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CNBC Transcript: CNBC's Becky Quick Speaks with Billionaire Investor Warren Buffett on CNBC’s “Squawk Alley” Today

WHEN: Today, Tuesday, September 8th

WHERE: CNBC's "Squawk Alley"

Following is the unofficial transcript of a CNBC interview with CNBC's Becky Quick and Berkshire Hathaway Chairman & CEO Warren Buffett live on CNBC's "Squawk Alley" (M-F, 11AM-12PM ET) today. Video from the interview is available on CNBC.com.

All references must be sourced to CNBC.

CARL QUINTANILLA: THE ANNUAL LUNCH WITH WARREN BUFFETT IS TODAY. THE WINNING BIDDER OF THE GLIDE FOUNDATION LUNCH PAID OVER $2.3 MILLION TO HAVE LUNCH WITH THE ORACLE OF OMAHA. LET'S SEND IT OVER TO BECKY QUICK, WHO IS WITH THE MAN HIMSELF.

BECKY QUICK: THANK YOU VERY MUCH. AGAIN WE ARE LIVE, WITH WARREN BUFFETT. WARREN, $2.3 MILLION IS A LOT OF MONEY TO PAY FOR A LUNCH. I KNOW IT GOES TO GLIDE, BUT YOU'RE NO CHEAP DATE.

WARREN BUFFETT: JUST THINK OF THE TIP.

QUICK: I'M REALLY GLAD THAT WE HAVE YOU HERE TODAY, BECAUSE WE'VE BEEN WATCHING THE MARKETS AND THERE'S BEEN SO MUCH VOLATILITY. SO MUCH CONCERN. EVEN TODAY, THIS MORNING, THE FUTURES AT ONE POINT UP OVER 350 POINTS BEFORE THE MARKET OPENED. WHAT DO YOU THINKI IS HAPPENING? WHY IS THIS TAKING PLACE?

BUFFETT: I'M NO GOOD ON WHAT'S GOING ON IN MARKETS. I HAVE NO IDEA WHAT WILL HAPPEN TOMORROW OR NEXT WEEK AND SOMETIMES THEY'RE, THEY GET VERY VOLATILE LIKE THIS AND OTHER TIMES THEY PUT YOU TO SLEEP. BUT THE IMPORTANT THING IS WHERE THEY'RE GOING TO HAVE IN FIVE OR TEN YEARS. AND I'M CONFIDENT THEY'LL BE CONSIDERABLY HIGHER IN TEN YEARS. AND I REALLY HAVE NO IDEA WHERE THEY'LL IN TEN DAYS OR TEN MONTHS.

QUICK: LEE COOPERMAN WAS ON "SQUAWK BOX" THIS MORNING AND HE SAID THAT HE THINKS THAT SOME OF IT IS BECAUSE WHAT'S BEEN HAPPENING WITH SOME OF THE FORCED COMPUTER BUYING THAT'S TAKING PLACE. DO YOU THINK THERE IS ANY TRUTH TO THAT?

BUFFETT: I DON'T KNOW. I DON'T KNOW THAT MUCH ABOUT IT. IT DOESN'T REALLY MAKE ANY DIFFERENCE TO US, IF WE'RE BUYING A STOCK, WE USUALLY TRY AND BUY A GIVEN PERCENTAGE OF THE VOLUME THAT TRADES THAT DAY. SAME WAY FOR SELLING ALTHOUGH WE DON'T SELL VERY OFTEN. SO DOWN DAYS I LIKE BECAUSE WE BUY THEM CHEAPER AND WE DON'T TRY TO REALLY FIGURE OUT WHAT'S GOING ON IN MARKETS. I'VE NEVER BEEN ANY GOOD AT IT.

QUICK: HAVE YOU SEEN THIS RECENT PULL-BACK AS A REASON TO BE BUYING?

BUFFETT: WELL WE, WE'RE BUYING BECAUSE WE LIKE WHAT WE'RE BUYING IN RELATION TO ITS LONG-TERM PROSPECTS IF WE LIKED IT AT X A FEW WEEKS AGO AND IT'S 95% OF X NOW, I LIKE IT EVEN BETTER AND IF IT GOES TO 90% OF X I'LL LIKE IT STILL BETTER?

