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Warren Buffett CNBC Interview 3/3/2014 [VIDEO]

Warren Buffett CNBC Interview – Warren Buffett is on CNBC this morning from 6am-9AM EST. Warren Buffett released his letter to shareholders this past Saturday, you can find the full letter here. We will be updating this post all morning when CNBC releases new clips, so come back for more.

warren buffett cnbc interview

Warren Buffett, Berkshire Hathaway chairman & CEO, explains why he doesn’t solely depend on the macro view when making investment decisions.

 

Warren Buffett CNBC Interview

but i did explain because i — i laid out what i thought the average person was not an expert on stocks should do. and my widow would not be an expert on stocks. i want to be sure she gets a decent result. since all my berkshire share res going to philanthropy, the question becomes what does she do with the cash that’s left to her? part of it goes outright, part of it goes to a trustee. they’re invested 10% in re — she’ll do fine with that. anybody will do fine with that. it’s low cost, it’s in a bunch of wonderful businesses, and, you know, that takes care of itself. you specifically said a vanguard index. right. it’s a very, very low cost index fund. and there are others. there are others that aren’t so low cost. and keeping costs to a minimum is enormously important in investing, whether it’s farms or buildings in new york or — but particularly in stocks. it is — if you’re in effect paying out 1% or2% annually of your portfolio, that’s a big, big tax that you don’t have to pay.

Warren Buffett CNBC Interview

Warren Buffett CNBC Interview

but i did explain because i — i laid out what i thought the average person was not an expert on stocks should do. and my widow would not be an expert on stocks. i want to be sure she gets a decent result. since all my berkshire share res going to philanthropy, the question becomes what does she do with the cash that’s left to her? part of it goes outright, part of it goes to a trustee. they’re invested 10% in re — she’ll do fine with that. anybody will do fine with that. it’s low cost, it’s in a bunch of wonderful businesses, and, you know, that takes care of itself. you specifically said a vanguard index. right. it’s a very, very low cost index fund. and there are others. there are others that aren’t so low cost. and keeping costs to a minimum is enormously important in investing, whether it’s farms or buildings in new york or — but particularly in stocks. it is — if you’re in effect paying out 1% or2% annually of your portfolio, that’s a big, big tax that you don’t have to pay.

Warren Buffett CNBC Interview

Warren Buffett CNBC Interview

Warren Buffett, Berkshire Hathaway chairman & CEO, explains why it is very unlikely he would sell his holdings in Wells Fargo, Coca Cola and American Express within the next five years. We like adding big chucks of earning power, explains Buffett. Buffett also comments on the performance of IBM as the company goes through a transition.

Warren Buffett CNBC Interview

Warren Buffett, Berkshire Hathaway chairman & CEO, explains why it is very unlikely he would sell his holdings in Wells Fargo, Coca Cola and American Express within the next five years. We like adding big chucks of earning power, explains Buffett. Buffett also comments on the performance of IBM as the company goes through a transition.

Warren Buffett CNBC Interview

Warren Buffett, Berkshire Hathaway chairman & CEO, shares his thoughts on buying another company and why he intends to hold onto Heinz forever.

ame, but both georgia power lemon who is my partner in that and i would love to do another one. and they have an appetite for making acquisitions. and so do you. yeah. we’re is a good pair that way. everything that’s happened with heinz, everything has been satisfactory and i look forward to working with lemann again. we’ve got to zero based budgeting. as i said in my report, i would expect the earnings of heinz to be significantly better this year than any year in history. you pointed out that you’re not somebody — the difference between this and a private equity deal is that speshg shire plans on holding this for a long, long time. forever. forever. would you be surprised, though, to see a heinz ipo sometime in the next five to seven years. that could happen because the 3g people did that with burger king. they have a number of investors. i don’t know how many. the primary investors i know. but they — no, i just don’t know the number. but some of those people undoubtedly will want to get out. they might have a chance to get out under a significant profit. when they do, we have no obligation to — they have no obligation to sell their shares to us and we — so it would be totally voluntary on their part. but if they were going to sell their shares, and i pound the price acceptable, i would buy the share for them. and we would find equal partners even if the shares were somewhat different. but i would like overtime to increase its share. it’s forever. it’s — it will be a profitable business. it will be a worldwide business. and it is a worldwide business. it just fits into berkshire. our problem is putting money to work. we’re not looking to take money out of things. we’re looking to put more money

Warren Buffett CNBC Interview

Warren Buffett CNBC Interview

Warren Buffett, Berkshire Hathaway chairman & CEO, shares his outlook on rails. It should be a very profitable business, says Buffett. Buffett also weighs in on why he thinks the Keystone Pipeline is a good idea for the country.

