Investing Warren Buffett Watch


  Monday, 2 May 2016 | 8:46 AM ET

Buffett says if the government did THIS the Dow could hit 100K

Billionaire investor Warren Buffett told CNBC on Monday just how important interest rates are to stock investing.

"If the government absolutely said interest rates are going to be zero for 50 years, the Dow would be at 100,000," Buffett told "Squawk Box," stressing he was speaking hypothetically. The Dow Jones industrial average closed at 17,773 on Friday.

In a CNBC interview last week, Buffett also spoke about interest rates. "If you had zero interest rates and you knew you were going to have them forever, stocks should sell at, you know, 100 times earnings or 200 times earnings," he said.

Consider this: Near zero percent rates from December 2008 to mid-December last year helped pushed the Dow up more than 100 percent. That happened as Wall Street was waiting for the penny to drop on a hike, which finally happened Dec. 15, 2015.

If zero rates were a certainty for 50 years, Buffett was basically saying stocks could make a move exponentially higher, when considering how far the Dow came in just seven years.

The chairman and CEO of Berkshire Hathaway was interviewed in Omaha, Nebraska, where he hosted the annual meeting of the company's shareholders on Saturday.

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  Monday, 2 May 2016 | 7:54 AM ET

Buffett to Trump: America is already greater than ever

In a veiled shot at GOP presidential front-runner Donald Trump, fellow billionaire Warren Buffett on Monday dismissed the real estate mogul's campaign slogan.

"There's no need to 'make America great again.' America is greater than it's ever been," Buffett said during a wide-ranging interview on CNBC's "Squawk Box." Buffett, a supporter of leading Democrat Hillary Clinton, said America is going to "become ever greater."

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  Monday, 2 May 2016 | 6:12 AM ET

Buffett: Money in the mattress if banks charge for deposits

With persistently low interest rates around the globe, billionaire investor Warren Buffett told CNBC on Monday he'd consider taking money out of banks, especially if negative interest rates result in customers being charged to park their money in accounts.

"There could be a point where you'd really want to start withdrawing currency," Buffett said in a wide-ranging "Squawk Box" interview from Omaha, Nebraska, after he hosted the annual meeting of Berkshire Hathaway shareholders on Saturday.

"If currency in a bank is worth less than currency in your hands ... that could produce something in the way of behavior," he said. "It's a different world. If you have a lot of money in euros, as we do ... you're better off putting it under your mattress than in a bank."

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  Monday, 2 May 2016 | 8:26 AM ET

Warren Buffett says he's in awe of Jeff Bezos' genius

Posted ByFred Imbert

Jeff Bezos has 'changed the world' in a big way: Buffett
Jeff Bezos has 'changed the world' in a big way: Buffett   

Amazon founder and CEO Jeff Bezos received high praise from another business titan on Monday: Warren Buffett.

"We haven't seen many businessmen like him," Berkshire Hathaway's chairman and CEO told CNBC's "Squawk Box." "Overwhelmingly, he's taken things you and I've been buying and he's figured out a way to make us happier buying those products, either by fast delivery or prices or whatever it may be, and that's remarkable."

Amazon has grown at an exponential rate since its foundation in 1997, and that's being reflected in its stock price. Since then, Amazon shares have grown nearly 44,000 percent.

Amazon in last 10 yearsSource: FactSet

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  Monday, 2 May 2016 | 6:42 AM ET

Warren Buffett: US quarterly GDP figures are inherently suspect

Posted ByFred Imbert

Buffett on jobs picutre, GDP and oil
Buffett on jobs picutre, GDP and oil   

Gross domestic product, one of the most important economic indicators, may not be too reliable in the near term, Warren Buffett said Monday.

"I think the [quarterly] GDP figures are inherently a little more suspect in terms of being precise, than year-over-year figures," Berkshire Hathaway's chairman and CEO told CNBC's "Squawk Box."

The U.S. economy grew at a dismal 0.5 percent rate in the first quarter, the Labor Department said Thursday.

"There's one little thing that many people don't understand about the GDP figures. Maybe I don't understand it, but my understanding is they're sequential figures. You take the figures from one quarter to another and multiply by four. So, if you're off by a tenth [of a percent] on the seasonal adjustment, that becomes a four-tenths figure," Buffett said. Still, he added, "that doesn't negate the fact that business is slow. It's not negative, but it's slow."

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  Monday, 2 May 2016 | 8:20 AM ET

Buffett: We've 'never sold a share of IBM' and might buy more

Billionaire investor Warren Buffett said Monday he's "never sold a share of IBM" even though his overall cost of owning the stock is about $25 per share higher than its current level.

The stock was at $145.94 in premarket trading Monday.

"We feel fine or we won't own it. We've never sold a share of IBM. Periodically. we buy a little bit more," Buffett told CNBC's "Squawk Box" in an interview from Omaha, Nebraska. "We have not been an aggressive buyer, but we've been a buyer."

Buffett-run Berkshire Hathaway owns a 8.51 percent stake in IBM. "I think I can safely say we would be much more likely to buy more in the next 12 or 24 months than we would be to sell shares."

Buffett hosted the annual meeting on Berkshire shareholders on Saturday in Omaha.

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  Monday, 2 May 2016 | 11:42 AM ET

Warren Buffett: Don't run a company like Michael Pearson ran Valeant

Posted ByFred Imbert
Warren Buffett
Adam Jeffery | CNBC
Warren Buffett

There are many ways to run a business, but don't run one like Valeant Pharmaceuticals under Michael Pearson's tenure, legendary investor Warren Buffett said Monday.

"I don't think you'd want your son to grow up and run a company in the manner that Valeant was run," Buffett, the chairman and CEO of Berkshire Hathaway, told CNBC's "Squawk Box."

Valeant has been under significant pressure from lawmakers and shareholders after the company hiked prices for certain drugs. On Sunday, The Wall Street Journal reported that Pearson was key in making those decisions. Valeant's board ousted Pearson in March. Last week, Valeant named Joseph Papa to succeed Pearson.

Valeant declined CNBC's request for comment. CNBC could not immediately locate Pearson for comment.

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  Monday, 2 May 2016 | 9:15 AM ET

Recap: Three hours with Warren Buffett

Follow our live blog below (app users, click here to follow in a browser):

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  Sunday, 1 May 2016 | 10:05 AM ET

Berkshire Hathaway's annual meeting: The highlights

Posted ByFred Imbert
Charlie Munger, left, and Warren Buffett
ChinaFotoPress | Getty Images
Charlie Munger, left, and Warren Buffett

Berkshire Hathaway held its annual shareholders meeting on Saturday, and attendees listened closely to Chairman and CEO Warren Buffett and Vice-Chairman Charlie Munger at what observers call "Woodstock for Capitalism."

Here are some of the best quotes and highlights of the day:

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  Saturday, 30 Apr 2016 | 4:38 PM ET

Oracle of Omaha: Buffett on Trump, Coke, and why you can't trust Wall Street

Posted ByAlex Crippen
Warren Buffett
Lacy O’ Toole | CNBC
Warren Buffett

Warren Buffett and his longtime business partner Charlie Munger appeared before thousands of Berkshire Hathaway shareholders in Omaha today.

Here's what they had to say, minute-by-minute, in their marathon Q&A session. (App users, click here to open)

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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'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.