QUICK: WHAT STOCK ARE YOU TALKING ABOUT?

BUFFETT: WELL YOU PROBABLY KNOW THE NAME, BUT I WOULDN'T TO BORE YOU WITH IT.

QUICK: WHEN WE SPOKE WITH YOU ON THE PHONE BACK ON AUGUST 10 I THINK IT WAS, YOU KIND OF HINTED THAT YOU MIGHT HAVE BEEN BUYING MORE SHARES OF IBM IN THE SECOND QUARTER. THOSE FILINGS CAME OUT AND KIND OF SURPRISED US. THAT THERE WEREN'T ANY ADDITIONAL PURCHASES IN THE SECOND QUARTER

BUFFETT: WELL I OWE YOU ONE ON THAT BECAUSE I THOUGHT I WAS BUYING IT IN THAT QUARTER WE BOUGHT IT IN THE FIRST QUARTER. AND NORMALLY I WOULDN'T TELL YOU THIS, BUT WE BOUGHT SOME IN THE THIRD QUARTER. I ACTUALLY THOUGHT THERE WAS PURCHASES IN THE SECOND QUARTER. I WOULDN'T HAVE SAID THAT UNLESS I THOUGHT THE NUMBER WAS GOING TO BE A LITTLE BIT HIGHER. BUT I WAS WRONG. SO I HAVE TO TELL YOU THAT WE HAVE BOUGHT A LITTLE IN THE THIRD QUARTER AND WE DID BUY IT IN THE FIRST QUARTER AS WELL.

QUICK: THAT WAS AUGUST 10th. SO I TAKE IT YOU WERE BUYING IN THE THIRD QUARTER BEFORE AUGUST 10, EVEN BEFORE THE MARKET VOLATILITY CAME UP.

BUFFETT: I DON'T REMEMBER THAT EXACTLY AND I GOT IN TROUBLE GIVING AN ANSWER WHERE I DIDN'T REMEMBER PERFECTLY BEFORE. SO I'LL LEAVE IT AT WHAT I SAID WHICH IS TRUE, THAT WE DEFINTELY BOUGHT IT IN THE FIRST QUARTER AND THE THIRD QUARTER AND WE DEFINITELY DID NOT BUY IN THE SECOND QUARTER EVEN THOUGH I KIND OF THOUGHT THAT WE HAD.

QUICK: YOU'VE BEEN SPENDING A LOT OF MONEY RECENTLY THOUGH WITH PRECISION CAST PARTS. YOU HAVE OBVIOUSLY SPENT BILLIONS AND BILLIONS OF DOLLARS.

BUFFETT: WE HAVEN'T SPENT IT YET BUT WE'RE GETTING READY TO SPEND IT.

QUICK: DOES THAT LEAVE YOU SHORT OF CASH THOUGH. WHEN YOU SEE A PULLBACK OF 10% OR MORE, DOES IT MAKE IT TOUGHER FOR TO YOU COME UP WITH THE MONEY TO BUY THINGS THAT ARE 10% CHEAPER THAN THEY WERE BEFORE.

BUFFETT: WE KNOW WE'RE GOING TO BE LAYING OUT 32 BILLION IN THE NEXT PROBABLY FOUR OR FIVE MONTHS SO I'VE STILL GOT MONEY LEFT TO BUY. I'LL NEVER GO BELOW $20 BILLION OF CASH, IN FACT I WON'T EVEN GO VERY CLOSE TO IT BECAUSE I DON'T WANT TO GO BELOW IT AND I PROMISED I WON'T GO BELOW IT SO WE MIGHT BE A LITTLE LESS AGGRESSIVE IN BUYING THINGS IN THE OPEN MARKET. BUT IF WE'RE BUYING AND WE'RE SPENDING SAY 500 MILLION A WEEK, IN THREE OR FOUR WEEKS, THAT'S JUST A COUPLE BILLION DOLLARS, SO THE 32 BILLION IS THE BIG CHUNK IT REALLY, I HAVEN'T HELD BACK FROM DOING ANYTHING BECAUSE OF THAT UPCOMING PURCHASE.

