The 'Canadian Warren Buffett' warns tech stocks are more overvalued than during the dot-com bubble - and predicts a painful selloff

• Growth stocks are more overvalued today than during the dot-com boom, Prem Watsa warned.
• The "Canadian Warren Buffett" said tech stocks appear hugely overpriced relative to value stocks.
• The billionaire investor and Fairfax Financial chief cautioned growth stocks could tumble.

A billionaire investor dubbed the "Canadian Warren Buffett" has warned technology stocks are more absurdly overpriced than during the dot-com bubble — and predicted they will suffer a dramatic decline.

"Valuations of value-oriented stocks versus growth stocks, particularly technology, have never been so extreme, exceeding even the extremes of the dot-com era in 2000," Prem Watsa said. "As the economy continues to normalize, we expect a reversion to the mean with value-oriented stocks coming to the fore."