Warren Buffet's annual letter summarized in Fortune, full letter at Berkshire Hathaway.
Despite three years of falling prices, which have significantly improved the attractiveness of common stocks, we still find very few that even mildly interest us

And it's true that stocks are still overpriced by historical standards. Price-earnings ratios need to get down to 15 or so to match the historical average. Buffet would prefer even lower ones.