QUICK: IS 500 MILLION, IS THAT A NORMAL WEEK AT BERKSHIRE?

BUFFETT: IT CAN BE. SOMETIMES IT'S 200 MILLION. SOMETIMES IT'S A LITTLE MORE. IT DEPENDS ON, USUALLY WHEN STOCKS ARE GOING DOWN, THE VOLUME PICKS UP. SO IF WE'RE BUYING 20% OF THE VOLUME, WE WILL BE BUYING MORE PER DAY ON BIG DOWN DAYS. THAN OTHER DAYS. SO I LIKE HIGH-VOLUME DAYS FROM THE STANDPOINT OF OUR PURCHASES, BECAUSE I THINK IF WE BUY MORE THAN 20% A DAY WE'RE PROBABLY AFFECTING THE PRICE TOO MUCH. AND ON THE OTHER HAND, I LIKE TO BUY AS MUCH AS I CAN GET. SO I SORT OF HIT ON THAT 15 OR 20% A DAY.

QUICK: LET'S TALK A LITTLE BIT WHAT ELSE WE FOUND OUT IN THE MOST REEST FILINGS THAT CAME OUT. PHILLIPS 66 YOU NOW \ HAVE A $4.5 BILLION STAKE IN THE COMPANY?

BUFFETT: THAT'S CORRECT.

QUICK: WHAT HAPPENED, WHY DID YOU BUY INTO THAT BECAUSE THIS IS SOMETHING THAT YOU TRADED OUT YOUR SHARES FOR BACK AT THE END OF 2013 FOR I GUESS SOME PIPELINES THAT YOU WERE --

BUFFETT: WE TRADED THE SHARES, WE WERE ABLE TO DO IT ON A TAX-ADVANTAGED BASIS, WE DIDN'T TRADE THEM BECAUSE WE DISLIKED THE STOCK AT ALL. A MATTER OF FACT I LIKED THE STOCK WHEN WE TRADED IT. IT WAS A CHANCE TO DO A TRANSACTION TO BUY AN ASSET WE LIKED VERY MUCH. TO DO IT ON A TAX-FREE BASIS, THEY COULD DO IT ON A TAX-FREE BASIS AND I HAD ALWAYS INTENDED THAT WE WOULD COME BACK IN. ASSUMING THAT THE PRICE WAS RIGHT. AND WE DID.

QUICK: IT MUST BE VERY SPECIFIC TO PHILLIPS 66 THOUGH. BECAUSE YOU SOLD YOUR SHARES OF EXXONMOBIL I THINK IN THE FOURTH QUARTER LAST YEAR.

BUFFETT: THEY'RE IN DIFFERENT BUSINESSES, TO SOME DEGREE. PHILLIPS 66 HAS NO UPSTREAM PRODUCTION, THAT PROBABLY ACCOUNTS FOR THE BULK OF THE VALUE OF AN EXXON. ON THE OTHER HAND, PHILLIPS 66 IS NOT A PURE REFINER. THEY'VE GOT A BIG CHEMICALS DIVISION, A MID STREAM BUSINESS. SO IT'S NOT, WE'RE NOT BUYING IT AS A REFINER, WE'RE CERTAINLY NOT BUYING IT AS AN INTEGRATED OIL COMPANY WE'RE BUYING IT BECAUSE WE LIKE THE COMPANY AND WE LIKE THE BMANAGEMENT VERY MUCH. EVER SINCE GREG GARLAND HAS TAKE TN OVER AFTER IT SPUN OUT OF CONOCO PHILLIPS, HE'S DONE A TERRIFIC JOB. SO I'VE LIKED THE COMPANY.

QUICK: IS IT SOMETHING THAT YOU COULD SEE EVENTUALLY ADDING BY BUYING THE COMPANY OUTRIGHT?

BUFFETT: WELL, THAT'S A LONG – WOULD BE A LONG STRETCH FROM HERE AND WE NEVER, WE WOULD ONLY DO SOMETHING IN ANY COMPANY IF THE COMPANY WANTED US TO. AND I THINK THEY'RE VERY HAPPY TO BE INDEPENDENT.

