WHEN: Today, Tuesday, January 23, 2018
WHERE: CNBC's "Squawk Box" – Live from the World Economic Forum in Davos, Switzerland
Following are excerpts from the unofficial transcript of CNBC interviews on CNBC's "Squawk Box" this morning live from the World Economic Forum in Davos, Switzerland, including: Uber CEO Dara Khosrowshahi, Cisco CEO Chuck Robbins, Hilton Worldwide CEO Christopher Nassetta, Bridgewater Associates Founder, Chairman and Chief Investment Officer Ray Dalio, Paypal CEO Dan Schulman, The Carlyle Group Co-Founder David Rubenstein, and Salesforce Chairman and CEO Marc Benioff.
For a roundup of all the interviews on CNBC's "Squawk Box" today, go to davos.cnbc.com.
All references must be sourced to CNBC.
Dara Khosrowshahi, Uber CEO:
Video from CNBC: https://www.cnbc.com/video/2018/01/23/sb-.html?play=1.
Dara Khosrowshahi on Softbank:
WELL, WE ARE THRILLED TO HAVE SOFT BANK AS AN INVESTOR. AS YOU KNOW, THEY'RE ONE OF THE BIGGEST CAPITAL PLAYERS IN THE WORLD. AND THROUGH THEIR HISTORICAL INVESTMENTS, THEY KNOW THE RIDESHARING INDUSTRY. THE KNOW ELECTRIFICATION. THEY UNDERSTAND TRANSPORTATION IN A WAY THAT FEW INVESTORS DO. SO, WE'RE THRILLED TO HAVE THEM BEHIND US AND INVESTING IN UBER, AND NOT OUR COMPETITORS WHICH IS A GREAT THING.
Dara Khosrowshahi on Softbank:
THE SOFTBANK INVESTMENT ALSO CAME WITH CERTAIN GOVERNANCE CHANGES THAT WE NEEDED TO MAKE AS A COMPANY, SUCH AS GETTING RID OF THE HIGH VOTE SHARES, REALLY GOING TO ONE SHARE, ONE VOTE FOR EVERYBODY AT UBER. SO EVERYONE HAS AN EQUAL VOICE. AND WE THINK THOSE GOVERNMENT REFORMS ARE INCREDIBLY IMPORTANT AS WE DRIVE THE COMPANY FORWARD TO BEING A PUBLIC COMPANY, HOPEFULLY IN 2019
Dara Khosrowshahi on Travis Kalanick:
THE RELATIONSHIP WITH TRAVIS IS FINE BUT IT'S STRAINED, BECAUSE OBVIOUSLY
THERE WAS A LOT THAT HAPPENED IN THE PAST THAT WASN'T RIGHT. AND I THINK THE MORAL COMPASS OF THE COMPANY WASNT WHERE IT NEEDED TO BE, AND WHILE YOU DONT WANT TO BLAME INDIVIDUALS, IN THE END THE CEO OF THE COMPANY HAS TO TAKE RESPONSIBILITY. AND I THINK A LOT OF THE PRESS COVERAGE IS DIFFICULT FOR HIM. AND THAT'S UNDERSTANDABLE. TRAVIS HAS BEEN THERE FOR ADVICE WHEN I NEEDED IT AS A BOARD MEMBER. BUT THIS IS A DIFFICULT TIME FOR HIM AND AS A COMPANY WE HAVE TO LOOK PAST THAT. MY JOB IS TO MOVE THE COMPANY FORWARD, MOVE THE CULTURE OF THE COMPANY FORWARD AND RIGHT NOW THAT IS WHAT I AM FOCUSED ON.
Dara Khosrowshahi on an Uber IPO:
SO THE PUBLIC MARKETS HOLD CEOs AND TEAMS ACCOUNTABLE. AND I THINK WITH UBER, THIS IS A COMPANY THAT'S ABSOLUTELY BEEN HELD ACCOUNTABLE. TO SOME EXTENT I THINK UBER SUFFERS FROM THE NEGATIVES OF A PUBLIC COMPANY, BECAUSE THE WORLD IS FASCINATED WITH EVERYTHING THAT WE DO WE DO, AND WE DON'T GET ANY THE BENEFITS OF BEING PUBLIC I THINK LET'S STEP UP TO THE PLATE. THIS A BIG SCALE COMPANY. IT'S AN IMPORTANT BRAND ALL ACROSS THE WORLD, AND WE ARE GOING TO STEP UP AND WE'RE GOING TO BE A PUBLIC COMPANY THAT OUR EMPLOYEES CAN BE PROUD OF.
