Warren Buffett: Bonds are significantly overvalued – Business World

     Warren Buffett. Photo: Gary He / All of Press
     

The well-known investor Warren Buffet believes that the low interest rates pushed up the price of bonds. He made Monday a television appearance in CNBC, after this weekend’s investor meeting for his investment company Berkshire Hathaway.

He says he looks bonds with 20 and 30 year maturity as assets obviously will fall in value and thereby provide a higher rate of interest. According to Buffett has long-term bonds remained in a positive trend in the past three decades, writes Business Insider.

– If I had a simple way and without risk, shortening a lot of 20- or 30 -year bonds, I would do it, said Buffett.

In the same television appearance said Buffett shares represent an attractive alternative, should the low interest rates persist. Interest rates would however be higher were shares seen as relatively expensive.

– If interest rates are normalized, we will later look back and say that the stock markets were not so cheap.