QUICK: ARE THERE OTHER OPPORTUNITIES THAT YOU SEE IN THE OIL AND NATURAL GAS POSITIONS AT THIS POINT? JUST BECAUSE OF THE HUGE DROP WE'VE SEEN IN OIL AND GAS.

BUFFETT: I THINK THAT'S THE ONLY OIL COMPANY THAT'S CONNECTED WITH THE OIL AND GAS INDUSTRY THAT WE OWN. ALTHOUGH PRECISION CASH PARTS MAKES EQUIPMENT FOR THE OIL INDUSTRY AND OUR LUBRIZOL OPERATION PRODUCES CHEMICALS THAT ARE USED IN OIL AND GAS PRODUCTION.

QUICK: WARREN, LET'S TALK ABOUT THE ECONOMY BECAUSE AGAIN, THE LAST TIME WE SPOKE WITH YOU, YOU SAID YOU THOUGHT IT WOULD BE A PRETY TOUGH CALL FOR THE FEDERAL RESERVE. SINCE THEN, YOU'VE HAD FANTASTIC ECONOMIC NEWS THAT'S BEEN COMING OUT WITH THE JOBS REPORT AND UNEMPLOYMENT NOW LOOKING AT ITS 5.1%. YOU'VE HAD AUTO SALES THAT CAME IN AT A RATE OF ABOUT 17.7 OR 17.8 MILLION, WHICH IS BACK TO WHAT WE WERE SEEING IN THE PRE 2007 PERIOD. ALL OF THOSE THINGS ADD UP TO A GREAT ECONOMY, AND YET THE MARKET'S VOLATILITY COULD BE SOMETHING THAT WOULD KEEP THE FED ON PAUSE. HOW DO YOU KIND OF DO THE CALCULUS ON THIS?

BUFFETT: THEY HAVE NEVER ASKED ME TO BE A MEMBER OF THE FED, MAYBE THEY THINK I DON'T KNOW ANYTHING ABOUT IT AND THEY ARE CORRECT. I HAVE ALWAYS THOUGHT THEY WOULD BE SLOW JUST BECAUSE OF THE EFFECT ON CURRENCIES AROUND THE WORLD, IF OUR INTEREST RATES KEEP GETTING STRONGER WHEN EUROPE IS TRYING TO KEEP THEM LOW. ONE THING YOU HAVE TO BE A LITTLE CAREFUL ABOUT IN GDP STATISTICS, WHEN WE TALK ABOUT EARNINGS OF COMPANIES, WE ARE ALWAYS TALKING THIS YEAR VERSUS LAST YEAR IF WE SAY THEY'RE UP 5%. WITH GDP, WHEN WE TALK QUARTERLY, WE'RE TALKING ABOUT SEQUENTIAL. IF YOU LOOK AT YEAR-OVER-YEAR FIGURES ON GDP, THEY'RE TWO AND A FRACTION PERCENT, AND THEY'VE BEEN THAT WAY QUARTER AFTER QUARTER AFTER QUARTER. BUT THE QUARTERLY FIGURES, WHEN YOU MULTIPLY SOMETHING BY FOUR, LITTLE CHANGES GET MULTIPLIED A LOT. SO THE SEASONAL ADJUSTMENTS BOTH OF THE CURRENT PERIOD AND THE LAST PERIOD, THEY CONTROL THOSE QUARTERLY NUMBERS A LOT WHEN YOU REPORT SEQUENTIALLY. I THINK IN A WAY IT'S BETTER TO LOOK AT THEM YEAR OVER YEAR. AND YEAR OVER YEAR WE'VE BEEN IN THE 2.5% RANGE NOW FOR, I DON'T KNOW, SIX QUARTERS OR SOMETHING LIKE THAT. SO I WOULD BE A LITTLE CAREFUL IN GETTING TOO EXCITED ABOUT QUARTERLY STATISTICS IN EITHER DIRECTION, AS LONG AS YOU'RE LOOKING AT THEM SEQUENTIALLY.