Dara Khosrowshahi on Uber in London:
WE ARE CONTINUING TO HAVE DIALOGUE WITH THE REGULATORS IN LONDON. AND I'M CAUTIOUSLY OPTIMISTIC. I THINK THAT THE DIFFERENCE HERE IS THAT WE'RE BEING OPEN AND HONEST. AND THERE WERE THINGS IN THE PAST THAT WE DID THAT WEREN'T RIGHT. AND ALL OF TRANSPORT FOR LONDON'S QUESTIONS AND ISSUES, THEY MAKE COMPLETELY SENSE. AND WE'VE ASKED THEM TO BE PATIENT WITH US IN SOME AREAS BUT THEY'VE BEEN VERY CLEAR ABOUT WHAT THEY NEED. I BELIEVE WE CAN DELIVER. AND I THINK THAT LONDON WITH UBER IN IT IS A BETTER CITY. AND I KNOW UBER WITH LONDON AS A LARGE MARKET IS GOING TO BE A BETTER COMPANY.
Dara Khosrowshahi on Uber scandals:
I CAN HONESTLY CAN SAY THAT I HOPE WE'RE DONE. AND I CAN TELL YOU THAT THE EMPLOYEES AT OUR COMPANY ARE OPEN AND HAVE TAKEN RESPONSIBILITY FOR THE PAST, SOME HAVE LEFT, AND ARE LOOKING FORWARD AND ARE ABSOLUTELY GOING TO DO THE RIGHT THING. BUT IF THERE HAS BEEN BEHAVIOR IN THE PAST, I BELIEVE THAT IT'S BEEN OUT THERE. THAT'S WHAT I BELIEVE. AND WE'VE DONE INVESTIGATIONS AND WE'RE LOOKING THROUGH EVERYTHING. AND SOMETIMES WHEN WE FOUND THINGS THAT WERE UNPLEASANT, EVEN THOUGH WE KNEW IT WOULD HURT, WE DISCLOSED IT.
Dara Khosrowshahi on Uber scandals:
THE ONLY THING THAT WE CAN DO IS BE TRANSPARENT. TONY WEST, OUR GENERAL COUNSEL, WHEN WE WERE TALKING ABOUT THIS, SAID THAT SUNLIGHT IS THE BEST DISINFECTANT. AND RIGHT NOW WE HAVE TO BRING THESE ISSUES IN TO LIGHT, WE HAVE TO BE TRANSPARENT, WE HAVE TO ADMIT MISTAKES AND THEN WE HAVE TO CHANGE. AND THAT'S WHY WE BROUGHT IN NEW CULTURAL VALUES, NEW NORMS, AND ONE OF THE ONES THAT THAT I GET REPEATED TO ME OVER AND OVER AGAIN, NOT BY ME BUT BY OUR EMPLOYEES, IS DO THE RIGHT THING PERIOD. IF WE DO THAT WE'LL BE FINE.
Dara Khosrowshahi on autonomy:
I THINK THAT IT'S GOING TO TAKE A LONG TIME TO GET TO FULL, FULL AUTONOMY. IN SOFTWARE IT'S DIFFICULT TO WRITE SOFTWARE THAT SOLVES EVERY SINGLE PROBLEM OUT THERE. AND THERE ARE EDGE PROBLEMS IN SOFTWARE THAT CREATE ISSUES. EDGE PROBLEMS IN AUTONOMY. AND I THINK THE KEY WITH AUTONOMOUS IS THAT THERE IS GOING TO BE A HYBRID PERIOD, WHERE YOU'RE GOING TO HAVE CERTAIN ROUTES THAT CAN BE SERVED AUTONOMOUSLY, AND THERE'S CERTAIN ROUTES THAT ONLY A PERSON CAN SERVE. AND I THINK THAT WE AS UBER ARE IN A VERY GOOD POSITION HAVING AUTONOMOUS AND THE NETWORK UNDER ONE ROOF TO GET FROM HERE TO THERE. BUT THE THERE WILL TAKE FULLY AUTONOMOUS, I DO BELIEVE IS GOING TO TAKE TEN PLUS YEARS.
