Buffett Watch

  Sunday, 21 Apr 2019 | 9:00 AM ET

7 quirky ways the super rich save money

Even the rich and famous appreciate a good bargain. Pop star Lady Gaga, for example, likes to use coupons at the grocery store. Billionaire Mark Zuckerberg still prefers to drive cheaper cars.

Here are the quirky, frugal habits of seven other millionaires and billionaires.

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  Sunday, 21 Apr 2019 | 9:00 AM ET

Charlie Munger praises this 1 skill of Warren Buffett's—without it, 'you won't get very far in life'

Without a doubt, Charlie Munger and Warren Buffett are a match made in heaven. After working together for more than 40 years, the two legendary investors still hold plenty of respect and admiration for one another.

As vice chairman of Berkshire Hathaway, Munger says there's one quality of Buffett's that he holds in especially high esteem: His ability to be a lifelong "learning machine."

"If you take Warren Buffett and watched him with a time clock, I would say half of all the time he spends is sitting on his ass and reading," Munger said in his 2007 commencement speech at the University of Southern California.

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  Wednesday, 17 Apr 2019 | 12:42 PM ET

What impressed Warren Buffett when he first met LeBron James—and it wasn't his basketball skills

Posted BySarah Berger

LeBron James is a legend on the basketball court, but when billionaire investor Warren Buffett first met James, the NBA star's athletic prowess wasn't the only thing that impressed him.

The two met over a decade ago while filming a skit for Berkshire Hathaway's annual meeting, Buffett writes in an article honoring James's spot as one of Time's 100 Most Influential People of 2019. In the video, Buffet beats James at basketball, "so it was clearly a comedy," Buffett says in Time.

"We had a good time, and since that day, I've been impressed with his leadership skills, his sharp mind and his ability to stay grounded," Buffet writes.

"People in LeBron's position get tugged in different directions and have a lot of chances to make bad decisions. He's kept his head, and that's not easy."

It's not the first time Buffett has complimented his friend. He told USA Today that James has a "money mind" and praised his business savvy to Cleveland.com.

"He's smart about business, but he's just a smart guy," Buffett said. "I noticed that the first time I met him... And you know he doesn't miss anything."

And the feeling is mutual. In 2014, James instagrammed a photo of Warren and himself at a Cavaliers game with the caption, "Always good having u in town and seeing u Uncle Warren!"

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  Tuesday, 16 Apr 2019 | 3:49 PM ET

If you invested $1,000 in Netflix in 2007, here's how much you'd have now

All eyes are on video-streaming giant Netflix, which faces new competition from Disney's highly anticipated streaming platform, Disney+, as it reported itsfirst-quarter earnings Tuesday.

Its stock fell more than 1% in after-hours trading, after closing with a share price around $360.

Still, investing in early 2007, when Netflix first began streaming, would have proved to be a good bet. A $1,000 investment made on Jan. 15, 2007, would be worth more than $110,000 as of midday April 16, 2019, according to CNBC calculations, for a total return of about 10,000%. Over the same period, the S&P 500 was up just over 100%.

While the company's stock took a slight dip after hours Tuesday, following its earnings release, it reported quarterly revenue that beat estimates and shares are up more than 34 percent as of Tuesday's close.

Many investors relayed optimistic messages early this week. In a note, analysts at banking firm KeyBanc seemed skeptical that new streaming competition could pose a significant threat.

CNBC: Netflix stock as of April 16, 2019

"While other services may carve out valuable add-on positions, we do not expect the launch of new services from Apple, Disney, AT&T, or others to meaningfully impact Netflix," they said. "We continue to view Netflix's strategic positioning very favorably."

Investment banking company Deutsche Bank raised its rating on Netflix shares from "hold" to "buy" early Tuesday, saying the service is becoming more like a "platform" every day.

"Platform status brings network effects not available to peers and competitors," analyst Bryan Kraft wrote in a note. "Specifically, this is making Netflix even more of a go-to destination when consumers want to watch something, and it means having Netflix is becoming more of a cultural necessity for people around the world. It also makes Netflix a magnet for talent."

