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Buffett, Dimon On CNBC Special 6/7/18: Healthcare, “Quarterly Capitalism”, Rate Poison Cryptos, Uber, Tariffs And Much More

Warren Buffett And Jamie Dimon on CNBC June 7th 2018 on healthcare, tariffs, bitcoin, long term investing, corporate governance and more. See all the video clips linked and embedded below

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Q1 hedge fund letters, conference, scoops etc, Also read Lear Capital: Financial Products You Should Avoid?

Warren Buffett And Jamie Dimon

Berkshire expert, Dr. David Kass of UMD opined

Warren Buffett and Jamie Dimon were interviewed on CNBC on June 7.  The three highlights were:

(1) Public companies should eliminate the practice of estimating quarterly earnings. They have also published an op-ed in today’s Wall Street Journal.

(2) Buffett and Dimon are very optimistic about the economy. Dimon: “We are in the sixth inning of the recovery.”  Buffett: ‘If we are in the sixth inning, we have our sluggers coming to bat’

(3) “We have found the right CEO” for joint effort by Buffett, Dimon and Bezos to contain health costs at their companies. An announcement will be made about the new CEO within two weeks.


More from CNBC below

Warren Buffett and Jamie Dimon on the US economy

Berkshire Hathaway CEO Warren Buffett and J.P. Morgan chief executive Jamie Dimon share their thoughts on the health of the U.S. economy, markets and the future of the euro.

Warren Buffett and Jamie Dimon on the US economy from CNBC.

Transcript

Consumers are in very good shape. Their balance sheet their incomes wages are going up their debt levels are low. All the credit ridden since the Great Recession is pristine mortgage credit. Other than to lend which is done by the government. But it's more credit small business credit large corporate credit business sentiment is almost the highest level has ever been consumer centered at the highest levels. Markets Wide Open housing is in short supply. And my guess is mortgage credit will expand a little bit now going back to subprime. So it looks pretty good. And the way I look at it there is nothing that is a real pothole there with know the leverage we had in 2007. So it may be well it's been a nine year recovery. It's been only 20 percent an average recovery would have been like 40 percent growth over like a seven rate year period. So the slack is being pulled up and it may very well be just a very long kind of late cycle. You know sentiment grows recovery from the Great Recession that you may have you may very well have years of growth and I hate to forecast the future. I don't know but it seems to me that that's a logical possibility. And in fact I think growth is getting stronger today not weaker. If we are nine years into this recovery we're only in the sixth inning I I'm just doing the math on that you're talking about another three years of recovery is that something that you say yes it's not out of the realm of the possible.

It's roughly in the realm of the possible and you know of course will wall climb the wall of worry if it gets longer longer. Of course one day we'll have a recession. Like I said I don't like to predict that I don't. The fact is things look pretty good. And also we have also additional stimulus coming from know tax reform and other budget issues so I think yes you can have growth and it's people don't want to see it. It's been a long time so it's almost like we're too afraid to say it out loud. And how about today what's the economy look like from where you said. Well right now there's no question that it's feeling strong. I made it four and six extending. We have our we have our slugger's coming to that right now. Number three four and five in the lineup. Business is good. I'm I'm no good at taking out doors three or five years from now although I will say this. There's no question in my mind that America is going to be far ahead of where we are now 10 20 and 30 years from now. But right now business is good there's no question about it. And as a result you think the stock market looks affordable. Well it's not as bad as all that the decision on the stock market should be made independent of the current business outlook. That when you should buy stocks is when you think you're getting a lot for your money. Not when you think businesses and that's it and not necessarily when you think business is going to be good next year.

The Zonta buy stocks in the market generally it has been always with a few exceptions because the long term outlook is exceptionally good and I don't think you should buy stocks based on what you think the next six months or years are going to bring. You had been buying stocks pretty actively in the first quarter. Fair to say that you still are buying stocks. I I like buying stocks. Yeah I'm a buyer and I've been that all my life you know I bought my first stock on March 11th of 1942 and we've had seven Republican presidents and seven Democratic presidents and I've bought stock under every one of them. Jamie let me ask you. The market wobbled a bit last week because of the issues with the Italian politics real concerns about what people are calling quarterly or Italy Italy's. How big of a problem do you think that that is and is it something that potentially we could face some contagion over here. So one of the requirements the viewers that were speaking about this thing about the long term trends. Obviously we've had problems. It's amazing the country is the ability this country to continue to grow. And even the worst 10 to 20 year period we've used in rather well. And Bill Gates talks about a book called tactfulness out there. Steven Pinker about the better angels of nature mankind's being better and better and stronger and stronger healthier and healthier living longer and that is reflected in your markets and valuation and things like that. Obviously there's always something go wrong. The biggest threat to mankind is nuclear. No nothing other than nuclear proliferation things like that.