Chuck Robbins, Cisco CEO:
Video from CNBC: https://www.cnbc.com/video/2018/01/23/cisco-ceo-our-new-strategy-shows-we-are-making-progress.html?play=1.
Chuck Robbins on subscriptions:
WE EMBARKED ON A BIT OF A TRANSITION IN OUR BUSINESS, PRIMARILY BECAUSE OUR CUSTOMERS WERE ASKING US TO TRANSITION OUR BUSINESS AND ACTUALLY CHANGE THE WAY WE DELIVER OUR TECHNOLOGY. AND CUSTOMERS WANTED TO CONSUME MORE OF OUR TECHNOLOGY AS A SERVICE, WHICH LEADS TO MORE SUBSCRIPTION, WHICH LEADS TO MORE RECURRING REVENUE WHICH IS POSITIVE FOR A LONGER TERM BUSINESS MODEL. SO WE HAVE BEEN WORKING ON THAT. THE STRATEGY IS WORKING, AND I THINK THE RESULTS HAVE BEGUN TO SHOW THAT WE'RE MAKING A GREAT DEAL OF PROGRESS.
Chuck Robbins on hardware:
SO 80% OF OUR ENGINEERS ARE SOFTWARE ENGINEERS, AND THEY ALWAYS HAVE BEEN. SO THE WHOLE NOTION THAT WE'RE BECOMING A SOFTWARE COMPANY IS ACTUALLY NOT THE TRUTH. THE REALITY IS THAT WE'RE TAKING SOME OF OUR SOFTWARE ASSETS AND WE'RE ADDING NEW SOFTWARE ASSETS AND WE'RE ACTUALLY GIVING CUSTOMERS THE ABILITY TO CONSUME THOSE ASSETS, HOWEVER THEY LIKE. AND – BUT AT THE HEART, WE STILL BUILD HIGH PERFORMANCE HARDWARE BECAUSE WITHOUT IT THE INTERNET WOULDN'T RUN.
Chuck Robbins on the impact of tax reform:
WE'RE GOING TO ACTUALLY MAKE SOME ANNOUNCEMENTS ON OUR EARNINGS CALL NEXT WEEK BUT IT'S IN LINE WITH WHAT WE TALKED ABOUT IT. CONTINUE OUR PREVIOUS CAPITAL INVESTMENTS, LOOK AT SOME NEW INVESTMENTS, OBVIOUSLY WE'VE ALWAYS BEEN VERY KEEN ON M&A.
Christopher Nassetta, Hilton Worldwide CEO:
Video from CNBC: https://www.cnbc.com/video/2018/01/23/hilton-worldwide-ceo-we-have-more-rooms-under-construction-than-any-other-hotel-company.html?play=1.
Christopher Nassetta on 2017:
WE HAD A GREAT YEAR LAST YEAR. NOT ONLY DID WE OPEN A HOTEL A DAY PLUS, WE SIGNED MORE DEALS THAN WE EVER HAVE IN OUR HISTORY. WE SIGNED, YOU KNOW, A THOUSAND HOTELS LAST YEAR IN OUR PIPELINE. WE NOW HAVE MORE ROOMS UNDER CONSTRUCTION THAN ANY OTHER HOTEL COMPANY IN THE WORLD
Christopher Nassetta on Airbnb being the business of lodging:
I FUNDAMENTALLY BELIEVE WE'RE IN DIFFERENT BUSINESSES. AND THE SIMPLEST WAY TO TALK ABOUT IT IS WE'RE IN THE BUSINESS OF HOSPITALITY – TAKING PRODUCTS, WRAPPING IT IN AUTHENTIC, HEART FELT SERVICE, CONNECTING IT WITH TECHNOLOGY AND DELIVERING SORT OF A HOLISTIC APPROACH TO AN EXPERIENCE FOR A CUSTOMER. AND AIRBNB, WHICH IS A GOOD BUSINESS, IS MUCH MORE ABOUT THE BUSINESS OF LODGING.
