On Interest Rates And The Stock Market

Buffett says that when he sees a US 10-year Treasury Bond at 2.4%: “I’m not salivating.”

Buffett said of interest rates around the world: “I don’t really understand it … and I don’t really have to understand it.”

On the recent moves in the stock market, Buffett said: “Well yesterday, we bought a business. We would’ve bought it if the market was down 200 points or up 200 points.”

On the stock market broadly, he said “everything is a function of interest rates … interest rates are like gravity.”

“If interest rates were 10%, all of our stocks would be worth less.” Buffett said then that with interest rates near 0%, all assets were worth more. “Every asset, at present value, is worth the cash it will return before its termination date.”

On Alibaba: “I don’t think we’ve bought an IPO in over 50 years.”

http://www.businessinsider.com/warren-buffett-speaks-on-cnbc-oct-2-2014-10?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+businessinsider+%28Business+Insider%29

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