QUICK: SO YOU THINK THE ECONOMY IS NOT NECESSARILY AS STRONG AS THE MOST RECENT NUMBERS WE'VE SEEN?

BUFFETT: I THINK WE'RE STILL ON THAT PATH WE'VE BEEN ON FOR SIX YEARS, WHERE IT'S GROWING AT 2 TO A LITTLE BIT BETTER THAN 2% ANNUALLY AND THAT'S NOT A BAD RATE, BUT IT'S NOT A BOOMING RATE EITHER. I THINK THAT'S ABOUT WHERE WE STILL ARE.

QUICK: SO IT MAY NOT BE A BOOMING RATE FOR THE ECONOMY, BUT IT'S PROBABLY ALSO NOT AN ECONOMY THAT WARRANTS 0% INTEREST RATES. I MEAN THAT'S A FIRE SALE, THAT'S AN EMERGENCY SORT OF SITUATION. WHY NOT MOVE OFF OF ZERO?

BUFFETT: THEY PROBABLY WILL. I DON'T KNOW. LIKE I SAY, IF OUR RATES GOT SUBSTANTIALLY HIGHER THAN EUROPE'S, I WOULD NOT THINK THAT WOULD NECESSARILY BE GOOD FOR EXPORTS FOR THIS COUNTRY. IN ECONOMICS YOU CAN NEVER JUST DO ONE THING. THERE'S ALWAYS AND THEN WHAT? I THINK THE "AND THEN WHAT" OF MOVING RATES UP SUBSTANTIALLY WHILE EUROPE IS TRYING TO KEEP THEM VERY LOW, IS GOING TO HAVE SOME CONSEQUENCES DOWN THE LINE.

QUICK: DO YOU THINK THIS FED HAS A DIFFERENT JOB? HAVE THINGS REALLY GOTTEN THAT MUCH MORE GLOBAL AND KIND OF OUT OF THE FED'S CONTROL?

BUFFETT: I THINK THEY'D HAVE TO THINK ABOUT EVERYTHING. I MEAN THAT'S THEIR JOB AND THEY'RE LOOKING AT A LOT OF THINGS THAT I'M NOT LOOKING AT AND THEY MORE GET BETTER INFORMATION I'M SURE ON LOTS OF THINGS. SO I DON'T ENVY THEIR JOB AND TO SOME EXTENT MAYBE BY THEIR COMMENTARY, THEY'VE SORT OF PUSHED THEMSELVES INTO SOMETHING WHERE THEY HAVE TO DO A LITTLE BIT SOMETHING HERE. BUT I WOULD NOT BE TERRIBLY AGGRESSIVE IF I WERE IN THAT POSITION.

QUICK: SO THERE ARE SOME PEOPLE WHO ARE IN THE CAMP OF RAISE IT 25 BASIS POINTS AND THEN BACK OFF AND DON'T DO ANYTHING FOR A LONG TIME. WHICH IS FINE IN THEORY. BUT THE MARKET DOESN'T KNOW EXACTLY WHAT YOU'RE DOING UNTIL THEY WATCH ON A DAY-TO-DAY BASIS.

BUFFETT: I'VE NEVER MADE A DECISION BASED ON WHAT I THINK THE FED IS GOING TO DO NEAR-TERM OR LONGER-TERM. I MEAN IT JUST DOESN'T ENTER. WHEN WE DECIDED TO BUY PRECISION CASH PARTS, THERE WASN'T ONE WORD OF CONVERSATION WITH MY PARTNER, CHARLIE OR WITH OUR BOARD OF DIRECTORS ABOUT FED ACTION. AND THE SAME THING GOES WITH OUR PURCHASE OF PHILLIPS PETROLEUM. PHILLIPS 66.

QUICK: IN MAY, WHEN I SPOKE WITH YOU AND BILL GATES IN OMAHA FOR THE BERKSHIRE ANNUAL MEETING, YOU BOTH SAID THAT WHETHER THE STOCK MARKET WAS FAIRLY VALUED OR NOT DEPENDED ON WHAT HAPPENED WITH INTEREST RATES.

BUFFETT: CORRECT.