Christopher Nassetta on Airbnb:
WHEN YOU LOOK AT OUR AVERAGE MARKET SHARE OF OUR 14 BRANDS, IS 115%. WE'RE THE PREMIUM PLAYER BECAUSE WE CONSISTENTLY GIVE HIGH QUALITY PRODUCT, HIGH QUALITY SERVICE, AMENITIES, TECHNOLOGY, THE THINGS THAT PEOPLE NEED. IT'S NOT THAT THEY DON'T DO IT, THEY'RE JUST DOING SOMETHING DIFFERENT.
Christopher Nassetta on cancellations:
IN A WORLD OF ALL THESE NEW TECHNOLOGIES THAT EVERYBODY CAN USE AND ALL OF THESE NEW APPS AND ALL OF THE OTHER INTERMEDIARIES THAT ARE SELLING OUR PRODUCTS, YOU'VE SEEN AN ESCALATION IN CANCELLATION RATES. AND WHAT THAT MEANS IS WE DON'T KNOW, ON ANY GIVEN NIGHT, WHO IS REALLY GOING TO SHOW UP. AND SO, EFFECTIVELY, IT HAS TO GET BUILT INTO OUR PRICING. EFFECTIVELY IT COSTS CONSUMERS MORE MONEY TO TIE UP INVENTORY.
Christopher Nassetta on international travelers:
THERE'S A HOST OF ISSUES CONTRIBUTING TO THAT. I THINK SOME OF IT, YOU KNOW, WITH THE TRAVEL BANS ARE A COMPONENT OF IT. THE OVERALL STRENGTH OVER THE LAST THREE OR FOUR YEARS AND THE DOLLAR HAS NOT BEEN HELPFUL. ONE OF THE THINGS THAT WE HAVE BEEN WORKING ON AS AN INDUSTRY IS TO WORK WITH THE ADMINISTRATION TO MAKE SURE THAT PEOPLE THAT WANT TO COME TO THE UNITED STATES – THE VAST MAJORITY OF THEM DONT WANT TO DO ANY HARM – FEEL LIKE THEY'RE WELCOME IN THE UNITED STATES.
Ray Dalio, Bridgewater Associates Founder, Chairman and Chief Investment Officer:
Videos from CNBC: https://www.cnbc.com/video/2018/01/23/ray-dalio-us-markets-in-beautiful-goldilocks-period.html?play=1, https://www.cnbc.com/video/2018/01/23/it-just-takes-a-little-change-in-interest-rates-to-have-a-bear-market-ray-dalio-on-monetary-policy.html?play=1, & https://www.cnbc.com/video/2018/01/23/ray-dalio-says-market-surge-may-be-ahead-if-youre-holding-cash-youre-going-to-feel-pretty-stupid.html?play=1.
Ray Dalio on a "Goldilocks" economy:
WE ARE IN THIS GOLDILOCKS PERIOD RIGHT NOW IN WHICH WE HAVE HAD A BEAUTIFUL DELEVERAGING, THE INFLATION ISN'T A PROBLEM, GROWTH IS GOOD, EVERYTHING IS PRETTY GOOD WITH A BIG JOLT OF STIMULATION COMING FROM THE CHANGES IN TAX LAWS AND SUCH THAT IS GOING TO AT THE PART OF THE CYCLE WHERE WE'RE AT THE LATER PART OF THE CYCLE, IF YOU LOOK AT THE OPERATING RATES AND YOU LOOK AT THE GDP GAP AND MEASURES, WE'RE GOING TO HAVE A JOLT OF STIMULATION INTO THAT AND THERE'S A LOT OF CASH ON THE SIDELINES. I DON'T MEAN JUST INVESTOR CASH – I THINK BANKS HAVE A LOT OF CASH, CORPORATIONS HAVE A LOT OF CASH. SO WE'RE GOING TO BE, I THINK, INUNDATED WITH CASH. I THINK THAT'S GOING TO PRODUCE A LOT OF STIMULATION AND I THINK PERHAPS A MARKET BLOWOFF. IN OTHER WORDS, WE'RE IN A SITUATION WHERE IF YOU'RE HOLDING CASH, YOU'RE GOING TO FEEL PRETTY STUPID.
