"I would say that they're in a zone of reasonableness," Buffett said. "Five years ago, I wrote an article for The New York Times that said they were very cheap. And every now and then, you can see that that they're very overpriced or very underpriced. Most of the time, they're in an area where maybe they're a little high, a little low, and nobody really knows exactly. They're definitely not way overpriced. They're definitely not underpriced."
Repeating his standard warning that he doesn't know what stocks will do in the "next week or next month or next year," Buffett said, "We've come back a long way from where we were five years ago, and you'll see, if you live long enough, you'll see a lot higher prices."
More specifically, Buffett predicted "five or ten years from now, I would say that they're very likely to be higher."