That means "consumers stay captive within the Netflix walled garden for significant amounts of time," Kraft added. "Aside from pay TV, which is losing audience share, there are no other competing platforms that approach Netflix's reach."

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  Tuesday, 16 Apr 2019 | 8:00 AM ET

If you invested $1,000 in Disney 10 years ago, here's how much you'd have now

Media giant Disney announced its new video streaming platform and Netflix competitor, Disney+, last week. Its stock went up by as much as as 12% and enjoyed its best day since May 2009.

Its current stock price is hovering around $130 a share.

And if you invested in the company 10 years ago, you would have made a profit: A $1,000 investment on April 15, 2009, would be worth more than $7,600 as of April 15, 2019, a total return over 660%, according to CNBC calculations. Over the same period of time, the S&P 500 was up 240%.

Disney's chairman and chief executive officer, Bob Iger, told CNBC that he was "optimistic" about the streaming service "because of the content, because of the user interface and because of the price."

CNBC: Disney stock as of April 15, 2019

Disney+, which will officially begin streaming mid-November, will start at $6.99 a month or around $70 a year. Disney plans to use it to showcase its popular material, including the "Star Wars" franchise. The company also expects to spend about $1 billion on original content in 2020 and $2 billion by 2024.

Jim Cramer, host of CNBC's "Mad Money," was excited about the company's potential: "How can you not take it? It's a reasonable price. You have an unbelievable library. We have all bought these. ... I've bought every single property of Disney. [For] my kids, it just was kind of a rite of passage," he said. Iger "has transformed this company back to a growth stock in a way that people are saying, 'Finally, I've got one with earnings, with a balance sheet, with a great CEO; I don't have to risk it anymore.' That's what this story is. .... Wow. Wow. Big."

Still, while Disney's stock has shot up recently and has largely performed well over the years, any individual stock can over- or underperform andpast returns do not predict future results.

Some analysts believe Disney's goals are too lofty and that it will be difficult for their streaming service to disrupt major players like Amazon and Netflix. "We do not view Disney+ as a strong alternative to Netflix," Matthew Thornton, a tech analyst at bank holding company Suntrust, said in a note. "Disney+ features family content, while Netflix offers a much broader range of content with the majority of the most-searched content on the platform."

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  Tuesday, 16 Apr 2019 | 7:00 AM ET

Tony Robbins says these are the 3 biggest reasons investors fail

Posted ByBarbara Booth

Tony Robbins, renowned life and business strategist and New York Times bestselling author, has dedicated himself to spreading personal finance literacy across America. As a member of CNBC's Financial Wellness Advisory Council, he's continuing to share his insights and key strategies to help improve Americans' financial future.

Throughout his career, Robbins has had the opportunity to interview some of the smartest investors on the planet, including Warren Buffett, Carl Icahn, and Ray Dalio. When it comes to investing, the one mantra they tell Robbins over and over is that most investors fail simply for psychological reasons. In other words, Robbins says, our own brain can be our biggest liability.

According to Robbins, these are the three biggest mistakes that will derail any investor's success.

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  Monday, 15 Apr 2019 | 9:00 AM ET

Warren Buffett wants young people to know: Ignoring this is like 'leaving a car out in hailstorms'

It's no surprise that Warren Buffett, the most successful investor in history, came to be known as "The Oracle of Omaha." But the Berkshire Hathaway CEO isn't just a whiz at analyzing businesses, he also has a knack for imparting the most essential wisdom in a manner so simple that even a child can understand.

In my new book, "Getting There: A Book of Mentors," 30 leaders — including Buffett himself — share their unguarded stories and secrets to navigating the rocky road to the top.

In his essay for "Getting There," Buffett elaborates on a message that he thinks "is very important to get across to younger people": Take care of your mind and body.

Sounds simple, right?

But Buffett takes it a step further by offering an analogy: "Let's say that I offer to buy you the car of your dreams. You can pick out any car that you want, and then when you get out of class this afternoon, that car will be waiting for you at home."

As with most things in life, Buffett says there's just one catch: It's the only car you're ever going to get...in your entire life.

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  Sunday, 14 Apr 2019 | 9:00 AM ET

Bill Gates: These 5 books are so good, 'they kept me up reading long past' bedtime

We all know that the world's most successful millionaires, from Jeff Bezos to Tim Cook, prioritize their sleep.