QUICK: SO IF INTEREST RATES GO UP FROM HERE, DOES THAT CHANGE YOUR PERSPECTIVE ABOUT THE STOCK MARKET OVERALL?

BUFFETT: NOT IF THEY GO UP 100 BASIS POINTS. IF THEY GO UP 400 OR 500 BASIS POINTS THAT CHANGES A LOT.

QUICK: BUT AT THIS POINT, EVEN IF WE WERE TO SEE 100 – LIKE A 1 POINT –

BUFFETT: 100 BASIS POINTS, IS NOT – IF INTEREST RATES, IF YOU GUARANTEE ME INTEREST RATES WOULD BE AT 100 BASIS POINTS HIGHER THAN THIS FOR THE NEXT 20 YEARS, I WOULD BE BUYING STOCKS HAND OVER FIST.

QUICK: WE KNOW THAT THERE ARE A LOT OF STOCKS THAT YOU'VE BEEN INVOLVED WITH. BANK OF AMERICA IS ONE OF THEM. I THINK YOU OWN NONVOTING SHARES AND WARRANTS?

BUFFETT: YEAH, NONVOTING SHARES.

QUICK: SO YOU WON'T GET THE CHANCE TO VOTE THIS, BUT WE'LL ASK YOU YOUR OPINION ANYWAY. BANK OF AMERICA, THERE'S BEEN A LOT OF TURMOIL ABOUT THE IDEA OF BRIAN MOYNIHAN TAKING THE ROLE OF BOTH CEO AND CHAIRMAN. IT WENT AGAINST A 2009 PROXY VOTE THAT WAS TO KEEP THOSE TWO ROLES SEPARATE. NOW THEY'RE GOING TO BE ASKING SHAREHOLDERS DIRECTLY. WHAT DO YOU THINK?

BUFFETT: WELL IF I COULD VOTE, I WOULD VOTE AS MANAGEMENT SUGGESTS, WHICH IS TO HAVE BRIAN TAKE ON THE CEO AND CHAIRMAN JOB.

QUICK: ARE YOU BOTHERED BY THE IDEA OF JUST HOW IT WAS DONE? HOW THE BOARD DID THIS AND IGNORED WHAT WAS A BINDING PROXY VOTE FROM 2009?

BUFFETT: I GUESS THEY'RE PUTTING IT BACK TO THE SHAREHOLDERS NOW, SO I'M NOT BOTHERED – I DO NOT THINK THAT'S A BIG DEAL. I THINK THAT WHAT BRIAN DOES, BRIAN HAS DONE, HE TOOK A COMPANY THAT WAS JUST A TERRIBLE MESS, I MEAN IT'S BEEN VIRTUALLY DESTROYED, THE PUBLIC HATED IT, THE GOVERNMENT HATED IT. THEY HAD ALL KINDS OF LAWSUITS COMING IN AND EMPLOYEE MORALE WAS TERRIBLE. AND HE'S RESUSCITATED IT AND I THINK HE HAS DONE A FIRST CLASS JOB. AND IF HE IS THE CHAIRMAN AS WELL AS THE CEO, GOD BLESS HIM.

QUICK: IT WAS A COMPANY IN CRISIS AND AS SOMEBODY WHO HAS BEEN IN BUSINESS FOR A LONG TIME YOU'VE BEEN THROUGH A CRISIS OR TWO YOURSELF. AND I THINK YOU'VE EVEN COME UP WITH A MOTTO THAT YOU TELL PEOPLE TO STICK WITH: GET IT RIGHT, GET IT FAST, GET IT OVER, BUT GET IT RIGHT FIRST. AND THAT HAS BEEN YOUR WAY.

BUFFETT: YEAH, YOU GOT TO GET IT RIGHT, THEN GET IT FAST, GET IT OUT AND GET IT OVER. BUT YOU GOT TO GET IT RIGHT FIRST. AND THAT'S WHAT HE'S WORKED AT DOING.

QUICK: DO YOU THINK THAT'S WHAT HILLARY CLINTON HAS DONE WITH THE EMAIL SITUATION?

