In Berkshire Hathaway’s annual letter, Warren Buffett made headlines by suggesting he has lots of cash, but can’t find any companies to buy due to valuation.  In this statement he was referring to buying entire companies vs. public stocks, because he is anticipating buying in the public market.  In Becky Quick’s CNBC interview this morning, she asked him about the statement on valuation, and he responded by saying that if interest rates were to stay near current levels, the market was substantially undervalued.  THIS IS A VERY IMPORTANT STATEMENT because it supports our view that there is no indication inflation is rising too much, and the Fed has adopted a more dovish tone that has led to a dramatic improvement in market sentiment. 

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