forms of investment, in my view the answer is yes. We're buying stocks now. But not because we expect them to go up. We're buying them because we think we're getting good value for them," he said.
While stocks aren't "as cheap as they were four years ago," you "get more for your money" compared to other investments right now.
© Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.