When: Today, Monday, May 6, 2013
Where: CNBC's "Squawk Box"
Following are excerpts from the unofficial transcript of a CNBC interview with billionaire investor Warren Buffett today on CNBC's "Squawk Box" (6-9AM ET). For more on Buffett's interview, including embeddable videos visit buffettwatch.cnbc.com.
BUFFETT ON JPMORGAN
BUFFETT ON ECONOMY
BUFFETT ON EUROPE
BUFFETT ON STOCKS VS. BONDS
QUICK: So you agree with him on that point?
BUFFETT: Oh it's going to happen. The question is always when – I'm no good on that. The question is to what degree it happens. You could have interest rates very significantly different than what they are now in some reasonable period in the future. It's not a game that I can play. I mean, I don't have any special insight into that sort of thing other than that it will happen. In terms of stocks, stocks are reasonably priced – they were very cheap a few years ago – they are reasonably priced now. But stocks grow in value over time because they retain earnings and they expand basically the companies underneath you. So I like owning stocks. I do not like owning bonds now. There could be conditions under which we would own bonds, but they are conditions far different than what exists now.
BUFFETT ON INVESTING IN BONDS
QUICK: So now, this is not just your lifelong look on it. This is particularly to--
BUFFETT: Oh, it's now. No, I bought bonds back in the early '80s. We bought-- we made a lot of money and we bought zero coupon bonds-- I bought them personally. And-- no, the price of everything determines its attractiveness. And when the price of stocks was way down a few years ago. The news was terrible, but the stocks were cheap, you know. News is better now. Stocks are higher. They're still not-- they're not ridiculously high at all, and bonds are priced artificially by some guy buying $85 billion a month. And that will change at some point. And when it changes, people can lose a lot of money if they're in long-term bonds.
BUFFETT ON CHASING YIELD
BUFFETT ON U.S. BEING ENERGY EXPORTER
BUFFETT ON JCPENNEY
QUICK: You would like to see them succeed, do you think they're going to?
BUFFETT: I think it's very tough. I mean, they obviously alienated a significant part of their customer base in the last 18 months or whatever it's been. And retailing it's a tough game.
BUFFETT ON HIGH SPEED TRADING
BUFFETT: I agree. I agree. I mean, that's why these fellas exist and why they spend enormous sums on trying to get the speed of transmission, you know, that's a millionth of a second or a thousandth of a second faster than the other guy. I mean, you know, and it is not contributing anything to capitalism.
BUFFETT ON FLASH CRASH
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