Investing Warren Buffett Watch

  Monday, 27 Feb 2017 | 7:01 AM ET

Warren Buffett: I like airlines because they just 'got a bad century out of the way'

Posted ByFred Imbert

These aren't last century's airline companies, and that's why legendary investor Warren Buffett is spending money on them.

"It's true that the airlines had a bad 20th century. They're like the Chicago Cubs. And they got that bad century out of the way, I hope," Buffett said Monday on CNBC's "Squawk Box." "The hope is they will keep orders in reasonable relationship to potential demand."

Buffett's Berkshire Hathaway revealed late last year in an SEC filing it had taken a stake in American Airlines, United Continental Holdings and Delta Air Lines. CNBC also reported that Berkshire had taken another stake in Southwest Airlines.

Ironically, Buffett implied he had not taken a commercial flight in several years. "We'll save that (conversation) for after the show," he said.

The Oracle of Omaha also revealed why his holding firm previously hesitated to take significant positions in the industry.

"I think there have been almost 100 airline bankruptcies. I mean, that is a lot," he said. "It's been a disaster for capital."

Southwest's stock has outperformed Delta, United and American shares since Berkshire's stakes were revealed, rising nearly 30 percent.

UAL, LUV, AAL and DAL since Nov. 14

Source: FactSet

Buffett, chairman and CEO of Berkshire Hathaway, joined "Squawk Box" to talk about a range of topics including his latest investments, the stock market and the economy, and the presidency of Donald Trump.

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  Monday, 27 Feb 2017 | 6:56 AM ET

Warren Buffett loaded up on Apple stock right before it hit a new high this year

Berkshire Hathaway chiefWarren Buffett said Monday he doesn't personally own an iPhone but he more than doubled his holdings in Apple in January.

After Jan. 1 and before Apple reported earnings on Jan. 31, Buffett's Berkshire Hathaway also bought 120 million Apple shares. Asked why, he said, "Because I liked it!"

The purchases that Buffett revealed on Monday give Berkshire Hathaway about 2.5 percent outstanding Apple shares. It also makes Apple one of Buffett's company's largest holdings, second only to Coca-Cola.

At this point, Buffett owns $17 billion worth of the tech giant's stock. The legendary investor said he upped his stake because of the consumer-retaining power of Apple and CEO Tim Cook's smart capital deployment strategy.

"Apple strikes me as having quite a sticky product, and an enormously useful product to people that use it," Buffett told CNBC.

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  Monday, 27 Feb 2017 | 6:51 AM ET

US stock market is not in bubble territory, billionaire investor Warren Buffett says

Billionaire investor Warren Buffett told CNBC on Monday U.S. stock prices are "on the cheap side" with interest rates at current levels.

The chairman and CEO of Berkshire Hathaway said he put $20 billion into the market since just before the presidential election.

That reflects purchases beyond the most recent reporting period ending Dec. 31.

Buffett also said he's more than doubled his stake in Apple since the new year and before the tech giant reported earnings on Jan. 31.

"We are not in a bubble territory" in the stock market, he said on "Squawk Box." If rates were to spike, however, then the stock market would be more expensive, he added.

After Friday's late comeback, the Dow Jones industrial average ahead of Monday trading was riding an 11-day win streak for the first time since 1992, with 11 record closes in a row for the first time since 1987.

Investors would be very sorry they didn't buy stocks if the 10 year Treasury yield were to stay at around the current 2.3 percent for the next decade, Buffett said. "If interest rates were 7 or 8 percent, then these [stock] prices would look exceptionally high."

The dynamism of the U.S. economy is "unbelievable," he argued, adding there will be ups and downs in growth but "the U.S. always comes back and wins."

Buffett released his closely-watched annual letter on Saturday, writing the U.S. economy would continue its "miraculous" boom.

"The best thing with stocks is to buy them consistently over time," he said, adding investors should spread the risk by owning a diversified set of companies.

"You'd be making a terrible mistake if you stay out of a game you think is going to be very over time because you think you can pick a better time to enter," he argued.

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  Monday, 27 Feb 2017 | 10:05 AM ET

Warren Buffett will give $1 million a year for life to any employee who gets NCAA Sweet 16 right

Posted ByFred Imbert

March may be the best month to work at Warren Buffett's Berkshire Hathaway, especially for college basketball fans.

In an interview Monday with CNBC's "Squawk Box," Buffett said his company will give $1 million a year for life to any employee who guesses which teams will play in the NCAA men's basketball tournament's round of 16, or "Sweet 16."

"We also have a prize of $100,000 for whoever goes the furthest," Buffett said. "Last year, we had two fellows that tied. One of them knew a lot about basketball; the other didn't know anything about basketball, but they each got $50,000 out of it."

Buffett also said he expects more than 100,000 contest entries, topping last year's more than 85,000.

The tournament starts March 14 and concludes April 3.

Buffett has been a long-time basketball fan. In 2014, Berkshire insured privately-held Quicken Loans' contest offering $1 billion for the perfect March Madness bracket, the odds of which were 1 in 9.2 quintillion.

