Here are Cramer's top 4 takeaways from Warren Buffett's 3-hour interview

Key Points
  • Warren Buffett's three-hour interview with CNBC on Monday was a teaching moment for every investor, Jim Cramer says.
  • Here are Cramer's top four takeaways, which include the billionaire investor's views on the stock market versus bonds, Wells Fargo, Apple and more.
Buffett not sitting idle, says Cramer
Buffett not sitting idle, says Cramer

Warren Buffett's three-hour interview with CNBC on Monday was "spellbinding" and a teaching moment for every investor on Wall Street and Main Street, Jim Cramer said Monday.

The "Oracle of Omaha" spent the morning with "Squawk Box" following Saturday's release of his widely read annual letter to Berkshire Hathaway shareholders.

Cramer, who said he watched every minute of Buffett's CNBC appearance, described it as "the most important three hours you're going to get about securities analysis."

Here are Cramer's top four takeaways from the Buffett interview:

1. Buffett will 'make a move' on the market's downturn

The Dow Jones industrial average, and Nasdaq are all lower for the month, but Buffett probably sees the downturn as a buying opportunity, said Cramer.

"Buffett is not just sitting back idly. He feels like he needs to make a move," Cramer said on "Squawk on the Street." "I imagine prices will come down for some time. He will make a move."

During his interview, Buffett said if he had to choose between buying long-term bonds or equities he would "choose equities in a minute."

The billionaire investor said so far this year Berkshire has been a net buyer of stocks, but added his comments did not mean the stock market was going up.

Buffett likes to buy companies "cheaper than they are," Cramer said. "He's not just sitting there saying, 'You know what? I am going to put a lot more money to work in a given sector.'"

2. Buffett comments on Wells Fargo were concerning

On Monday, Buffett reiterated that he has confidence in Wells Fargo CEO Tim Sloan after a slew of negative news surrounding the bank's fake accounts scandal.

Buffett said it seems like Wells has gotten "all the cockroaches out of the kitchen" but wasn't completely sure.

Cramer said it didn't sound like Buffett was super confident.

"This was not the kind of thing which made me say, 'I feel great about Wells,'" Cramer said. "It made me say, 'You know what, they'll get through it.' And that's not the kind of endorsement that I'd like to hear from someone who's the largest shareholder."

Berkshire holds a 9.3 percent stake in Wells Fargo.

Berkshire slightly reduced its holdings in the bank to about 458 million shares at the end of 2017, according to the latest quarterly government filing out earlier this month.

The Wells Fargo stake was worth $27 billion as of Friday's close.

3. Buffett thinks Apple's ecosystem is superior

Buffett's comments reveal that he thinks Apple's ecosystem is superior to others, said Cramer, whose charitable trust owns shares of Apple.

Berkshire's largest stock holdings were detailed in Buffett's annual letter, and Apple is now the company's most-valuable position based on Friday's close. The 165 million Apple shares that Berkshire owns were worth about $29 billion.

During his Monday interview, Buffett said Apple has an extraordinary consumer franchise and a strong ecosystem.

"You are very, very, very locked in, at least psychologically and mentally, to the product you are using. [IPhone] is a very sticky product," Buffett said.

4. Buffett-Bezos-Dimon health-care venture next steps

Buffett believes the most important thing for his mega health-care venture at the moment is selecting the right person to run it, Cramer said.

Buffett said Monday the joint venture with Amazon's Jeff Bezos and J.P. Morgan's Jamie Dimon should have a "top-notch CEO within the year." He added "it has to be someone who really has a grasp on [health care] from every angle."

The three announced last month a venture designed to cut health costs and improve services for their U.S. employees. They hope their companies' sheer sizes will help bring the necessary scale and resources to tackle the health-care system's most pressing issues.

Cramer, the host of "Mad Money," concluded his Buffett analysis by saying: "This is a man who taught for three hours."

Buffett "taught you about tax reform in a way that was pretty much English. He taught you how to invest. He taught that there are certain assets that are not investable."

Here are all the stories on CNBC from Buffett's interview:

Stocks vs bonds, 'I would choose equities in a minute'
'We've bought more Apple than anything else' in the last year
Buffett sees buybacks as an option if Berkshire can't find ways to deploy its big cash stockpile
There are three ways to go broke: 'liquor, ladies and leverage'
I don't think Berkshire should avoid doing business with people who own guns
Bezos, Dimon and I aim for something bigger on health care than just shaving costs
Buffett will tell you which is better, Taco Bell or Chipotle, when they start serving burgers
March Madness contest will double the payout if a Nebraska team wins it all