Ray Dalio on Elon Musk:
SO I DON'T KNOW THE PARTICULARS OF THE DEAL, BUT IF IT'S JUST AS YOU'RE TELLING ME, I THINK IT'S FABULOUS – ALSO, THE MAN IS TESLA. I MEAN, IT'S HIS DREAM – HE'S BUILT THE DREAM. IT'S YOUR CHOICE – YOU DON'T HAVE TO INVEST IN IT… DON'T INVEST IN IT! OR SHORT IT! DO WHATEVER YOU WANT TO DO. THE QUESTION IS, WHAT IS HIS INCENTIVES? SO I MEAN, ALL THE CRITIQUING ABOUT THAT – YOU KNOW, SHORT IT!
Ray Dalio on a bear market:
IT JUST TAKES A LITTLE CHANGE IN INTEREST RATES TO HAVE A BEAR MARKET. AND SO THE THINGS THAT WE LOOK AT ARE – IN TERMS OF TIGHTENING MONETARY POLICY, WILL IT BE TIGHTER THAN IS DISCOUNTED IN THE CURVE, RIGHT? WE HAVE A VERY SMALL AMOUNT OF TIGHTENING THAT IS BUILT INTO THE CURVE. IF IT IS GREATER AND INTEREST RATES RISE GREATER, THAT CAN AFFECT ALL ASSET PRICES.
Ray Dalio on a downturn market:
I'M NOT WORRIED ABOUT AN IMMEDIATE DOWNTURN, BUT I WOULD SAY IF WE WERE TO LOOK TWO YEARS FORWARD, PROBABLY RIGHT BEFORE THE NEXT PRESIDENTIAL ELECTION THERE IS A GOOD CHANCE THAT YOU WILL HAVE A DOWNTURN. AND IF YOU HAVE A DOWNTURN FOR THAT SEGMENT, I'M WORRIED ABOUT HOW WE WILL BE WITH EACH OTHER IN THAT ELEMENT OF COHESIVENESS.
Ray Dalio on a pre-election downturn:
I THINK IT WOULD MAKE GREATER POLARITY. I THINK THE LEFT WILL BE MORE LEFT AND THE RIGHT WILL BE MORE RIGHT. AND I THINK THIS ISN'T JUST AN AMERICAN PHENOMENON. IF MACRON DOESN'T DO WELL IN FRANCE WE'LL HAVE A CHOICE BETWEEN TWO EXTREMES.
Ray Dalio on bitcoin:
DALIO: WELL, IT WAS A BUBBLE IT'S A BUBBLE.
ANDREW ROSS SORKIN: IT'S STILL A BUBBLE?
DALIO: YOU KNOW WHAT BUBBLES ARE. THEY HAVE THEIR OWN DYNAMIC. A PERFECTLY GOOD MARKET CAN BE IN A BUBBLE. DOTCOM BUBBLE. WE HAD INTERNET COMPANIES AND SO ON. THEY HAD A BUBBLE AND THEN THEY HAD A BUST. I DON'T TRADE DOT. I DON'T KNOW HOW TO VALUE IT. I BELIEVE IN THE BLOCKCHAIN TECHNOLOGY, I THINK IT'S GREAT. BUT THAT NOTION OF HOW TO TRADE IT AND VALUE IT IS NOT MY EXPERTISE, SO I'LL KEEP MY MOUTH SHUT. BUT THAT WAS A BUBBLE. IT LOOKED LIKE A BUBBLE.
Dan Schulman, Paypal CEO
Video from CNBC: https://www.cnbc.com/video/2018/01/23/paypal-ceo-were-seeing-a-massive-move-towards-mobile-payments.html?play=1.
Dan Schulman on mobile payments:
I THINK THE HOLIDAY PERIOD WAS A STRONG PERIOD IN GENERAL ACROSS THE WORLD, AND I THINK WHAT WAS REALLY INTERESTING IN THE HOLIDAY PERIOD WAS THE ADVENT OF MOBILE PAYMENTS. YOU SAW FOR THE FIRST TIME MOBILE PAYMENTS ACTUALLY MORE THAN HALF OF ALL OF eCOMMERCE PAYMENTS. AND FOR THE FIRST TIME EVER eCOMMERCE WAS OVER 50% OF THE SALES IN THE HOLIDAY PERIOD. SO LAST YEAR YOU SAW THAT JUST ON BLACK FRIDAY WEEKEND.
