--- title: "Meaning & Key Takeaway of: It's quite clear that stocks are cheaper…" description: "\"It's quite clear that stocks are cheaper than bonds. I can't imagine anybody having bonds in their portfolio when they can own equities, a diversified ..." image: "https://sms4smile.com/quotes/i/5dd/warren-buffett-183_attractive_it-s-quite-clear-that-stocks-are-cheaper_376384.png" --- # It's quite clear that stocks are cheaper than bonds. I… ![“It's quite clear that stocks are cheaper than bonds. I can't imagine anybody having bonds in their portfolio when they can own equities, a diversified group of equities. But people do because they, the lack of confidence. But that's what makes for the attractive prices. If they had their…” quote by Warren Buffett](https://sms4smile.com/quotes/i/5dd/warren-buffett-183_attractive_it-s-quite-clear-that-stocks-are-cheaper_376384.png) [Download](https://sms4smile.com/quotes/i/5dd/warren-buffett-183_attractive_it-s-quite-clear-that-stocks-are-cheaper_376384.png) [Open image](https://sms4smile.com/quotes/i/5dd/warren-buffett-183_attractive_it-s-quite-clear-that-stocks-are-cheaper_376384.png) > “It's quite clear that stocks are cheaper than bonds. I can't imagine anybody having bonds in their portfolio when they can own equities, a diversified group of equities. But people do because they, the lack of confidence. But that's what makes for the attractive prices. If they had their confidence back, they wouldn't be selling at these prices. And believe me, it will come back over time.” [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Investors favor stocks over bonds when stock prices are low, but lack of confidence keeps some holding bonds, creating attractive equity prices. **In simple terms:** Stocks look cheap, bonds hold some investors. Key Takeaway Recognize market sentiment and consider equity exposure. Themes investment confidence market cycles asset allocation risk perception Mood cautious analytical optimistic Type financial strategic When to use this quote - stock market downturns - bond market stability - rebalancing portfolios - long‑term investing Key Concepts behavioral finance price dynamics portfolio diversification Questions to Reflect On - How does confidence affect asset choices? - When should you shift from bonds to stocks? A Different Perspective Confidence can shift quickly, making timing risky. ★ ★ ★ ★ ★ No ratings yet [Confidence](https://sms4smile.com/quotes/about/confidence/) [Customer](https://sms4smile.com/quotes/about/customer/) [Equity](https://sms4smile.com/quotes/about/equity/) [Investing](https://sms4smile.com/quotes/about/investing/) [Lack of confidence](https://sms4smile.com/quotes/about/lack-of-confidence/) [People](https://sms4smile.com/quotes/about/people/) [Portfolios](https://sms4smile.com/quotes/about/portfolios/) [Selling](https://sms4smile.com/quotes/about/selling/) ## Related quotes > [I believe investors should invest for the long run, so I don't buy and sell. 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