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Weekend With Warren: Berkshire Hathaway’s Warren Buffett and Charlie Munger and former Microsoft CEO Bill Gates discuss the future of energy and whe...
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Country.
Let's get to keystone then the Keystone Pipeline.
Was rejected initially now the new proposal from trans Canada is going.
You're both Nebraska residents of -- -- -- California naturally be from Nebraska but you're also business people.
Of the new route and when we get more details were low but would you be for the Keystone Pipeline if it doesn't threaten the -- -- and it doesn't threaten.
The areas that are -- culturally sensitive and environmentally sensitive.
I'm not an expert but in general he sounds like MP light like it makes sense to -- -- mean that awful lot of pipelines running the United States and and net they've certainly been a huge plus for the country and I don't I don't all the details on the -- barter thing.
Based on what I know I would say that it it makes sense.
Where he had been disappointed -- keystone was rejected could mean summoning jobs well I don't think that it issues that -- yeah -- I don't.
The jobs aspect of it is it is not the -- aspect of real questions.
What it will do for the country over many years and and what -- -- -- -- but you can build anything and create jobs but that doesn't mean it's a good idea.
-- you're invested in alternative energy and some -- that certain sub sector of nuclear but looking at natural gas.
While it is so unbelievably.
Inexpensive now and cleaner than oil.
Do you think that this country should be converting to Nat gas burning cars and trucks.
Well -- natural gas unfortunately in the energy density in lets you -- to have very low temperatures much lower.
So there's a lot of innovators looking at how can we do that better.
There are ways of converting natural gas to liquids.
But those factors are very expensive so people are gonna try to innovate there it's such good news that we have in expensive now -- its most natural.
That we get the benefit of doubt in the power generation sector as we're turning over our power plants.
But because the prices so attractive Lana equivalent energy basis there will be innovations that move it into parts of the transport sector that's very exciting.
Charlie you set on stage this weekend.
We should not look for energy independence we should use up the bad guys energy.
Or the guys like Canada or the good guys -- conserve our own right.
That to me is an obvious.
Conclusion considering -- purchase of the stuff is going to get.
Trying to use.
Our -- supplies -- -- reserves as fast as possible is in -- But you could.
Arguably stick it to certain Arab nations who despise the United States in the despise Israel and make life difficult for everybody.
By completely turning off the -- not using their oil and then you hit them financially now.
My desire to do spiteful clings to the Arab nations zero.
-- long as they wanna sell -- oil -- I'm because of the -- but rather than use our -- Let's I think that adults.
Suffer how to be better off later.
In the -- save your own -- by the other fellows that's what you're doing.
You drove on electric car -- -- the most recent BYD do you own an electric car they'll.
What do you drive term Mercedes Mercedes what do you drive Cadillac Cadillac built what card do you usually use Mercedes or say anything but a are we to Mercedes.
Mercedes is buying advertising right now what happened is as a thank you very act and we hope.
You spoke took swipes at business school this weekend.
Which I thought was interesting -- you don't think that they're teaching the right things warned you went to business school.
Apparently.
Editor at Columbia I don't know I had I had a fabulous teacher I when I went there because -- -- fabulous teachers and I went there.
Because two people that I really wanted to sit at their feet and I got a chance to do that.
And your generous to business schools you post more than forty of them every year or you come here and 48 let them come here and take questions and and and that's certainly wonderful but -- what is what is at the business schools are doing wrong well.
In the investment field I thought that over the last -- here so here is that most men are great many business schools we're teaching nonsense.
But that doesn't mean they were and other aspects of.
Built Charlie would either of you make that decision to hire somebody based on whether the candidate have gone to business school -- But their young person.
That's a recent part of the -- -- and so.
Might give them some valuable skills and I don't think anybody saying that this is school -- and have some.
That some merit.
To it it's just the how you do investment valuation.
As they've tried to -- applying mathematical techniques.
They claimed more than they should for these techniques.
I hired a young woman a couple of years ago -- out of business school and she she would have been very good naturally but I'm sure she was better because you've got the business school but I didn't hire for what you've learned about investments in the business.
-- Well rice said the that I thought the business schools -- improvement.
Which I think it's true including an investment -- but they have a lot of room for.
The buffet wrote hi it's getting so much attention.
Charlie what did you think when Warren push for the Buffett -- and has been quite vocal about it.
Well it's caused maybe some lack of popularity of my country but at the and I'm willing to bear them over the Canada's -- Berkshire.
I.
I think it's -- the rich people pay more taxes.
More on.
You know.
What is despite the very -- actually do.
I thought -- -- and do you see the other the side of it that the goal of the wealthy are the ones who are paying the biggest amount of taxes -- that -- of large percentage of people don't pay.
Any tax aside from sales tax etc.
there's that that whole argument.
But -- -- payroll taxes payroll taxes or 800 billion.
Of -- 2.3 trillion dollars.
Revenue thank -- -- payroll taxes are huge element of our revenue base.
Well I don't like we.
Idea of that.
Nor do you -- the rich should pay taxes because the country can't work them Texas Rick retrieval -- prism of -- it would have terrible economic correct so I don't like this politics of them these.
Of discourse.
But I think the retrieval should cheerfully pay more taxes.
We already talked to warn about the developments in Europe this morning with the France turning socialist with Francois or not just the socialist president.
The US banks sworn you said we're in a far far better position but.
Both you and Charlie sat here a year ago on fox business and really we're quite concerned about what would happen with Europe.
Can the European banks shortly some of them are they so weak that they can somehow systemically.
Negatively affect US banks are banking system here Charlie.
I don't think it'll have that much -- -- Carlos.
But I do think they still have a terrible problem.
-- yeah I didn't -- that beat but.
Obviously it would have some effect but I I do not think our fate is in the hands of European -- side we're very much of the work.
Well they're all very -- -- are you would get us as you know you've got so you're not considering buying.
There's not a European -- and I'm looking at.
Not a European think you're looking at.
Internationally by virtue of the fact that you're huge in insurance in this in this company.
We cannot ignore the risk that is lurking out of Iran and its plans for.
Nuclear dependence on and perhaps eventually dominance.
Aren't you writing.
We exclude them there and but that's been true generally for a long time which looked at.
The nuclear risk is one that all the resources of the insurance industry can't have -- -- it would be folly derided because people wouldn't get -- production I thought there are getting so.
-- players out of the question.
Charlie -- concerned about what is happening in Iran and and -- you see an eventual military tension between US Iran are you.
Or Iran and Israel which would eventually perhaps -- in the United States.
Well I don't think I know much about how it's going to work in my area do you leases wishes of other people who claim that no.
What's going to happen exactly.
I think the future is often very hard -- --
