Billionaire investor Warren Buffett on Saturday said long-term bonds are a "terrible investment." In response to a question on the outlook for Treasurys, the Berkshire Hathaway chairman and chief executive dismissed the appeal of long-term bonds, while noting, as an aside, that rising short-term yields mean Berkshire's holdings, which have an average maturity of around four months, have produced around $500 million more pre-tax income than at the same time last year. Buffett noted an after-tax return on a 10-year note would come in near 2.5%, while the Fed is working to push inflation to 2%. Berkshire Vice Chairman Charlie Munger said the near-zero interest rates implemented by the Fed in response to the Great Recession weren't fair to savers but were of enormous benefit to holders of other assets, including Berkshire shareholders. "We're a bunch of undeserving people and we hope that we continue to be so," Munger said.