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Weekend With Warren: Gamco chairman and CEO Mario Gabelli and Jim Kieffer, co-portfolio manager of the Artisan U.S. Value Fund, weigh in on the econom...
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Very much Wall Street superstars Mario Gabelli and should keep -- are no strangers to the Berkshire shareholder meeting.
They've both been finding value in the Oracle of Omaha for years Mario Gabelli -- chairman and CEO has more than 36 billion dollars in assets under management.
He's been holding Berkshire shares from more than twenty years and didn't keep her co portfolio manager of the -- US value fund is also betting -- -- More than sixteen billion in assets under management -- was named one of morningstar's best the best -- fund managers last year.
Joining me together at a Fox Business exclusive here in -- First just get your thoughts on this jobs number yesterday because of course that's it today it.
The colors investing on a -- date basis which I know you guys are both long term.
But the markets get hurt you seen any kind of hold in the next year to and are you still -- -- equities -- We're having equities equities best place around when we look at it when we look at compared to bonds say it's no contest.
Congress to fluctuate economy's gonna slog along but.
Prices are more interest than -- than elsewhere.
Mario and loving equities still in there with elbows and then picking up -- know that you read basically enjoy reading annual reports.
See companies -- the earnings calls and you always find good ideas.
The problem is that.
You do have an extra volatility in the market for you have to deal with that and -- whole lot of dynamics over the next five months that one worries about.
Short term Operation Twist that.
European dynamics the our second quarter earnings releases and obviously the fiscal cliff but on balance I have to echo.
Everything that you heard about the next five years we'll look.
Get so Berkshire Hathaway shares and particularly for you -- it's a very large portion of at least a couple of your funds -- your value side but.
He has not beaten the S&P 500 over the past not one not two but three years and if you look at the three year chart of the SP -- one year.
It's done so nicely does it bother you that Berkshire Hathaway has -- -- You know there's the stock has done one thing and he's done something differently -- he has worked very effectively during this time period gotten involved in a lot of choice investments at.
Very attractive price generating strong returns.
We look at today -- you know that that's an unusual place for getting me -- -- so I see a lot of the field and that it has underperformed the best years.
Doesn't really -- it -- Mario.
We've been through the ups and downs of Berkshire for many years but what do you want to hear from profit this weekend this terrible for me.
Eleven billion dollars the even -- they basically put -- on the books.
Is elephant gun is ready.
What's he gonna do next in terms of the adding to the operating part of the business.
And then you go back to the insurance part last year when we there are a lot of natural disasters they have some hits -- Capital became constrain.
Rates are going up and that part of the business will now pump and as you pointed out the stocks unchanged year to year.
So where we go next and what and how.
So tomorrow morning the video will show us how Buffett proceeds of himself.
In terms of his health issue -- -- something very interest.
I'm right and for those that don't know of course he was diagnosed -- stage one prostate cancer he says he's five.
Let's let's get to one thing he did this year.
That he has never done before and that is by a technology stock he bought IBM.
And Intel that surprise -- -- finally jumped into the tech waters of those names.
-- -- -- -- -- -- -- -- Technologies modern day capital units.
Has started in the business he started as capital goods guy we'll nowadays -- is -- capital this idea is to.
Wide deep company involvement -- it's gonna participate in the -- needed services needs there's some I don't think it required any.
Great leap of faith and his -- -- -- obsolescence or other elements like an audit all of -- having half how many people out there how many of you in your 401 -- or even your portfolios about IBM for years -- well part of -- from.
From my point of view it's not complicated.
Elect comes that would new raises this high tech.
Burlington gets -- railroad locomotives with a high tech.
IBM is a global way to participate in the global marketplace great alligator okay.
And -- tell us out of before and now his successor doing -- good job.
It's interesting because he brought on to investment managers talk constant -- Wexler and everybody thought they were behind the purchase of the tech stocks finally.
I caught up with Warren Buffett last night and I asked him.
This very question.
Well it was my idea but if it doesn't work out was it was Charlie's yeah.
But your new investment managers weren't the ones who brought you the idea because you've traditionally really stayed away from -- that they did not know I was buying.
I don't tell them -- Charlie -- buying until.
I was way into it maybe halfway through but.
No I don't I don't talk to ten and and then I about what I'm buying or selling or what they're buying or selling that.
We've we all go our own way on them.
He said it was all his idea -- -- He didn't talk to anybody about -- this is interesting it's the first time we've gotten a window into.
Who was really the heart that Mario -- Well I think because you know he's never bothered tech stock before here that's it would go back to what is -- tech stock this social media is one thing.
You know and he was very Smart he didn't have all the B to B I mean I remembered.
You know dot the -- dot com took off fish to fish except.
So I hear you -- All of those things etoys.
You know point eight million dollars -- like that that he never got part of that maybe.
It makes sense we don't a lot of technology stocks ourselves and we didn't a decade ago but the valuations -- listening to.
That shouldn't be that way the business operates is different than it had been destroyed him what do you phone in your funds that Warren doesn't.
That if you have -- easier and you had a chance to pitch one name.
What -- without being.
Real Western Union I think that's type of name that warrant would have an interest in its.
I'm very dominant business model -- -- business position in their advantages over others.
Cash flow machine just -- it just says he appreciates.
Down and now with some investors and investors at the moment.
Probably due to concerns about employment.
Misperceptions about Mexico having an extra large role in the business so -- so.
The type of cash generating business that that she has an interest in and he knows.
Out of the Mario what would you tell well I would probably say if you wanna buy the whole company it's one thing you wanted to -- a piece I'm not gonna talk -- talk that hadn't thought.
And in that context you know today right now in upstairs we -- having meetings TD Ameritrade Belmont Lindsay and a whole bunch of companies.
So there are a lot of very good ideas and they'll put an entire company.
I would have worn by natural -- gases from 47 dollars stock.
It is a terrific -- play and the management needs his help.
National fuel and gas and -- -- Western Union Mario Gabelli can -- our wonderful to have you -- thank you for being here exclusively together.
Thank you all right cap out of the meeting closing bell ringing and 37 minutes.
To some -- an icon to some he's a boss and to three.
Just three people on the planet his dad coming up on talking -- -- Peter and Howard Buffett about.
What it's like to be raised by investing legend and how they see the future Berkshire Hathaway stay tuned we're live in.