Dan Schulman on Paypal and Venmo:
WE'RE JUST STARTING TO MONETIZE IT NOW BY ALLOWING VENMO USERS TO START TO BASICALLY CLICK ON ANY BUTTON WHERE PAYPAL IS ACCEPTED AND THEN MAKE A PURCHASE THAT WAY. SO JUST LIKE PAYPAL STARTED OFF AS PEER TO PEER, THAT'S THE EXACT SAME METAPHOR FOR VENMO. WE STARTED MONETIZING PAYPAL THROUGH MERCHANTS. WE'RE DOING EXACTLY THE SAME THING WITH VENMO.
Dan Schulman on bitcoin as a commoditiy:
FOR SOMETHING TO BE A LEGITIMATE CURRENCY, IT NEEDS STABILITY ON IT. REALLY TODAY BITCOIN AND THESE OTHERS ARE MORE LIKE COMMODITIES. IT'S MORE LIKE TRADING IN GOLD. BUT THE UNDERLYING BLOCKCHAIN PROTOCOL ACTUALLY HAS THE CHANCE TO FUNDAMENTALLY CHANGE THE WAY WE THINK ABOUT TRUST TYPE OF APPLICATIONS, CONTRACTS, PAYMENTS, THAT KIND OF THING. AND I THINK THAT COULD BE ONE OF THE BIGGEST BREAKTHROUGHS THAT WE'VE SEEN BUT, AGAIN, IT'S AN EXPERIMENT I GIVE THAT MAYBE A 50% SHOT OF HAPPENING, MAYBE A 20% SHOT THAT THE WHOLE THING COLLAPSES. BUT IF IT DOES SUCCEED, IT COULD BRING MASSIVE CHANGE.
Dan Schulman on bitcoin and cryptocurrencies:
I THINK WHAT'S HAPPENING WITH CRYPTOCURRENCIES AND BLOCKCHAIN IS A GRAND EXPERIMENT THAT'S HAPPENING RIGHT NOW. AND IF IT'S SUCCESSFUL, IT COULD BE ONE OF THE GREATEST SHIFTS IN HOW YOU THINK ABOUT THE TRANSFER OF VALUE AND DISTRIBUTED TRUST, AND THAT'S WHAT BLOCKCHAIN IS ABOUT. BUT THE CRYPTOCURRENCIES ON TOP OF THAT RIGHT NOW, WHETHER IT BE A BITCOIN, ETHEREUM, RIPPLE, ANY OF THOSE, RIGHT NOW THEY'RE QUITE VOLATILE. THEY GO UP AND DOWN, SOMETIMES 10% IN A DAY. IF YOU'RE A RETAILER AND YOUR MARGIN IS 2 TO 5% AND YOU ACCEPT BITCOIN AND IT GOES DOWN 10% THAT DAY, YOU'VE LOST MONEY ON EVERY TRANSACTION THAT YOU'VE MADE.
David Rubenstein, The Carlyle Group Co-Founder
Videos from CNBC: https://www.cnbc.com/video/2018/01/23/david-rebenstein-from-davos-.html?play=1 & https://www.cnbc.com/video/2018/01/23/david-rubenstein-i-think-wed-be-lucky-and-happy-to-get-close-to-3-percent-gdp.html?play=1.
David Rubenstein on his title change:
I DON'T HAVE TO DO THE EARNINGS CALL. THE OTHER CO-CEO AND I WERE 68 YEARS OLD. WE THOUGHT BEFORE THERE WAS A 7 ATTACHED TO OUR NAMES TO STEP BACK AND LET THE YOUNGER PEOPLE BE THE CO-CEOs. BILL CONWAY AND I ARE THE LARGEST INVESTORS IN THE FIRM. WERE GOING TO DO WHAT WE CAN TO HELP THE FIRM BUT WE HAVE TWO GOOD CO-CEOs NOW AND THEY'RE GOING TO GO A GREAT JOB.
David Rubenstein on his Carlyle Group involvement:
I'M PRETTY INVOLVED. IF YOU OWNED AS MUCH OF THE FIRM AS I OWN, YOU WOULD WANT TO BE INVOLVED. SO, I'M NOT GOING TO SIT ON THE BEACH. BUT I DO THIS BECAUSE I LOVE IT. IT'S NOT WORK. IF IT WAS WORK, IT'D BE DIFFERENT, BUT I LOVE WHAT I'M DOING. WHEN YOU CREATE A FIRM FROM WHOLE CLOTH 30 YEARS AGO AND IT'S GROWN TO BE A LARGE FIRM, YOU HAVE A LOT OF PRIDE IN IT, YOU WANT TO SEE IT SUCCEED. SO I'M GOING TO DO WHAT IN CAN TO HELP THE CO-CEOS, AND HELP WITH OUR INVESTOR RELATIONS AND OTHER THINGS.