Warren Buffett CNBC Interview

Warren Buffett CNBC Interview

Warren Buffett CNBC Interview

Warren Buffett CNBC Interview

the earned income tax credit is much clearer. that puts more money in the pockets of people working for low wages. that’s what i’d like to see. it doesn’t distort the market system in any great way. but you know, that’s the way i would go. berkshire employs 330,000 employees? 330,000. how many of them make minimum wage? very, very few. i can’t give you the answer. it would be very, very few. let’s ask a related question that comes in from ian m. what’s the greatest thing the obama administration could do to accelerate job growth? well, i think that — obviously further fiscal stimulus would increase job growth. but you pay a price for that. i think — i think the market system will grow jobs over time as it has been the last four years. it’s just we had such a shock to the system five years ago. we really were in the emergency room. and the recovery has been slow. i think most people expected that but they’re still disappointed with it as it happens. we had sam zell on squawk box on friday. he came up with an interesting analogy. he almost put some of the blame on the federal reserve at this point saying when you have zero interest rates it’s like not having a shot clock in a basketball game. there’s no severe incentive to get money into investments, people think they have time. i disagree with that. if i’m at zero interest rate, i want to get it out. we invested over $11 billion last year. that was a record for us. any project that comes to me that has a reasonable payout, whether it’s wind farms in iowa, whatever it may be, i love building more freight cars, whatever it may be. zero interest rate pushes me. if interest rates were 15%, i would be sitting there with a 15% alternative and it would be much tougher for capital projects to catch my eye.

Warren Buffett CNBC Interview

CNBC’s Becky Quick asks billionaire Warren Buffett, how much money he has given away in the past several year. The CEO of Berkshire Hathaway also weighs in on the impact of weather on his insurance business. We’ve had very few hurricanes, says Buffett.

Warren Buffett CNBC Interview

Warren Buffett CNBC Interview

Warren Buffett CNBC Interview

Warren Buffett, Berkshire Hathaway chairman & CEO, shares his thoughts on financial regulations and its impact on his holdings. Buffet also shares his thought on the “stalemate” in Washington. It’s had to see much happening until attitudes change, says Buffett.

Warren Buffett CNBC Interview

Warren Buffett CNBC Interview

Warren Buffett, Berkshire Hathaway chairman & CEO, says he felt good when he saw a London stock he was interested in buying trading lower on the growing fears over Russian aggression in the Ukraine. One thing that you can be sure, if there is a war, the value of money would go down, says Buffett.

Warren Buffett CNBC Interview

Warren Buffett CNBC Interview

when i got up this morning i looked at a stock on the computer in the trades in london that were buying. it’s down and i felt good. what was the stock? it was an english stock. so you look at this — would you have done that anyway, or not the futures were down, would you still be buying? i had a price limit on it and we were buying it on friday. but it’s cheaper this morning. that’s good news. so you buy more as a result? absolutely. when people start to think this could be the beginning of something really bad, it could be even a world war iii situation, a return to the cold war. does any of that ever go through your mined? well, if you tell me all of that’s going to happen, i will still be buying the stock. you’re going to invest your money in something over time. the one thing you could be quite sure of is that we went into major war, the value of money would go down. that’s happened in virtually ever war that i’m aware of. so the last thing you’d want to do is hold money during a war. you might want to own a farm, own an apartment house. you might want to own securities. but during world war ii, you know, the stock market advanced. the stock market is going to advance over time. american businesses are going to be be worth more money. dollars will be worth less. so that money won’t buy you quite as much. but you’re going to be a lot better off owning productive assets over the next 50 years than you will be owning pieces of paper or, i might throw in, bitcoins. i’ve been meaning to ask your

Warren Buffett CNBC Interview

Warren Buffett, Berkshire Hathaway chairman & CEO, discusses how he came to add Tracy Britt Cool, financial assistant to Warren Buffett; Todd Combs, Berkshire Hathaway investment manager, and Ted Weschler, Berkshire Hathaway investment manager, to his team.

Warren Buffett CNBC Interview

Warren Buffett CNBC Interview

Warren Buffett, Berkshire Hathaway chairman & CEO, discusses how he came to add Tracy Britt Cool, financial assistant to Warren Buffett; Todd Combs, Berkshire Hathaway investment manager, and Ted Weschler, Berkshire Hathaway investment manager, to his team.

