Jan 12, 2018|
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
If you're on the go you can still keep up with the financial exchange on the I heart radio lap available on both your phone and tablet. Just search the financial exchange needing your individual segments or full shows that he can't listen live we've got you covered on the I heart radio. Paula Monica joins us on the line now as he does every single Friday and Paul thank you for coming all of us. Or talk about Berkshire Hathaway today are you bullish or bearish on at this point. It's hard to really be bears on Berkshire when you think about it I mean obviously we know that. Warren Buffett continues to work his magic of the company's debt you know shares in here. An all time eyes meet some savvy investments whether or not you wanna say it's all I am more to give credit Charlie monger or something you were pretend like you Wexler columns but. You might find niche thing that Berkshire has you know he emphasized some of the company's patent do so well lately. Like cheap you'd. You know started to get a little bit more interstate eighty in the you know the tech sector without being apple has. Looking at this company right now how much of the portfolio is still managed by Buffett and munger how much is handled by his lieutenants. Yeah I mean there is a growing sense that Wexler columns are taking on a lot or I don't know there's. In any of percentage. And you want deputies. You know Warren Buffett first is that you know what sort problems that we clearly knows that. He has that started to you know to use more responsibilities. Her stock picking him running the portfolio to. Those tenants of course Berkshire at which also more than just that the companies that is best. Has that rising insurance business with Ike out reinsurance business huge energy business and yeah I think that's the reason why people expected. Went populated eventually decides either retire or succumbed to the inevitable fate that will you know. The fall almost. You got kind of regime change insurance or war. Greg gable the energy CEO will likely he'd been you know that doesn't mean that they'll start during the stock picking. Belly stove in the US homes that didn't actually brought the entire top. Yet you go down those two companies they ought to mean obviously mentioned Geico they've got dairy queen Lubrizol you know of this that they they own stakes in seems like just about everything. One of the questions that I have. They're sitting on a big chunk of cash right now north of a hundred billion dollars. Is that they give you any indication about where Buffett views the market right now and B do you see any plans for that. They have been very aggressive over the past couple years making acquisitions and I don't think that's something. That we know lie and any time soon and obviously the partnerships with reach the first two laughter. He's not endowed by Heinz and then winding up buying craft does well is create mr. Kraft I'm. I expect more deals like that you committed the Precision Castparts you know not that long ago which is a little largest in the history I believe so why I think as we know but it is the deal maker blight. He's always looking for the right price so the question becomes. As stocks continue to move higher. Is he going to be able to find something at the type of doubt that we Asian. Deal makes sense brand is not canal for pain most likely. Obviously you know Boston is done a ton to you know make note of his succession plan these built in and you know we we got the news a couple days ago that a couple more directors were added just give continuing to bolster that bench. How much of the sentiment in this stock is tied up in buffet we have any idea on that. It's really hard to say that they think that it is a legitimate question. To wonder what happens to Berkshire Hathaway. After Warren Buffett is gone I mean you'd have to pay bare minimum people are going to be flocking to all law. At the end of April early may need to concede west and come home to keep changing Greg gave us no disrespect them but they're not a legend that. You know the pulpit is yeah that is sidekick Charlie Munger there as well like you know on comedy routine often. So I think it's a legitimate question that you know obviously look at apple Tim Cook is Don may very strong job of running that company gets criticized. For not being Steve Jobs split you know I think Apple's shareholders shouldn't be all. That upset about that but I think it's a legitimate question what space that could be like after Mark Zuckerberg even decides to. Retire pursued me he runs the company in 20 yeah passed away yet you know we wander out anytime you have an enigmatic founder. That there's going to be you know concerns about what's next I Walt Disney is still named Walt Disney. Bob August and pretty decent job of law does. Very good Paul thank you for the time have a great weekend we'll catch up with the soon. Paul Monica from CNN money talking about Berkshire Hathaway I just I continued to you know I look at Berkshire and I say. That being great at what they do they may still be great at what they do after Buffett's gone. But how to people view the company Wendy's and that's that's the one can circus and I again they're they're based on sentiment is not based on how much money make it based on how people feel about how much. And that there's very few he mentioned a few marks up Zuckerberg to go to net. People that have so been so iconic. As the CEO of the publicly traded companies is very few that can you know rival. The just the enormity that Warren Buffett has represented for Berkshire hath it's it's like being the guy who comes after Michael Jordan. Yeah no matter how good you are. You're coming after Michael Jordan and your always gonna be compared to mean is there in in terms of you know publicly accessible it publicly accessible like. Is there any moral legendary investor in the last hundred years. You know guy out of the are you could even make that argument to Wilson even in the conversation ego like Peter Lynch yeah. You know but his track record was 20 years PM way shorter and I'm trying to think of who else's in the conversation. I don't and I really felt it and yeah I really don't think there's anyone that you can put on that same in the same room. You know it's it's tough so. You know that is the big question but if there's if there's any company that's ever done it better in terms of planning out a succession I can't think but look at. That put the ball to be gone for like the last ten years and they've done it truly incredible job of planning for the eventual succession of Warren Buffett and you know there's no company has done a better. But you still have a company that has been centered around one person for me. 154. Decades by decades. It's yeah I mean I think you know again. Buffett's 87. Mongers 92. You know you look at is say no one thought these guys were still gonna be here at this point. But I think if there's anyone who can figure out succession plan it's them Brodeur who are more Buffett does and he said this all along he says look I've been on talent. And and I bet on companies that I know. He knows the town his company he knows his own company so I look at it from that perspective and say if there's one person who should be able to pick the perfect. Person or people to follow them yet should be warm Buffett I don't think so should you Warren Buffett it's kind of right in his wheel house.