Warren Buffett: Why he likes down days

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Published on Feb 8, 2016
Tuesday, 8 Sep 2015 | 2:07 PM ET

CNBC's Becky Quick discusses her conversation with Berkshire Hathaway CEO Warren Buffett, who covered everything from markets to Republican Presidential Candidate Donald Trump.

0:00you know one of the things we got the opportunity to talk about with warren
0:02buffett today is just the market volatility that we've been seeing over
0:05these last few weeks you will just showed a clip from Lee cooperman you
0:08talked about how he's been buying is fully invested but he also admitted on
0:11Squawk Box this morning that these massive moves that we've seen some of
0:15the big down moves unnerved even a seasoned investor like him so we talked
0:20about that a little bit about that today and he said he's actually a fan of those
0:23big down days because it gives him the opportunity to buy more of what he likes
0:27any way you can get a 10% discount well all the better now but what does he like
0:31these days world one of those IBM Brian may remember this but just about a month
0:35ago on Squawk Box we got the chance to talk to Warren Buffett about what he
0:39liked at that moment and while he didn't say if you certainly hinted that he had
0:42been buying shares of IBM in the second quarter all of a sudden fast forward
0:46about a week after that when we got some of those filings the SEC filings it
0:50turned out he had not been by a minute left some of us scratching our head
0:54while today he cleared up the mystery that because I thought I would buy get a
1:01quarter we bought in the first quarter and normally I would tell you that's but
1:06we bought something the third quarter I I actually thought they were purchases
1:10in the second what I would do said that most I thought that the number was gonna
1:12be a little bit higher but I was wrong so I have to tell you that we have
1:17brought along with the third quarter and we did by the first quarter's well we
1:23also got the chance to talk to mister bobbitt today about what he thinks about
1:26with the economy because certainly the numbers that we've been getting economic
1:29numbers over the last week or so have been incredibly strong numbers you look
1:33at that very strong jobs report with the unemployment rate all the way down to
1:375.1% you start thinking about what we've seen with some of the automobile sales
1:41at record levels once again and asked him what he thought about the economy
1:45now he he says despite some of those recent numbers he thinks that the
1:48economy is really still kind of chugging along at that same two to two and a half
1:52percent that we've seen over the last five or six years he says he's a little
1:56less impressed with some of these Mar more recent numbers and he said that a
1:59week by week or month by month Areva quarter by quarter basis sometimes you
2:02get distortions he looks at things more year over year basis and that's where
2:07it doesn't look quite as impressive however he did say that would come to
2:10the federal reserve those numbers that we've seen recently certainly will make
2:14their job tougher next week probably well I don't know I mean but like I say
2:23if if I break Scott substantially higher than Europe's I would not think that
2:29would necessarily be good for our exports for this country I mean an
2:33economic you can never just do one thing there's always and then what
2:38and I think and the and then what a moving rates up substantially while
2:42Europe's tried to keep them very well could have some consequences down the
2:47line
2:47those consequences are something that fits concerned about but also many of
2:52the other big investors we talked with infectiously cooperman this morning and
2:56Mario gabelli also pointing out that one of the huge unknowns and the real wild
3:00cards the Fed has to be the stronger dollar if you just look at the economy
3:03may be worth raising but they all point out that with a stronger dollar it
3:07definitely puts the united states and disadvantage in terms of its exports
3:11Brian Austin back over to you you know Becky couple things I mean awesome stuff
3:15as always but I'm really glad that you brought up that IBM stuff because I was
3:19filling in on Squawk Box today and when you ask him about IBM and he said yeah I
3:23love it I love it we we all kind of like this like he's buying and then the 13 F
3:28came out like he's not buying what the heck so is awesome to clear why we were
3:34both shaking our heads about that I thought Matt and maybe I'm losing my
3:37touch of it is not recognizing what was there to know that he just got confused
3:41all units feature to touch is only getting better Becky awesome stuff is
3:46always appreciate that