Warren Buffett CNBC Interview

Warren Buffett CNBC Interview

Warren Buffett, Berkshire Hathaway chairman & CEO, shares his thoughts on the strength of the U.S. economy and Federal Reserve policy. Buffett also weighs in on the outlook on pensions.

Warren Buffett CNBC Interview

Warren Buffett CNBC Interview

Warren Buffett CNBC Interview

no, no, the successors will be from the company. all the candidates have been over the years. the successor will come from inside berkshire. we have so many businesses we have a shot at evaluating a lot of talent. there is a lot of talent there. and some of them would have the talent to run the place overall. others wouldn’t. they’re more specialists in their own business. but particularly then when combined with todd and ted who bring an investment perspective, which is useful in acquisitions, analyzing acquisitions. i think we’re as well equipped for the next century as anybody. you mention both todd and ted. i assume you look at the potential cio part of your job, that someone could take on as a handler. those two could. there could be a third person but i’m not looking for one. as ceo, would it be a woman. not at present. none of the candidates, no. the top candidates now are men. and those candidates, has that been a list that’s changed over the last year? doesn’t change very much. it’s very slow to change. they shouldn’t be on the list if it’s quite changeable.

Warren Buffett CNBC Interview

Ted Weschler, Berkshire Hathaway investment manager, explains why he is comfortable placing DaVita HealthCare in the Berkshire Hathaway portfolio.

Warren Buffett CNBC Interview

Warren Buffett CNBC Interview

Tracy Britt, financial assistant to Warren Buffett; Todd Combs, Berkshire Hathaway investment manager, and Ted Weschler, Berkshire Hathaway investment manager, discuss how they found their way to Berkshire Hathway and came to work for Warren Buffett.

Warren Buffett CNBC Interview

Warren Buffett CNBC Interview

Warren Buffett, Berkshire Hathaway chairman & CEO, shares his thoughts on activist investors and whether they are acting in the best interest of the company and shareholders. Buffett weighs in on splitting up PepsiCo.

Warren Buffett CNBC Interview

Warren Buffett CNBC Interview

Warren Buffett, Berkshire Hathaway chairman & CEO, shares his thoughts on Business Wire selling access to high-frequency trading firms; the next likely billionaire to top the Forbes list, climate change and his selection of top business leader in the past 25 years.

Warren Buffett CNBC Interview

Warren Buffett CNBC Interview

it’s important to realize, though, businesswire sells thousands — sells to thousands of people and it’s simultaneous. no high frequently trader getting information a thousandth of a second of when we found that out, we cut them off anyway. they were getting simultaneous delivery not early delivery. if they could getsimultaneous delivery as wire service, anybody with wireservice would have a slower greatway by a fraction of a second.another question came in from our robert frank, one of thereports at cnbc, and he covers wealthy. right. brings up the question, you and gates number one and two at top of the forbes u.s. bill airs list for years now. what year do you think willbreak the duopoly at the top? who will it most likely be? i can’t tell you who’s three, four, five. i’m giving away stock, they’ll give away a lot in the past and more in the future. it will be — possibly somebody who isn’t giving away as much. but i don’t know who that will be. joe has a question. just a quick one.one more time to, you know, if anyone would see effect ofclimate change i would think berkshire would, in terms ofbecause we’ve built out the population so much bigger and webuilt in areas where you know, years ago, maybe you wouldn’thave see property casualties claims and now it seems likeyou’d see them. are you surprised you haven’t seen an effect, and would you be absolutely shocked if they have to pare back climate sensitivity mods to co2? are you a firm believer thatyou’re going to see events in the future? what i think, i am nophysicist, joe, so i — all i’m doing is read what other people say.climate scientists aren’t physicists either, one thing we know for sure. but i think — i think it’s — is it the kind of question that deserves lots of attention, in terms of insurance business, it has no effect in terms of the prices we’re charging this year versus five years ago and i don’t think it will have any feick on three years or five years from now. we have one planet and we ought to pay a lot of attention to what happens going on. i agree. i agree. better make sure that we’re focusing on the right things, though, in terms of keeping the planet livable, i agree whole heartedly. thanks, warren. any one that we don’t have on our list of 25, outliers that you think we should have that revolutionize business and just the world that you have probably seen that list you’re on. i’m sure you’re going to bethere as a graham and dodd

Warren Buffett CNBC Interview

Warren Buffett CNBC Interview 3/3/2014 [VIDEO]
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