Buffett Says Stocks Still Too Expensive

The bull is back? Not so fast, says Warren Buffett.

Buffett, one of America’s most respected investors, said Tuesday that many U.S. stocks are still overvalued and must decline further before he considers them a good investment.

The United States is suffering an economic downturn, Buffett told reporters in London, but he stopped short of calling it a recession. Buffett, chairman and chief executive of Berkshire Hathaway Inc. (BRK), said he would start buying shares again “when businesses sell for less in the market than they’re worth.”

Buffett reasserted his well-known aversion to shares in high-tech companies, saying he hasn’t bought any despite the plunge in share prices for dot-com businesses over the last year.