Buffett Watch

  Tuesday, 18 Sep 2018 | 11:25 AM ET

Warren Buffett and Jack Bogle agree on the formula for long-term success: 'Buy and hold' 

Legendary investors Warren Buffett, 88, and John C. "Jack" Bogle, 89, agree on the key to successful investing: Buy and hold the stock market for the long term.

"If you hold the stock market, you will grow with America," Bogle, founder of The Vanguard Group, said on CNBC's "Power Lunch."

In the long run, there is a high correlation between the stock market and U.S. economic growth, he said, so, regardless the economic climate, "Stay the course. Don't let these changes in the market, even the big one [like the financial crisis] … change your mind and never, never, never be in or out of the market. Always be in at a certain level."

If you try to trade in and out of the market, "your emotions will defeat you totally," Bogle added. "Short-term betting is not a good way to go."

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  Monday, 17 Sep 2018 | 9:01 PM ET

These are the 25 best start-ups to work for in India, according to LinkedIn

India is a country renowned for its bustling tech start-up scene. But it's the hospitality industry that's making waves with workers, according to LinkedIn's list of top start-ups in India to work for in 2018.

Five-year-old hospitality company OYO Rooms stole pole position in the rankings this year after building a team of loyal staff in India and beyond. Dubbed "OYOpreneurs," employees are encouraged from day one to embrace a sense of ownership in the business and help shape the firm as it rapidly expands.

Elsewhere, transportation, fitness and insurance proved they were among the industries ripe for disruption in the fast-evolving country. CNBC Make It takes a look at the full list of the 25 most attractive start-ups in India right now.

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  Friday, 14 Sep 2018 | 2:23 PM ET

After the crisis, a new generation puts its trust in tech over traditional banks

Posted ByKate Rooney
Music fans take selfies during day 2 of the 2014 Coachella Valley Music & Arts Festival at the Empire Polo Club on April 12, 2014 in Indio, California.
Getty Images

Fintech may be one of the few industries looking back fondly at what happened to Wall Street after 2008.

The chaos and disruption of the credit crisis instilled lack of trust in existing banks and brought on new regulations and the rise of technologies that would allow scrappy Silicon Valley start-ups to reshape consumer finance.

These new financial technology companies have made serious competitive inroads in areas banks have backed away from, and billions of dollars in venture capital money has followed.

A key reason fintech companies have flourished, analysts say, is a lingering distrust in banks.

Ten years ago the first wave of the millennial generation was settling into early adulthood just as the economy dipped into the Great Recession. Memories of foreclosed homes and savings lost in a Wall Street-fueled crisis continue to influence where they put their money.

"What that underscored for people is that banks can't be trusted, and your money is only as safe as the government allows you to believe," said Fundstrat founder and managing partner Tom Lee, who worked at J.P. Morgan in 2008. "That's why millennials today have so little trust in banks, because of what their parents went through."

More than half the world's population is under 30 right now, according to the World Economic Forum, and 10 years after the crisis, they're still wary of banks. Last year, 45.3 percent of respondents to WEF's Global Shapers Survey said they "disagree" with the statement that they trust banks to be fair and honest. Only 28 percent of the more than 30,000 millennials surveyed said they agree.

The skepticism isn't reserved for young people. Shareholders and regulators still want to see that the banks are in check, and questions of solvency and compliance come up consistently on bank earnings conference calls.

"Every quarter, every year for a decade banks have to earn back the trust that was lost from the financial crisis," said Mike Mayo, Wells Fargo's head of U.S. large-cap bank research, who worked at Deutsche Bank when Lehman Brothers went under. "The financial crisis was terrible for the industry's reputation of trust."

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  Friday, 14 Sep 2018 | 7:56 AM ET

The next crisis is still lurking in the financial system: 'We never addressed the root cause'

Posted ByJeff Cox

In a world swimming in debt, the next crisis is likely to bear at least a passing resemblance to the last one. The good news is that day seems to be a ways off.

Not that anyone's in a hurry, but there are few obvious signs of a situation akin to the 2008 meltdown on the horizon. The financial system is well-capitalized and operating with lower leverage and risk-taking than in at least a generation or two. Economic pillars remain strong, the health of corporate America has rarely been better and new buffers put in place have been effective at absorbing shocks.

In fact, if anything it's too quiet. That almost always has been the recipe for a good crisis.

"There was abundant liquidity in the system in 2006, too," said Danielle DiMartino Booth, CEO and director of intelligence for Quill Intelligence, a research and analytics firm. She also served as advisor to former Dallas Federal Reserve President Richard Fisher during the financial crisis, so she had a front-row seat to how it unfolded.

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  Friday, 14 Sep 2018 | 10:27 AM ET

Warren Buffett's 'simple rule' for investing during the financial crisis—you can still use it today

Posted ByAli Montag

In the fall of 2008, global markets were failing. Lehman Brothers, an investment bank with $600 billion in assets, filed for bankruptcy protection on Sept. 15 of that year, an inflection point in the economic slowdown that brought unemployment rates as high as 10 percent.

Two weeks later, during a single day on Sept. 29, the U.S. stock market lost $1.2 trillion in value as the Dow dropped 778 points, nearly 7 percent.

