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Buffett's Cancer to Cause Uncertainty?

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  • Description

    Stifel Nicolaus analyst Meyer Shields on Buffett's impact on the markets.

  • Duration 3:09
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You may not have heard the news by now and that billionaire investor Warren Buffett and nothing to shareholders that he has early stage prostate cancer.

Mr.

Buffett spoke to are very -- -- -- an earlier today and this is what he told her.

You don't have to worry at all because I am not worried this -- notes that -- does not interfere with anything I do.

Let's pretty mayor shields to Wayne -- as an analyst at -- -- and he covers Berkshire Hathaway mayor thanks for joining us.

Thanks for having me on obviously wish mr.

-- is speedy recovery but -- does -- impact of shares of Berkshire so far it.

How do you think the news I mean we've been talking about the lack the succession plan for succession plan for Berkshire kind of a while now cracked.

We have certainly I think what we're seeing today is a little bit of weakness the good news is that it doesn't appear like this is a serious medical problem.

You know mr.

Buffett's letter was pretty reassuring as far as that goes the bad news is that the market apparently does not like being reminded.

Of of Warren Buffett's mortality.

Well you know there was they said in the past that they have three potential successors within the company and that these people don't necessarily know who they are.

There's been some names bandied about I'd love for you to weigh in on that and a G Jane is one of hot Montrose Matthew Rose Tony nicely we're showing them our screener who do you think is the most likely successor.

I'd start by saying who knows -- they're gonna oversee the confidence I have in my own opinion but among that group -- at -- seat I think this skill set that he's got is the ability to say no.

And if I can paraphrase Warren Buffett himself he's got the ability to be fearful when others are greedy.

As we -- -- and others are fearful that the trick in the underwriting especially the large ticket items.

That bear -- we -- tends to underwrite.

So how do you think his track record would compared to Buffett's I mean would it be a -- on his take on hurt or not would abuse out.

What -- obviously but -- -- on valuation.

But the negativity is not so much a reflection on a seat at the fact that known as Warren Buffett he's got a unique reputation in the history of investing and as capable.

As his his successor is likely to be because remember they can pick from almost.

Anyone on the planet -- success is not going to be Warren Buffett.

Let's not let the holdings mayor expects US had any new major purchases another couple -- portfolio managers there Berkshire he expect -- advisor.

Maybe they'll unload some things -- the news impact any of this sort.

Is it basically business as usual.

I think it's business as usual the fact that this is insignificant from a -- -- perspective other than the reminder means that everything should continue status quo.

Okay Berkshire itself is underperforming the broader market by a couple of percentage points notably what's your outlook for Berkshire through the end of the year let's say it.

I think it.

Probably gonna perform in line maybe slightly below the the broader markets as the economy recovers.

A lot of purchase units to do better as well.

But we're at the point in time now when insurance company earnings are likely to come under look a little bit of pressure and purchase got obviously significant exposure both through -- into the reinsurance -- primary insurance operations.

So yeah we say in line to slightly below where the broader market -- -- -- thanks so much for your time -- your insights today.

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