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Weekend With Warren: Berkshire Hathaway CEO Warren Buffett and former Microsoft CEO Bill Gates on the future of tech sector.
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47 years later.
You know from you starting your company you finally invested in the technology stock for two IBM and Intel yeah I didn't.
I didn't do we have to I didn't -- the you know how you -- the idea who -- the and to top one yeah with a -- -- was the only one here that OK Todd did Todd.
-- who was one of your new investment managers it was his idea.
But you never bought Microsoft.
Did you hear from your board member of -- some of that I can't I can't -- -- jumped at it if we bought Microsoft.
For one thing.
Our buy index for each month after month after month and something had happened that was.
Favorable Microsoft people with a set -- -- inside information well actually let's bring in Bill Gates right now who founded by video.
Give me some insight into the -- about how the dot -- What's inside information and -- -- When -- that he thought we bought a technology stock an IBM and Intel that you think those were pretty good ideas.
Well I think it's.
Great that Todd.
Gets the entire universe.
To exercise his.
You know Greek thinking then.
And he's he's done a good job there -- a lot of technology companies who can't see where there gonna be and in ten years or twenty years.
IBM's got enough service revenue that they may be somewhat of an exception to that but.
Most tech stocks you don't play a very -- variance game which makes it.
I think the most and this interest in industry in the world but not for an investor who wants.
Any degree of downside protection he -- ever.
And amenable -- -- anyone -- do -- sense that what what what should be made about Todd Todd can changes positions far far easier than I can't so.
Dodd is working with some entity decides to move on to something else -- can -- it does that we could do.
I can't do that with the big positions that we take so we're really locked in more than than he would be.
-- you just said that with many tech stocks he can't see where they will be in ten to twenty years can you see Warren where FaceBook would be intent to twenty years.
Don't know I can't I have risen enormously impressive accomplishment -- -- and my guess is that you know as a big future of some sort.
But I have no idea of you know I didn't even know what it was six or seven years ago when I'm still obstacle.
Argue on FaceBook.
Sure I don't what are your way eight is it a different world yeah.
-- always does that affect government forward -- thank bill had to teach you how to just simply click on the blue.
If he's -- he's had his problems with -- yeah.
Well warm to ivy tech user you count online bridge that's right now that takes him up.
In the day at the top 1% in terms of Internet addicts have by you guys -- about a -- -- that as far as I was certain.
There's a guy inside that I think there's plenty of employer.
Let's let's talk about -- with its huge news today the beginning of the road show.
Bill he you've been.
Dealing with investors and and analysts for years and thanks for years and years.
Would you tell Mark Zuckerberg 'cause there is question as to whether he will attend the road show would you say you know he really should get out there and do it.
I -- one Microsoft.
They had to do its road trident minimize the amount of time I think I offered up.
Three days I told them no -- scenes I took a book about biology I was reading during the breaks.
I tried not to have -- in and take too much time away from the business.
You know so.
You got to focus somewhat important in and making sure your product friend users is great is.
Is number one this -- that negotiated doubt but with his mother daughter and -- -- the -- willingness that would -- -- I didn't know what I was in Florida.
I liked I didn't want to spend more than an hour buffeted -- that meet the guy and look forward more and I'm Matt I wasn't sure we have that wants to talk about night.
Was a 100% wrong about that but my mom.
Made -- say OK I'd stay a few hours at this event that Kay Graham warned we're out in fact I stayed the whole day.
And I was disappointed when -- more misleading because in talking about business in the dynamics of how things were changing night I found somebody who.
You know I'm I'm part of one -- the most interesting part of my lights a lifelong conversation.
His mother was -- some part of would you what would you advise.
Mark Zuckerberg of FaceBook to attend that -- show.
That would worry about it too much and they don't -- and that is that offering is going to be very you know quite well much like the stock is gonna at all but I but didn't.
You know it's gonna get all the attention the world let people know what FaceBook -- that is that is not a mystery that has to export it debt.
-- to me yeah.
If if it does have a hundred billion dollar valuation -- what what are the crazy numbers are out there can it sustain that wasn't need to do to sustain -- I just -- they have advertising revenue that makes that earnings stream.
Properly discounted be greater than a hundred billion.
And simple in the Asia out of go to the next bullet -- Pockets right there in the intelligent investor.
You know they get -- a lot of traffic end.
The ability to monetize that traffic over time it'll be fascinating to see.
They've taken push up and and go well beyond.
The earnings stream -- -- for that or not but it is one phenomenally.
Impressive company.
-- for but he's always talking about the succession plan here and you know you went through this very issue back when you decided to leave the CEO position at Microsoft.
The stock has done really well lately and windows eight is about to blast out onto the scene and I hear from we -- Silicon Valley heavily Fox Business.
And I hear from them that once when does it gets into the ultra books and it becomes a touch screen.
You could very well take on the back -- and the MacBook.
Is that what you're what Microsoft should be aiming for and do you think it can happen with -- for books.
Well it's very exciting that window -- is coming out it's a very big deal for the company.
Stephen know the whole team are.
Doing a great job there it creates a new category of machines that are sort of have the good things about tablets in the good things about PCs.
And you know so it's going to -- -- digital tools and people right now like the tablet but it's hard today.
Take -- give him good you don't have Microsoft office on there and so with our hardware partners there's a lot of need suffered comes out later this year.
Warren what kind of computer do you use.
I think it's.
And HP that the guys at the furniture market.
Well I have Samsung tablet is my primary machine right now but I have.
Dell machines and a variety I'm always getting the latest and greatest so no I -- for you.
Don't know I you I said -- news in the late.
Integrated it and bill as they have a chimpanzee up there in Seattle than they had in the and -- -- have -- -- test these -- but.
And actually -- more reliable -- Do you have an -- -- well.
Now they're not going for the tablet at this point -- you know it.
Let's let's just say that that the Samsung galaxy has gotten traction but not nearly as much as the iPad has that.
Rim couldn't come out the tablet that -- it down nor HP.
What company out there has.
That that special something that can take on that not happening.
While the tablet space is.
Is going to grow but you really want.
Something where.
You either have -- pan.
Or keyboard and you have your productivity applications.
Us who want the best of of both worlds and that's what in -- Microsoft and others are pushing for I think this fall people understand.
That there's there's room for big improvement there.
-- Microsoft has made a pretty big deal about 300 million dollars with Barnes & Noble will eventually that morph into a deal to make some type of tablet or Kindle that has.
Microsoft abilities to Jack it up.
Well the idea there is that they're going to take they're reading experience and their books and make them look super good on these new devices and so.
And these devices who wanted to -- office where you -- documents.
But you want to -- books in new ways to some video and new ways and so -- that merger and having their teen do innovative work this is what made that investment and.
