Billionaire Warren Buffett told CNBC on Tuesday stock market valuations make sense with interest rates where they are. Rates have been a “powerful factor” in equities values, he said.

The chairman and CEO of Berkshire Hathaway, who appeared on CNBC’s “Squawk Box,” said stocks are going to outperform bonds.

“I can’t remember decision we ever made based on the Fed,” Buffett said, stressing he buys shares of companies he likes rather than playing the overall market.

But Buffett said Berkshire is holding off selling until he see how the GOP tax reform efforts play out in Washington.

At a party for Forbes magazine’s centennial last month, Buffett said he sees the Dow at over 1 million a century from now.

The Dow closed on Monday at a new record of 22,557, the 43rd all-time high set this year. The S&P 500 and Nasdaq were also riding record closes heading into Tuesday’s session.

From the November election that saw Donald Trump elected president to Monday’s close, the Dow gained 22 percent, the S&P rose about 17.8 percent, and the Nasdaq surged 25 percent.

When Buffett was on CNBC in August, the Oracle of Omaha said he was disappointed that Trump beat Democrat Hillary Clinton but stressed he’s not in the “business of attacking any president” nor does he think he should be.

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