This transcript is automatically generated
Let's go to Liz Claman an Omaha where is I believe Warren Buffett and company right.
You bet -- from Barney and company to Warren Buffett and company thank you so much it's.
Barney got to watch this because we're gonna talk about a lot of things that you and your viewers have talked about the first.
We welcome Warren Buffett the chairman and CEO of Berkshire Hathaway thank you for being here.
Thanks -- -- pay the markets are open and trading -- take a look because you said over the weekend and you rarely say this.
That Berkshire Hathaway stock is under valued and as we look at how it's trading it is up slightly about a half a percent.
What do you think -- -- -- you think it would have been higher lower.
But that doesn't change my conclusion because is up a half percent and you know I don't I've no idea whether Berkshire stock will be offered up -- the the next week or month we're here but in relation to the business that we own it it it's it.
-- What does that number one questions that came out this weekend.
Was so interesting to me because up -- coming six years and I've never hurt somebody people ask why isn't Berkshire paying a dividend.
This at a time when the largest percentage of S&P 500 companies are now paying dividends first time in a long time that they are.
And then you have the fact that you -- dividend paying stocks like Coca-Cola American Express Intel which just raised its dividend this morning by the way.
Won't want you pay a dividend to your shareholders.
Well we think our shareholders.
We think they would be -- -- if we a lot of the money now we may be wrong and that.
But historically who have been right and if if we paid a dividend over the years our shareholders would be considerably poor.
Than they than there are and as long as we -- think we will have the opportunity to invest dollars.
To create more than a dollar present value will retain the money and when we don't think we can do that will either repurchase stock and -- evidence is there no way he will ever pay a -- -- -- virtual credit card that you get so large that it can't use the money or all of the money that are effectively but.
But we don't think we're at that point -- over much closer to that point obviously that we were twenty years ago.
I just mentioned that co pays a dividend speaking of Coke the board is mulling a stock split.
Would you be for a stock split of Coca-Cola I'm I'm totally neutral on that that's it's slightly and if they do -- -- violent if they'd all but.
It it it won't make any difference to us in terms of the value Merkel -- stock up.
But the succession plan was a very major focus here and you -- you'd be very clear about it.
You do finally have one person in mind with two back -- a -- -- yesterday that it was a she but it it is a male it's a -- it is a male okay.
I talked to some shareholders who said it is becoming increasingly evident to them that it's a -- Jane who runs your insurance business.
Keep going with the poker -- -- because they say the insurance business is increasingly becoming.
The one of the major important factors the most important factors for the future Berkshire and the profits that -- Princeton.
But I was it is about the -- it's been enormously important in getting us to where we are now it's still enormously important it's actually not as important relatively.
Entirety of Berkshire as it was.
Ten years ago -- -- and more businesses away from insurance but insurance.
Has driven us to where we are presently.
And the culture he said he understands the culture Berkshire all all three of the candidates understand the culture rumors alright.
All three but -- G at the top line.
I think that they're gonna -- -- -- When and where we put -- the Borg lol OK all right Ali the board knows you also said about your successor that under your his successor there.
Will not be much of -- derivatives book.
Under Berkshire's umbrella.
Is that because you feel you really understand derivatives in a way that nobody else does or that they become dangerous for Berkshire -- like it.
That there isn't that much of -- derivatives book right now if you told CEO of Berkshire we've got very little derivatives but we have a few that one particularly.
Good size position in terms of our equity put situation all that's nothing compared to what we have an equities -- -- So.
It's not a big deal now.
I would guess it would be a lesser deal at.
And partly that's because the rule in -- in the big way -- because the rules of change on derivatives we would not have the derivatives position we have now -- the rules of the in the same.
Five or ten years ago in relation to posting of collateral we think that.
That derivatives become much more dangers for the individual enterprise when their required.
You're 81 years old that's not any news to anybody but.
Well the fact that you were diagnosed with stage one prostate cancer gave some people start it is obviously nonaggressive and you say it's a non issue and you won't miss a single day of work do -- your treatment which starts and what July the July the July yeah out.
Then you won't miss any work at all -- Maybe maybe maybe fifteen minute today so -- that have.
-- lizard for fifteen men well I wish I was your felt we -- back to drill a heck yeah.
But when you look at that the person who will eventually take over have you begun to apprentice.
Your successor might my successor either practicing -- they needed apprentice and they would -- that its success -- Nicaragua now in fact none of the three.
Candidates would need to practice.
In some of what you talked about.
You talked about how great some businesses are but you talked about.
A big mistake.
Energy Future Holdings of bonds from a Texas utility why do -- sort of bring it up dog myself but.
These were tied very tightly to the price of natural gas some of which plummeted shortly after -- -- -- right how to get that so wrong.
It was easy -- -- a packed up.
I would be able -- together at.
India would have it was it was just a case about not -- that in.
But to my decision.
With the appropriate probability.
But 2010 you have to do two billion dollar write up write down 2011 another 398 million write down.
How does not quite that total with the total the totally put it was about two million.
I think it's been written out of 405.
How much forces are going to get well -- -- although -- hero to think of what did it easily could.
-- to soldier on this idea believe me really ought to -- -- the -- on the high I have I have a real ability to pick the -- doctor effect.
-- -- -- -- --