David Rubenstein on private equity holds:
PRIVATE EQUITY FIRMS TEND TO HOLD ON TO THINGS FOR ABOUT FOUR TO SIX YEARS, SOMETHING LIKE. THAT THE LAW COULD CHANGE IN FOUR YEARS. IT WILL CHANGE, WHETHER THE CONGRESS CONCLUDES THAT THEY SHOULD KEEP THE STANDARD OF 30% OF EBITA, WE'LL FIND OUT IN FOUR YEARS. BUT RIGHT THAT'S NOT OUR MAJOR CONCERN. OUR MAJOR CONCERN IS FINDING DEALS THAT ARE AFFORDBALE. PRICES ARE HIGH AND WE NEED TO MAKE SURE WE'RE NOT OVERPAYING FOR THINGS THAT WE BUY.
David Rubenstein on returns:
WHEN YOU LOOK AT INVESTOR SURVEYS OF WHAT THEY EXPECT RETURNS ARE GOING TO BE FROM ALL ASSET CLASSES, CONSISTENTLY THEY THINK PRIVATE EQUITY WILL OUT PERFORM EVERY ASSET CLASS OVER THE NEXT FIVE YEARS OR TEN YEARS. THE RATE OF RETURN MIGHT BE SLIGHTLY LOWER THAN IT WAS 20 YEARS AGO OR 10 YEARS AGO, BUT STILL THERE'S A BIG GAP BETWEEN THAT AND PUBLIC EQUITIES.
David Rubenstein on infrastructure:
OUR INFRASTRUCTURE IS TERRIBLE. WE HAVEN'T BUILT A NEW AIRPORT IN 22 YEARS IN OUR COUNTRY, AND THE ROADS ARE CRUMBLING. IT'S AMAZING TO ME WHEN YOU GO TO NEW YORK CITY, YOU SEE THE GREAT NEW SKYSCRAPERS, AND THE GREAT NEW BILLIONAIRE APARTMENTS, BUT THE ROADS ON THEM ARE CRUMBLING. YOU DRIVE TO THESE PLACES AND BUMP UP AND DOWN AND THEN YOU GET INTO THESE WONDERFUL BUILDINGS.
WHY WE HAVEN'T FIXED THE INFRASTRUCTURE, I DON'T REALLY KNOW. I THINK YOU SHOULD KNOW THAT 90% OF INFRASTRUCTURE IS REALLY STATE AND LOCAL. SO THE FEDERAL GOVERNMENT, IF IT DOES SOMETHING WOULD BE HELPFUL, BUT STATE AND LOCAL GOVERNMENTS AND AUTHORITIES ARE GOING TO HAVE MORE IMPACT AND I THINK THEY ARE DOING THINGS TO MAKE IT EASIER TO HAVE PUBLIC/PRIVATE PARTNERSHIPS.
David Rubenstein on President Trump at Davos:
IF PRESIDENT TRUMP CAME HERE I SUSPECT THIS MESSAGE IS ONE THAT WILL BE REASONABLY WELL RECEIVED. NOW YOU CAN'T EXPECT EVERYBODY HERE TO LOVE EVERYTHING HE SAYS, BUT I THINK HE'S GONNA HAVE A MESSAGE THAT WILL BE REASONABLY WELL RECEIVED.
David Rubenstein on the GDP forecast:
I THINK IT'S UNLIKELY WE'RE GOING TO HAVE 3% GROWTH IN AN ECONOMY OF OUR SIZE FOR A TWO, THREE, FOUR YEAR PERIOD OF TIME. IF SO, IT WOULD BE VERY HARD FOR ME TO BELIEVE THAT. YOU DON'T HAVE THAT MANY PEOPLE IN THE WORK FORCE RELATIVE TO WHAT WE'VE HAD HISTORICALLY. YOU HAVE AN AGING POPULATION TO THINK THAT AN ECONOMY OF $20 TRILLION CAN GROW AT 3% OR 3.5% CONSISTENTLY IS HARD TO BELIEVE.