Buffett, chairman and CEO of Berkshire Hathaway, talked about a range of topics including his latest investments, the stock market and the economy, and the presidency of Donald Trump.

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  Thursday, 22 Sep 2016 | 5:00 AM ET

Here are the 5 best investing tips Warren Buffett told CNBC over the years

Posted ByJohn Melloy

(This video is a CNBC PRO free preview. Click here to subscribe).

CNBC PRO opened up the CNBC vault and reviewed all the interviews Warren Buffett gave the network over the years. These are the five best evergreen investing tips the Oracle of Omaha doled out during those talks with Becky Quick.

As you'll see in the video, Buffett returned to these five themes (advice like "always invest in productive assets") multiple times over the years, so we think these are some of the legend's most steadfast beliefs.

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  Tuesday, 30 Aug 2016 | 8:37 AM ET

Happy birthday, Warren Buffett! Here's another $2 million

Warren Buffett eats a Dairy Queen ice cream bar prior to the Berkshire Hathaway annual meeting in Omaha, Nebraska.
Daniel Acker | Bloomberg | Getty Images
Warren Buffett eats a Dairy Queen ice cream bar prior to the Berkshire Hathaway annual meeting in Omaha, Nebraska.

Warren Buffett turned 86 on Tuesday. At an estimated wealth of about $61 billion, he's averaged earning about $1.94 million per day for every day of his life.

Of course we know that's not totally an accurate picture, because he made a lot more in the second half of his life than in the first half. But as a way of comparing age and wealth, that $1.94 million is a number to put in perspective.

Based on that ratio, he'd be ranked seventh on the billionaires list.

Topping it would be Mark Zuckerberg and Bill Gates, the only two people who've averaged over $3 million per day. Many other famous tech giants crack the elite cutoff level of $1.5 million per day. They include Amazon's Jeff Bezos, Oracle's Larry Ellison, and the "Google Guys," Larry Page and Sergey Brin.

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  Monday, 15 Aug 2016 | 4:44 PM ET

Warren Buffett's Berkshire Hathaway raises stake in Apple by 55 pct

Posted ByFred Imbert

Berkshire Hathaway has added a large chunk of Apple stock to its portfolio.

The multi-billion-dollar conglomerate, which is run by legendary investor Warren Buffett, increased its stake in Apple by 55 percent as of June 30. Apple's stock has been on a tear lately, rising about 21 percent over the past three months.

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  Thursday, 11 Aug 2016 | 4:49 PM ET

The 2 things that make the economy better, according to Warren Buffett

Warren Buffett
Paul Morigi | Fortune | Time Inc | Getty Images
Warren Buffett

Innovation and productivity are the two things that will improve the economy, businessman Warren Buffett told Politico in an article published Thursday.

"Productivity — that's the way the human race improves," Buffett said to Politico's Daniel Lippman and Jake Sherman.

Buffett homed in on the intersection between productivity and technology, or anything that improves "what people want to do with the 24 hours in the day," from innovation at the dentist's office to the assembly line to the farm, Politico reported.

The "staggering" pace of real output that's happened in America may have set expectations a little high for real GDP growth, Buffett said. At 2 percent, GDP growth "doesn't match our best years, but it's pretty damn good," he said in Politico's article.

Buffett's comments come as U.S. nonfarm productivity fell unexpectedly for the third consecutive quarter, according to a separate report on Tuesday. It marked the fastest pace of decline in three years.

For the complete story, including Buffett's take on how America "learned to unleash human potential," see the article at Politico.com.

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  Thursday, 4 Aug 2016 | 10:11 AM ET

If you follow Warren Buffett’s methodology, stocks are significantly overvalued

Posted ByBrian Kelly
Warren Buffett
Adam Jeffery | CNBC
Warren Buffett

When I turned bearish in January 2016 I missed three critical elements that caused the S&P 500 to grind toward record highs. First, a sufficient number of other investors did not share my skepticism about the global economy. Second, I misjudged investor faith in central bankers. Third, I underestimated the continued global appetite for yield bearing stocks. However, in recent days a host of big money investors have been vocally bearish. Does this mean the herd is turning and that I may have just been early? Perhaps, but what are these investors seeing that has led them to embrace my skepticism? Risk versus reward.

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  Tuesday, 2 Aug 2016 | 10:47 AM ET

Trump fires back at the Oracle: 'I don't care much about Warren Buffett'

Donald Trump brushed off criticism from billionaire Warren Buffett, telling Fox Business on Tuesday "I don't care much about" the Oracle of Omaha.

The response came a day after Buffett — while campaigning alongside Hillary Clinton in his home state of Nebraska — challenged Trump to release his tax returns and slammed his business record.

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About Buffett Watch

  • Warren Buffett is arguably America’s most-admired and most-followed investor. Buffett is the largest shareholder and CEO of Berkshire Hathaway and one of the world’s most famous and most generous philanthropists. Legions of investors - from all walks of life - follow Buffett's homespun investment philosophy: invest in what you know, invest in value. Here on CNBC.com's Warren Buffett Watch, we’ll keep you up to date on what the “Oracle of Omaha” is doing by following Buffett's trades, words and deeds.