AP Photo: Paul White

OMAHA, Neb. (AP)—Billionaire Warren Buffett says stocks remain relatively cheap compared to other investments right now, and the economy continues to improve slowly.

The head of Berkshire Hathaway appeared on CNBC Monday to take questions about his annual letter to the conglomerate’s shareholders. The letter was released Saturday.

Buffett says he believes stocks will perform better than bonds, gold or any other investment option over time. He says stocks still appear relatively cheap even after prices have improved.

He says single-family homes are also really cheap. He says if he were handy and could easily buy large numbers of homes, he might invest in them.

Buffett conceded in his letter that he was dead wrong to predict the housing market would recover by now. He said Monday that he believes conditions will improve in 2012.