Marc Benioff, Salesforce Chairman and CEO
Marc Benioff on corporate culture:
I DON'T THINK IT IS FUNDAMENTALLY BROKEN, I JUST THINK THAT YOU HAVE TWO WORLDS. ONE WORLD IS COMPANIES THAT ARE PURPOSE DRIVEN AND CEOs THAT ARE PURPOSE DRIVEN THERE IS CLARITY ON WHAT IS IT YOU REALLY WANT? WHAT DO YOU WANT TO ACHIEVE? WHAT IS REALLY IMPORTANT TO YOU? ARE YOU FOCUSED ON THE FUNDAMENTAL TRUST YOU HAVE WITH YOUR CUSTOMERS? THEN YOU HAVE A BIFURCATION WHERE YOU HAVE COMPANIES OR CEOs WHO MAYBE ARE ONLY FOCUSED ON THE PRODUCT.
Marc Benioff on regulation:
ANDREW ROSS SORKIN: HOW WOULD YOU REGULATE A COMPANY LIKE FACEBOOK?
BENIOFF: YOU'D DO IT EXACTLY THE SAME WAY YOU REGULATED THE CIGARETTE INDUSTRY. HERE'S A PRODUCT CIGARETTES THEYRE ADDICTIVE. YOU KNOW, THEY'RE NOT GOOD FOR YOU. MAYBE THERE IS ALL KINDS OF DIFFERENT FORCES TRYING TO GET YOU TO DO CERTAIN THINGS THERE'S A LOT OF PARALLELS.
SORKIN: IS THAT HOW YOU FEEL ABOUT SOCIAL MEDIA?
BENIOFF: FOR THE MOST PART, YEAH.
SORKIN: MEANING, THINKING ABOUT IT AS LIKE A CIGARETTE IN THAT KIND OF ADDICTIVE WAY?
BENIOFF: I THINK THAT FOR SURE TECHNOLOGY HAS ADDICTIVE QUALITIES THAT WE HAVE TO ADDRESS AND THAT PRODUCT DESIGNERS ARE WORKING TO MAKE THOSE PRODUCTS MORE ADDICTIVE AND WE NEED TO REIGN THAT BACK AS MUCH AS POSSIBLE.
Marc Benioff on the tax plan:
I DON'T THINK IT WILL HAVE ANY KIND OF MATERIAL IMPACT. I THINK THE BIGGEST THING IS THAT THERE IS A HUGE AMOUNT OF EXUBERANCE WITH CEOs AROUND THE TAX PLAN SO THAT -- THAT KIND OF WHAT I WOULD CALL ECONOMIC FREIGHT TRAIN IS GOING TO CONTINUE.
Marc Benioff on Davos as a "measurement":
EVERY CEO IS BULLISH, AND ONE OF THE THINGS ABOUT DAVOS IS IT TENDS TO BE A MEASUREMENT OF WHERE THINGS ARE. I MEAN, YOU AND I WERE BOTH HERE IN 2008, 2009, 2010 AND YOU CAN SEE WHEN EVERYBODY IS WALKING AROUND WITH THEIR HEAD DOWN. NO ONE IS WALKING AROUND WITH THEIR HEAD DOWN. PEOPLE ARE EXCITED AND THEY'RE FEELING GOOD ABOUT THE WORLD.
Marc Benioff on what he wants President Trump to say at Davos:
ANDREW ROSS SORKIN: PRESIDENT TRUMP IS GOING TO BE HERE ON FRIDAY. WHAT DO YOU WANT TO HEAR HIM SAY?
BENIOFF: WELL I WANT HIM TO BRING EVERYBODY TOGETHER IN A POSITIVE WAY. I THINK THIS IS REALLY IMPORTANT. I THINK IT'S REALLY IMPORTANT THAT IT'S NOT ABOUT ISOLATION, BUT IT'S ABOUT INTEGRATION, AND THAT HE DOES VERY MUCH WHAT PRESIDENT XI DID LAST YEAR, WHICH IS KIND OF A MAJOR UNIFYING SPEECH THAT SHOWS THE UNITED STATES' ROLE IN THE WORLD, SETTING VALUES AND HAS A CLEAR NORTH STAR ON WHERE WE'RE ALL GOING.
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