And then you have things like Italy is one of those things remind you that there is risk out there and you're always going to have that you can open up the newspaper any day and you'll be reminded of another risk that might be Argentina. Do I think that president is doing great things there. And so just remind us that it's not resolved the eurozone will have some issues. And you showed this wobble because people question again all of sudden you know Italy's day in the eurozone which obviously I hope they do the monetary union is the most important thing. They hope that they do and I do expect they will be very hard for them to leave because I do expect that the euro will still be here in five years and in ten years the I'm going to say again I hate to predict the future I say yes exiting the euro the monetary union will be catastrophic for anyone who exits and there is no way out of the ash. And so I think that when people see that they don't want to do it I think the EU is making with Merkel and McCrone who are the lynchpins remember Britain was never part of the monetary union and if they continue make proper reforms yes it can be a union of the strengthened over time. But it takes exactly what they're talking about. It takes fiscal reform the ability for the banks to do pan-European banking.

You know some regulatory reform and certainty some common now they have to deal with certain issues in how they deal with the budget issues among the countries but it's in everyone's interest that the European Union continue on that path because the other path is really not a good one. If you had to pick a side if you were forced to take a bet on this would you bet that the euro is here in 10 years. I would bet it. But I say that I don't consider myself an expert on it by any means but sure I'd bet on it. And I would point out one thing and was just doing a little mental calculation when you were talking and I've been I've been investing over a period of probably over 25000 days. And I would say if you took the headlines from the paper of those 25000 days I'll bet a majority of those headlines they certainly wouldn't be good news or optimistic. I made that. You know you can start with 1942 when we were losing the war when I was made the first investment. So the the news is usually well it's more often I think the headlines are bad than good. But but the Dow was 101 at that time and the Dow as you know whatever it is now 25000 so America works but the headlines are frequently going to be kind of alarmist.

Does guidance matter? CEOs are at the mercy of their spreadsheets anyway, says Cramer

CNBC's Jim Cramer talks about his interview with Qualcomm CEO Steve Mollenkopf, and weighs in on Warren Buffett and Jamie Dimon's comments on 'short-termism."

Does guidance matter? CEOs are at the mercy of their spreadsheets anyway, says Cramer from CNBC.

Warren Buffett: Business should be a handmaiden of government

Warren Buffett and Jamie Dimon weigh in on the role of business leaders and politics.

Warren Buffett: Business should be a handmaiden of government from CNBC.

Warren Buffett: CEO in-place for our health-care initiative

Berkshire Hathaway CEO Warren Buffett and J.P. Morgan chief executive Jamie Dimon talk about their health-care initiative with Jeff Bezos' Amazon.

Warren Buffett: CEO in-place for our health-care initiative from CNBC.

Quarterly guidance can 'feed on itself', says Warren Buffett

Berkshire Hathaway CEO Warren Buffett and J.P. Morgan chief executive Jamie Dimon team up to call for the end to quarterly earnings guidance by companies.

Quarterly guidance can 'feed on itself', says Warren Buffett from CNBC.

Buffett: When companies live by the numbers, they do things counter to long-term interests

Berkshire Hathaway CEO Warren Buffett and J.P. Morgan chief executive Jamie Dimon discuss how short-termism is harming U.S. companies and the economy.

Buffett: When companies live by the numbers, they do things counter to long-term interests from CNBC.

Tariffs could produce negative outcomes, says Jamie Dimon

J.P. Morgan chief executive Jamie Dimon discuss the recent dip in CEO sentiment and U.S. trade policy.

Tariffs could produce negative outcomes, says Jamie Dimon from CNBC.

Don't hurt your company with short term views, says Jamie Dimon

Berkshire Hathaway CEO Warren Buffett and J.P. Morgan chief executive Jamie Dimon talks about encouraging companies to take a longer view of company goals.

Don't hurt your company with short term views, says Jamie Dimon from CNBC.

Warren Buffett on investment talks with Uber

Berkshire Hathaway CEO Warren Buffett weigh in on ride-sharing company, Uber.

Warren Buffett on investment talks with Uber from CNBC.

Bitcoin buyers 'beware,' says Jamie Dimon

Berkshire Hathaway CEO Warren Buffett and J.P. Morgan chief executive Jamie Dimon weigh in on cryptocurrencies.

Bitcoin buyers 'beware,' says Jamie Dimon from CNBC.

Katz: Reporting quarterly earnings are a necessary evil for public companies

David Katz of Matrix Asset Advisors disagrees with the call by Warren Buffett and Jamie Dimon that quarterly earnings and profit forecasts are harming the economy.

Katz: Reporting quarterly earnings are a necessary evil for public companies from CNBC.

We want wages to go up, says Jamie Dimon

Berkshire Hathaway CEO Warren Buffett and J.P. Morgan chief executive Jamie Dimon share their thoughts on the jobs market, hiring and increasing wages.

We want wages to go up, says Jamie Dimon from CNBC.

Buffett and Dimon call for CEOs to end quarterly profit forecast

Berkshire Hathaway CEO Warren Buffett and J.P. Morgan chief executive Jamie Dimon team up to call for the end to quarterly earnings guidance by companies.

Buffett and Dimon call for CEOs to end quarterly profit forecast from CNBC.