"You just felt like the world was unraveling," a senior equity trader named Ryan Larson told The New York Times that day. "People started to sell and they sold hard. It didn't matter what you had — you sold."

But there was one big investor who had a different outlook: Berkshire Hathaway CEO Warren Buffett.

In fact, Buffett was buying.

"I've been buying American stocks," Buffett wrote in a an opinion piece for The New York Times on Oct. 16, 2008. Berkshire Hathaway also made big investments during the crisis, backing General Electric and Goldman Sachs.

Buffett understood the severity of the crisis; he told CNBC that year it was like an "economic Pearl Harbor." So why was he buying stocks that were rapidly falling in price when everyone else was socking cash under their pillow?

"A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful," Buffett wrote in the Times.

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  Thursday, 13 Sep 2018 | 8:45 AM ET

Jack Bogle reveals the biggest risk of the next financial crisis and why he's still investing 

This week marks the 10th anniversary of the collapse of Lehman Brothers and the start of the Great Recession. And some experts say that another financial crisis is inevitable.

As legendary investor Jack Bogle told CNBC's "Power Lunch" on Wednesday, "There are always blind spots or, as I have said, the fog of the stock market: Nobody really knows what's going on."

Thanks to the 2008 crisis, "there are risks that we know," the founder of The Vanguard Group added, "but there are risks that we don't know even exist. And that's the problem. Every crisis is different. Every bear market is different."

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  Wednesday, 12 Sep 2018 | 7:51 AM ET

Warren Buffett on why bubbles happen: People see neighbors 'dumber than they are' getting rich

Posted ByTae Kim

Warren Buffett warns that another financial crisis is inevitable.

Buffett was asked by CNBC's Andrew Ross Sorkin if he is worried another crisis will happen again.

"Well there will be one sometime," Buffett said in an interview for CNBC's "Crisis on Wall Street: The Week That Shook the World" documentary. The documentary airs Wednesday night at 10 p.m. ET/PT.

This week marks the 10th anniversary of Lehman Brothers' bankruptcy, which many investors regard as the seminal event of the financial crisis.

The Oracle of Omaha explained another bubble is unavoidable due to human nature, jealously and greed.

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  Monday, 10 Sep 2018 | 4:53 PM ET

Warren Buffett's Berkshire Hathaway sells more of its stake in oil refiner Phillips 66

Posted ByLiz Moyer
A Phillips 66 logo is seen on a gas pump as a car is filled a Beck's station in Princeton, Illinois.
Daniel Acker | Bloomberg | Getty Images
A Phillips 66 logo is seen on a gas pump as a car is filled a Beck's station in Princeton, Illinois.

Berkshire Hathaway continues to unload its stake in Phillips 66, disclosing Monday the sale of another 36 percent of its holdings in the stock since the end of the second quarter.

In a filing with the Securities and Exchange Commission, Warren Buffett's conglomerate said it held 22.186 million shares, down around 12.5 million from holdings reported as of the end of June. In the second quarter, Berkshire unloaded 24 percent of its stake. It cut more than 40 percent of its shares in the energy company in the first quarter, when it sold 35 million shares back to Phillips 66 to bring its holding below 10 percent.

At the time, Berkshire said it would continue to be a long-term holder of Phillips 66.

The most recent move reduces Berkshire's stake to 4.8 percent of Phillips 66, from 7.5 percent.

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  Monday, 10 Sep 2018 | 12:28 PM ET

For about $20 million, you could be Warren Buffett's landlord

Posted ByLiz Moyer

For an asking price of $20 million, someone could become Warren Buffett's landlord.

The 15-story Kiewit Plaza in Omaha, Nebraska, recently went up for sale, and that could be the going price, according to Omaha.com. The 176,000-square-foot office tower is home to Buffett's Berkshire Hathaway as well as Kiewit, a construction and mining company that built the structure in 1961. Berkshire takes up a floor of the building. It was previously reported that daughter Susan Buffett's Sherwood Foundation was moving out of the building to locate elsewhere.

Kiewit, which has 20,000 employees, is building a new headquarters in another part of the city and will move out in 2021, the report said.

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  Monday, 10 Sep 2018 | 12:17 PM ET

Self-made billionaire Jack Ma: I will do this one thing better than Bill Gates 

Posted ByZameena Mejia

Jack Ma, one of the richest men in China, announced last week that he will step down from the company he founded to focus on philanthropy. Today, he announced this transition will happen within the next year and that he will hand his chairman role to Daniel Zhang, currently Alibaba's chief executive.

A former educator, Ma made this most recent announcement Monday — the day that marks his 54th birthday and a national Chinese holiday known as Teacher's day. Ma reportedly is known as "Teacher Ma" within Alibaba.

Ma founded his Jack Ma foundation in 2014, inspired in part by Bill Gates. His organization was created to make improvements in rural China's educational system.

"I think education is so critical for the future," Ma said last week. "I learned so much from the Alibaba journey in the past 19 years, it's my responsibility to share."

"I miss teaching very much. I came to the business field by accident," continued Ma, a man who was rejected from more than 30 jobs after college, including a job at KFC, in the years before starting Alibaba. "I think some day, very soon, I will go back to teaching and education. This is something I think I can do much better than being CEO of Alibaba."

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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.