BUFFETT: WELL THAT'S SLIPPERY. I WOULD SAY THAT NO, I WOULD SAY IT WAS A MISTAKE. IT WAS A MISTAKE TO HAVE THE PRIVATE SERVER AND I THINK IT WAS A MISTAKE. IN THE FIRST TALK SHE ACKNOWLEDGED THE FACT SHE WOULD HAVE DONE IT DIFFERENTLY, I THINK IT'S BETTER JUST TO BE VERY BLUNT IN THOSE KIND OF SITUATIONS. SAY I MADE A MISTAKE AND YOU KNOW, FORTUNATELY, IT DID NOT RESULT IN ANY BREACH OF SECURITY OR CONFIDENTIAL. BUT THE BEST THING TO DO IS GET IT BEHIND YOU.

QUICK: IT'S BEEN MONTHS AND MONTHS OF THIS. AND AS RECENTLY AS LAST MONTH SHE WAS MAKING JOKES ABOUT IT. KIND OF COMPARING IT TO SNAPCHAT. DOES THAT BOTHER YOU AS A SUPPORTER?

BUFFETT: IT DOESN'T BOTHER ME, BUT I DON'T THINK IT WAS THE BEST WAY TO HANDLE IT. BUT IT DOESN'T BOTHER ME. WHAT I CARE ABOUT WITH HILLARY IS I CARE ABOUT WHAT SHE WOULD DO IF SHE WERE PRESIDENT OF THE STATES AND HER ABILITY TO DO IT IF SHE BECOMES PRESIDENT OF THE UNITED STATES. AND I THINK IN THOSE BOTH RESPECTS, I'M A TERRIFIC SUPPORTER.

QUICK: WE'VE BEEN WATCHING HER POLL NUMBERS, THE MOST RECENT POLL SHOWS THAT YOU ACTUALLY HAVE BERNIE SANDERS WHO HAS TAKEN A LEAD OVER HER IN NEW HAMPSHIRE AND IOWA. ARE YOU SURPRISED BY THAT?

BUFFETT: WELL I'M SURPRISED, BUT I THINK BERNIE SANDERS HAS BEEN A TERRIFIC CAMPAIGNER. I THINK HE CAMPAIGNS EXACTLY AS I WOULD HOPE THAT I WOULD CAMPAIGN IF I WERE A CANDIDATE.

QUICK: HOW SO?

BUFFETT: WELL, HE'S BEEN FORTHRIGHT. HE'S NOT BEEN KNOCKING THE OTHER CANDIDATES. HE DOESN'T – HE'S NOT GOING AROUND SAYING NASTY THINGS ABOUT OTHER PEOPLE. HE'S JUST SAYING HERE'S MY PROGRAM. IF I GET ELECTED I WOULD WANT TO HAVE ANY JUDGE BE PLEDGED TO GETTING RID OF CITIZENS UNITED THAT I CARE ABOUT ALL THE PEOPLE THAT ARE BEING LEFT BEHIND. I THINK HE'S RUN A MODEL CAMPAIGN. HE'S NOT GOING TO GET ELECTED, BUT I THINK HE – I ADMIRE HIM.

QUICK: IN TERMS OF JOE BIDEN POTENTIALLY GETTING INTO THE RACE, DO YOU KNOW HIM? WHAT DO YOU THINK OF HIM?

BUFFETT: I PROBABLY ONLY MET HIM ONCE OR TWICE IN MY LIFE. HE'S RUN FOR PRESIDENT TWICE. HE SPENT 40 YEARS IN POLITICS. NOBODY RUNS FOR PRESIDENT TWICE AND GETS TO BE VICE PRESIDENT THAT DOESN'T CONSIDER RUNNING AGAIN, IF THEY THINK THEY HAVE A CHANCE, A REASONABLE CHANCE. AND I'M SURE THAT'S WHAT HE'S WEIGHING. PLUS HE HAS ALL THE PERSONAL PROBLEMS TO DEAL AS WELL, BUT I THINK IF HE THINKS THERE'S A REASONABLE CHANCE OF GETTING THE NOMINATION, I THINK HE'LL RUN. BUT IT DOES GET TOUGHER AS THE WEEKS GO BY.

