Berkshire Hathaway (BRK.A) CEO Warren Buffett said stock prices are likely to rise faster than bond prices, but that many investors are choosing to buy bonds because of lack of confidence in the U.S. economy, CNBC reported.
Buffett, appearing Tuesday at the Fortune Most Powerful Women Conference in Washington, D.C., said investors are making a mistake by acquiring bonds at record-low yields, and that stocks are a better bet, according to CNBC.
"I can't imagine anybody having bonds in their portfolio when they can own equities, a diversified group of equities," Buffett said at the conference. "But that's what makes for the attractive prices."
The Berkshire chief, who was listed earlier this year by Forbes as the world's third-wealthiest person, has been bullish on the U.S. economy. Buffett said that a second, near-term recession in the U.S. is unlikely and said his companies have boosted hiring over the past couple of months, Bloomberg News reported, citing a Sept. 13 appearance by Buffett at the Montana Economic Development Summit.