Warren Buffett was interviewed from Omaha by Liz Claman of Fox Business on February 4, 2015 from 3 p.m. – 4 p.m. EST.
These are some of the highlights:
(1) $10,000 invested in the Buffett Partnership in 1956 is today worth $170 million.
(2) This year’s Berkshire Hathaway annual meeting, celebrating the 50th anniversary of Berkshire, will attract a record number of shareholders exceeding 40,000. Many CEO’s will be present, including those of companies Berkshire has invested in.
(3) With 30 year fixed mortgage rates below 4%, this is a good time to borrow to buy a home.
(4) Buffett would not buy U.S. Treasury bonds at this time. The 30 year bond could easily sell at 60 in the near future (60% of par).
(5) It will be difficult for the Federal Reserve to raise interest rates this year with interest rates in Europe close to zero. A rate increase would exacerbate the problem with the dollar (raise the value of the dollar).
(6) The Keystone Pipeline should be passed and built.
(7) Berkshire is planning to buy a “small business” in Western Europe.
(8) Jack Byrne saved Geico in the mid-1970’s. (Tony Nicely, CEO of Geico was also interviewed on this program.)
(9) Tony Nicely: Geico wants to insure Uber drivers and is licensed to do so in Maryland and Virginia and is applying to other states.
(10) Driverless cars will be introduced gradually and will reduce the cost of insurance since there will be fewer accidents. Warren Buffett welcomes anything that leads to safer driving.
(11) Warren Buffett does not plan to sell Berkshire’s shares in Moody’s. Moody’s will have to pay a fine but it is an excellent business. (The Justice Department announced on Sunday that Moody’s is being investigated for awarding high ratings to risky mortgage backed securities (which contributed to the financial crisis). (Standard & Poor’s just settled with the Federal Government and several states for payments totaling about $1.5 billion.)