QUICK: THE PERSONAL PROBLEMS, YOU MEAN THE DEATH OF HIS SON – STILL GETTING PAST THAT?

BUFFETT: YES I MEAN THAT IS A VERY, VERY – AND HIS SON EXPRESSING TO HIM THAT HE HOPED HE WOULD RUN. THAT'S AN ADDED BURDEN IN EFFECT.

QUICK: WE HAVE BEEN WATCHING DONALD TRUMP VERY CLOSELY AND I KNOW WE'VE SPOKEN WITH YOU –

BUFFETT: YOU AND 320 MILLION OTHER AMERICANS, YEAH.

QUICK: YEAH. DO YOU WATCH HIS PRESS CONFERENCES?

BUFFETT: OH SURE. HOW YOU CANNOT WATCH THEM?

QUICK: HE SAID SOMETHING VERY INTERESTING THE OTHER DAY. HE SAID THAT JEB BUSH AND HILLARY CLINTON ARE OWNED BY BILLIONAIRES AND BY SPECIAL INTEREST GROUPS. THAT THE REASON YOU SHOULD SUPPORT HIM IS BECAUSE HE'S NOT OWNED BY PEOPLE LIKE YOU. WHAT DO YOU THINK? HE'S TAPPED INTO SOMETHING –

BUFFETT: NO. WELL, I DON'T BELIEVE THAT'S TRUE. I BELIEVE THAT BILLIONAIRES AND SPECIAL INTERESTS HAVE A GREATER INFLUENCE IN POLITICS GENERALLY THAN I WOULD LIKE THEM TO HAVE AND I THINK CITIZENS UNITED REALLY SORT OF OPENED THE BARN DOOR ON THAT. BUT IN TERMS OF EITHER ONE OF THOSE PEOPLE BEING OWNED, THAT WOULD NOT BE TRUE.

QUICK: IN TERMS OF WHAT HE'S ABLE TO TAP INTO, THOUGH, THERE'S SOMETHING THAT HE'S REALLY CONNECTED WITH.

BUFFETT: THAT'S FOR SURE.

QUICK: FOR UPSET WITH THE ESTABLISHMENT, THEY LIKE PEOPLE FROM THE OUTSIDE. AND IN FACT I THINK IN THE REPUBLICAN POLLS, IF YOU TAKE TRUMP, FIORINA AND CARSON AND ADD THEM UP, IT'S MORE THAN HALF OF THE REPUBLICAN VOTERS WHO ARE SUPPORTING THEM.

BUFFETT: RIGHT. THREE PEOPLE THAT HAVE NEVER HELD AN OFFICE. THE FEELING OF THE AMERICAN PUBLIC, AND THAT MAY EVEN EXTEND INTO THE DEMOCRATIC RACE, ALTHOUGH SANDERS HAS BEEN IN. THERE'S A FEELING I'M FED UP SO I WANT SOMETHING ELSE.

QUICK: WHAT DO YOU THINK HAPPENS? HOW DOES THAT PLAY OUT? BECAUSE THIS IS A LITTLE DIFFERENT FROM WHAT WE HAVE SEEN BEFORE.

BUFFETT: THE REPUBLICAN RACE REMINDS ME OF BEING AT AN AMUSEMENT PARK AND WATCHING ALL THE KIDS IN BUMPER CARS. YOU'VE GOT 1700 BUMPER CARS SMACKING INTO EACH OTHER. AND I THINK IT WILL GET SORTED OUT, BUT THERE'S NO QUESTION THAT WHAT YOU'RE SEEING IS INDICATIVE OF A LOT OF DISSATISFACTION IN THE COUNTRY WITH WASHINGTON POLITICIANS AND PERHAPS THE MEDIA TO SOME EXTENT, TOO.

QUICK: OK WELL, WARREN, I WANT TO THANK YOU VERY MUCH FOR YOUR TIME TODAY. WE REALLY APPRECIATE IT.

BUFFETT: OK. THANK YOU.

QUICK: AND WE HOPE YOU ENJOY YOUR LUNCH.

BUFFETT: I WILL. THANK YOU.

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