Legendary US investor Mr Warren Buffett said today his Berkshire Hathaway investment company had been doing little buying in stock markets and suggested shares remained overvalued even after recent falls.
The billionaire stock picker also said the US economy was in the grip of sharp slowdown which had already begun to hit some of Berkshire's businesses.
"We're not doing a lot of buying. We're buying more planes than we are stocks," Mr Buffett told a press conference to promote Berkshire's Executive Jet unit.
Asked when it would be a good time to begin buying stocks following recent falls, Mr Buffett said "When businesses sell in the market for less than they're worth."
Dubbed "the sage of Omaha," Mr Buffett has became one of the world's wealthiest men through savvy investments he made as head of Nebraska-based Berkshire, which holds large stakes in Coca-Cola, Gillette and Washington Post.
Mr Buffett drew heavy criticism in recent years for his decision not to invest in technology, which he saw as overvalued and due for a fall. Instead, he opted to stick to businesses with solid earnings which he felt were out of favor.
His decision was vindicated when Berkshire reported net profits up 114 per cent for 2000 even as tech markets crashed.
Asked about the prospects for the US economy, Mr Buffett said he did not know if there would be a recession, but that US was in the grip of a "sharp" slowdown and he would "be surprised if it ends tomorrow."
"There's no question there's been a significant slowdown in the American economy which hits a great many of the Berkshire Hathaway businesses," Mr Buffett said.
Asked if he had any advice for investors, Mr Buffett suggested they follow his example and "do what you understand."