Microsoft co-founder Bill Gates tries to get in seven hours of sleep a night. It helps him stay creative, he once told The Seattle Times.

Gates' bedtime routine involves one hour of reading before going to sleep. "Like anyone who loves books, if you get into a good book, it's hard to go to sleep," he said in the interview.

So if you're looking for book recommendations, Gates is your guy. In fact, the billionaire shared a few of his favorites back in 2016. "These five books kept me up long past when I should have gone to sleep," he said in a tweet, which included a video of the books.

Here's the full list:

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  Friday, 12 Apr 2019 | 2:37 PM ET

If you invested $1,000 in JP Morgan 10 years ago, here's how much you'd have now

J.P. Morgan Chase, the largest bank in the U.S., reported better-than-expected first-quarter earnings Friday. In its release, the company said the "impact of higher rates" boosted its results, as well as its net interest income.

Its stock is up 4.5% Friday, with the price hovering around $110.

If you invested in J.P. Morgan 10 years ago that decision would have paid off: Per CNBC calculations, a $1,000 investment on April 12, 2009, would be worth just over $4,200 as of April 12, 2019, a total return of about 326%. In the same time frame, the S&P 500 was up by 315%.

The company's profit rose 5% to $9.18 billion, or about $2.65 a share. Analysts' average estimate was $2.35 a share. Revenue also rose 5% percent to $29.9 billion, exceeding analysts' estimates by about $1.5 billion.

CNBC: J.P. Morgan Chase stock as of April 12, 2019

"We had record revenue and net income, strong performance across each of our major businesses and a more constructive environment," Chief Executive Officer Jamie Dimon said in a statement.

"Even amid some global geopolitical uncertainty, the U.S. economy continues to grow, employment and wages are going up, inflation is moderate, financial markets are healthy and consumer and business confidence remains strong."

Thanks to strong bank earnings overall, in fact, the Dow Jones Industrial Average surged 274 points Friday. The S&P 500 was 0.7% higher and the Nasdaq Composite was up 0.5%.

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  Friday, 12 Apr 2019 | 12:59 PM ET

Warren Buffett thinks Elon Musk has 'room for improvement' as Tesla's CEO

Billionaire investor Warren Buffett offered a performance review for Elon Musk's job as Tesla CEO: "I think he has room for improvement, and he would say the same thing," Buffett told Yahoo Finance of Musk's track record in a recent interview.

And despite the constructive criticism, Buffett, who has been been CEO of Berkshire Hathaway for nearly 50 years, did admit that the tech billionaire is "a remarkable guy."

But Buffett seems to think Musk, who has been CEO of Tesla for a little over a decade, would benefit from being more selective about what he posts on Twitter.

"It's just, some people have a talent for interesting quotes and others have a little bit more of a blocker up there that says 'this could get me into problems,'" Buffett says in the Yahoo Finance interview.

"I just don't see the necessity to communicate [on Twitter]," Buffett adds.

Of course, Buffett is far from a prolific tweeter himself. "I don't even know how to do it," he says in the interview.

Buffett doesn't write his own tweets and despite boasting over 1.5 million followers, has nine posts total since his handle launched in April 2013.

"I just think there's other things in life I want to do than tweet. I am not that desperate for somebody to hear my opinion," Buffett previously told CNBC.

By comparison, Musk's Twitter account has 25.7 million followers and the Tesla CEO has tweeted more than 7,200 times since joining the site in June 2009.

The question about Musk, and Buffett's candid response, come at a time when Musk faces ongoing criticism over his propensity to make controversial statements on Twitter. Musk was recently in federal court facing contempt charges after the Security and Exchange Commission said the Tesla CEO violated the terms of an October 2018 securities fraud settlement stemming from a Musk tweet last August about taking Tesla private.

Tesla did not immediately respond to CNBC Make It's request for comment.

Don't Miss:

Why Warren Buffett's right-hand man, Charlie Munger, wouldn't hire Elon Musk

The life-changing career advice that Warren Buffett gave Charlie Munger

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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 CNBC.com'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.