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Former media executive Mel Karmazin said Wednesday he's no longer invested in the stock market, and that he's basically in cash.

In an interview on CNBC's "Squawk Box," Karmazin said the notion that there's no alternative to investing in stocks isn't true. "You don't really need to invest money if you believe the markets aren't right," he added.

"I own no shares of CBS. I own no media stock. I don't own Sirius stock. I don't any shares," he said, referring to two companies he once headed. "I'm not invested in the stock market anymore."

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Before he was CEO of Sirius XM, Karmazin was president and COO at Viacom and CEO of CBS.

"I believe that the media space is all growing and being valued on the basis of the fact that interest rates are so low. They're borrowing a whole lot of money [and] they're using that money to buy back their stock," he said.

Buying back shares reduces the float and boosts per-share earnings, which often times pushes up the stock price.

"When revenues are growing so modestly, the multiple that these companies are selling at are like all-time-high market multiples," he said. "I don't think the multiples are the right multiples."

At a time of record buybacks, Karmazin said there's not a lot of buying by company executives. "There is a question about whether or not the insiders really believe that it's a great investment to put the cash to buy back their stock [themselves]."