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Investing Warren Buffett Watch

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  Thursday, 9 Apr 2015 | 6:53 PM ET

Why Warren Buffett is wrong on car-dealer model

Posted By: Daron Gifford, consultant at Plante Moran

Warren Buffett recently said he thinks the car-dealership franchise model isn't going to change. I wouldn't be so sure.

At the NADA/J.D. Power Automotive Forum in New York recently, Buffett said, "When a distribution system [car dealers] becomes that firmly established, there's a reason for it."

But, of course, everything changes. We have seen entire established industries collapse given the technologies that are available to us today.

»Read more
  Monday, 6 Apr 2015 | 6:29 PM ET

Cramer’s top 5 Buffett-blessed dividend stocks

Posted By: Abigail Stevenson

As the market enters an environment of uncertainty in the second quarter, Jim Cramer thought it was time to dig into his bag of tricks on the best way to fight a slowdown.

What is one thing he knows about slowdowns? Stocks with dividends tend to outperform.

This is because if when the economy slows down, most investors assume there will be lower interest rates, which means stocks with higher dividends face less competition from the bond market.

Now this doesn't mean that Cramer thinks investors should just jump on board with any stock out there with a good dividend. Instead, the "Mad Money" host took a cue from the Oracle of Omaha himself to help navigate the market of uncertainty.





»Read more
  Tuesday, 31 Mar 2015 | 3:04 PM ET

Buffett: Tesla doesn't threaten me

Posted By: Everett Rosenfeld

Warren Buffett's new auto dealership business isn't under any threat from Elon Musk or his Tesla distribution model, the billionaire said Tuesday.

Speaking to CNBC at a forum hosted by the National Automobile Dealers Association, J.D. Power and the New York International Auto Show, Buffett said he did not anticipate much of a threat from the electric car company's direct-to-consumer model because of Tesla's relatively small market.

»Read more
  Wednesday, 25 Mar 2015 | 1:28 PM ET

Kraft-Heinz cost-cutting impact will be limited

Posted By: John W. Schoen
Packages of Kraft Foods' Singles cheese slices are displayed at a supermarket in New York.
Scott Eells | Bloomberg | Getty Images
Packages of Kraft Foods' Singles cheese slices are displayed at a supermarket in New York.

Private equity firm 3G Capital, the Brazilian-based backer of the Kraft-Heinz merger announced Wednesday, instills fear in the companies it acquires with its reputation for fierce cost-cutting.

But while the acquirers have already promised to reduce costs by as much as $1.5 billion, the local economic impact may not warrant such anxiety.

»Read more
  Wednesday, 25 Mar 2015 | 12:39 PM ET

Buffett bonanza? Heinz and Kraft to merge

Posted By: Tom DiChristopher

Kraft Foods Group stock surged Wednesday after the company announced a merger deal with H.J. Heinz financed in part by Warren Buffett.

Buffett told CNBC that his Berkshire Hathaway company will have $9.5 billion worth of common stock in the newly merged H.J. Heinz-Kraft Foods company. It will be headed by Heinz Chief Executive Bernardo Hees.

»Read more
  Wednesday, 25 Mar 2015 | 9:44 AM ET

We have about $9.5B in the new Kraft-Heinz: Buffett

Warren Buffett said Wednesday that Berkshire Hathaway will have about $9.5 billion worth of common stock in the newly merged H.J. Heinz-Kraft Foods company.

The deal to create the third-largest food and beverage company in the North America—announced hours before Buffett's interview on CNBC's "Squawk Box"—was in the works for about four weeks, the billionaire investor said.

"It moved along quite promptly," he said, but stressed he's in it for the long haul.

»Read more
  Wednesday, 25 Mar 2015 | 11:21 AM ET

Warren Buffett uses 'Civil War' analogy on the euro

Billionaire investor Warren Buffett said Wednesday the "odds are good" the euro will continue to exist, but it may need to be tweaked.

"I've always felt that the present arrangement with the euro would not stand the test of time in the sense that it would have to be modified," the Berkshire Hathaway chief told CNBC's "Squawk Box" in an interview that largely focused on his role in the Heinz-Kraft Foods merger.

Read MoreWe have about $9.5B in the new Kraft-Heinz: Buffett

On the euro, Buffett said, "You harmonized the currency without harmonizing a whole lot of other things that have big effects on the currency." He argued one can't work without other, "sort of like in the Civil War, saying we can't exist half-slave, half-free."

"The Greek situation may illustrate the kind of adjustments that are needed," Buffett added.

After talks with European leaders, including German Chancellor Angela Merkel, in the past week, the leftist government in Greece said it will present a package of reforms to its euro zone partners by Monday in the hope of unlocking aid and avoiding a messy default.

Read More'End of the road' for Greece as cash runs out?

»Read more
  Wednesday, 11 Mar 2015 | 8:00 AM ET

Why Warren Buffett's son isn't the heir apparent

Posted By: Lawrence A. Cunningham, author of "Berkshire Beyond Buffett: The Enduring Value of Values" and professor, George Washington University

Gen. Douglas MacArthur's son, Arthur, escaped the towering shadow of his heroic dad only by changing his name and living as a recluse for most of his life. Bill Gates Jr., son of a renowned lawyer whose name graces a top global firm, eschewed the bookish discipline of law and dropped out of college to forge his own spectacular path in computer software and, lately, philanthropy. Winston Churchill's son might have been better off had he never run for public office. Greg Norman Jr.'s golf game may be better than average, but even impressive performance matters little when the frame of reference is his championship father.

The children of legends who carve out their own niche offer a broad model and lesson: Find your own strengths and play to them rather than try to measure up to those of your parents'. The succession challenge may be greatest in the context of a family business, as several generations of DuPonts or Pritzkers might attest.

»Read more
  Monday, 2 Mar 2015 | 6:07 AM ET

Buffett: Greece shows weakness of 'shared currency'

Posted By: Tom DiChristopher

(Click here to read the live blog on mobile devices)

This is a breaking news story. Please check back for updates.

Berkshire Hathaway increased its net worth by $18.3 billion last year, the company said in its 50th annual letter on Saturday, with a "good year" marred in part by underperformance at its Santa Fe railroad unit.

The Omaha, Nebraska based conglomerate run by billionaire Warren Buffett also dropped a big hint that the era of its larger-than-life CEO was nearing a close.

»Read more
  Monday, 2 Mar 2015 | 7:26 AM ET

Why Buffett is sticking with IBM

Posted By: Fred Imbert

Here's Warren Buffett's main reason for sticking with IBM: "Because I like it."

Read MoreBuffett live blog

"It's kind of been doing exactly what I like ever since we started buying it," Buffett told CNBC's "Squawk Box" on Monday. "People have this misconception that—when we buy a stock—we want it to go up. That'st the last thing we want it to do."

The Oracle of Omaha held a 7.79-percent stake in IBM as of Dec. 31, a stake that has cost him billions in paper losses. The company's 3.6 percent drop on Jan. 21 cost Buffett almost $400 million. Buffett also lost nearly $1 billion on Oct. 20, because of IBM, following a weak earnings report.

"There have been no surprises at IBM since we started buying it a few years ago," Buffett said. "We expected revenue to come down. We expected a year like this where foreign exchange would take a whack off revenues."

Read MoreBerkshire sees BNSF drag, hints at successor

IBM on Jan. 20 reported fourth-quarter earnings of $5.81 a share, down from $6.13 a share a year earlier. Revenue decreased to $24.11 billion from $27.70 billion.

»Read more

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.

 

  • Senior Coordinating Producer

  • Warren Buffett is the chairman, CEO and largest shareholder of Berkshire Hathaway