CNBC EXCLUSIVE INTERVIEW: CNBC EXCLUSIVE TRANSCRIPT: CNBC'S MICHELLE CARUSO-CABRERA INTERVIEWS BILLIONAIRE CARLOS SLIM HELÚ, ON CNBC'S "WALL STREET CRISIS: IS YOUR MONEY SAFE?" TODAY
WHEN: Today, Wednesday, Oct. 29th 8PM-9PM ET
WHERE: CNBC's "Wall Street Crisis: Is Your Money Safe?"
Following is the unofficial transcript of a CNBC EXCLUSIVE interview Billionaire Carlos Slim Helú, on CNBC's "Wall Street Crisis: Is Your Money Safe?" Today.
All references must be sourced to CNBC.
MICHELLE CARUSO-CABRERA: A lot of people look at you as the Warren Buffett of Latin America, that when everybody else is running in panic, you step in and you buy. I have to think that this kind of market, and this kind of economy is one that's suited to your kind of investing. Is that true?
CARLOS SLIM HELÚ: Well, it's a very difficult moment. The problem is the worst I have seen in my life. It's a financial pandemia that is affecting all the world. And I am very worry about the economic consequences, the real economy. Because now we don't have the problem in the financial economy, but it looks like the consequences in the real economy can be very important and I think, as governments and everyone is to work in this direction to avoid, the social consequences of a big problem like this, no?
CARUSO-CABRERA: Is enough being done right now?
SLIM: They are taking too much time, they are acting now in the right direction. I think the idea to buy assets was not very good. The idea to leave Lehman created a problem because people say, "Where where can I put my money?"
CARUSO-CABRERA: So they shouldn't have let Lehman fail?
SLIM: You need to support, not a company, not the stockholders, but the system to avoid a systemic problem.
CARUSO-CABRERA: Still, that's my original question. In '82, when Mexico was falling apart, people were fleeing the country. You were buying assets that nobody else wanted, and at very good prices, that turned out to be very good investments over the long-term. Do you have the same opportunity right now?
SLIM: What we do, most of our investments are in our own companies. The companies we manage are in a healthy situation, but we also manage some investment funds, mostly Mexican paper, now they are more open to invest outside, and these investment funds have a policy that when the markets are very low, they are heavy in equities. And when the markets are very high, doesn't matter that it goes higher, the position of equities is very low. Let's say 35 or 40 percent in equities and when the market is very low, they go 70 or 80 percent in equities, That's why they have moved in these parameters in some ways.
CARUSO-CABRERA: And have they been doing that, as a result of the decline?
SLIM: No, they are, they are liquid with a low position in equities, 40 percent, something like that. And for sure, in the next years and months, especially in the next months or maybe in next the two years, we'll have a higher position in equities.
CARUSO-CABRERA: You recently took a big stake in The New York Times. Everybody knows the bad story. Declining circulation, declining ad revenues. But you obviously see something there, that made it worth investing in.
SLIM: Well, I think it's a great newspaper, the best of the world. A great brand. And when you say newspaper it has been done like this. But the business... It's not a paper factory. It's a news factory. And the news is coming by other media. And they are very advanced, managing content and news in the digital arena. It's not what you think. What's declining is the paper. Not the news. News, information, content -- well, look at the success of Google. The success of many companies that are moving to digital services. And I think The New York Times is doing a good job in the digital information area.
CARUSO-CABRERA: Are they gonna be able to monetize it though?
SLIM: Excuse me?
CARUSO-CABRERA: Are they gonna be able to monetize the digital version?
SLIM: I suppose. I suppose. Well, it's a challenge. And it's a special challenge in this situation. Because it's not a normal situation. It's a difficult situation.
SLIM: We are living today, '29.
CARUSO-CABRERA: 1929, you think?
SLIM: 1930. We are not living '30, '31, '32. We need to avoid '31, '30, '32, '33.
END OF INTERVIEW SEGMENT -- MORE TOMORROW ON "SQUAWK ON THE STREET"
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