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Steel Vine Investments’ Spencer Patton, Barron’s Senior Editor Jack Hough and FBN’s Nicole Petallides on Warren Buffett’s annual letter to Ber...
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Our top story tonight Warren Buffett speaks in his annual letter to shareholders the Berkshire Hathaway chairman says the company's performance in twenties what was quote sub par.
So what more -- the Oracle of Omaha saying about 2013 here break it all down.
Here at her parents Spencer -- chief investment officer Steele -- investments.
And Fox Business is on the -- pedal -- from the floor of the New York Stock Exchange what -- tricky.
Our eight Jack I'll start with you picture here on the set with me.
I thought so one of the things he said that -- that was really -- was that he was disappointed by the lack of a major deal he says I pursued a couple of elephants.
But -- away empty handed that screens acquisition mean.
Yeah it it's really a big change if you remember back toward the end of 2008.
Or buffet wrote an op Ed in the New York Times and sent stocks -- a great deal on buying American you sure it's very.
And that -- political about -- Well what what we've had since then is a tremendous -- -- need it turns out he was very much right now had a tremendous rebound in the stock market and suddenly.
That the person was so enthusiastic for buying is running out of things the -- and and and and has lot of cash I think that says something about how ordinary investors are having trouble finding good deals right now.
Is did you interpret it the same.
I really do I think Warren Buffett's annual Letterman this is like Christmas for investors we get to open up the -- open find all kinds of gold nuggets from from war and so it's really exciting that to get in his mind he's been very -- about you know using -- -- -- to try to find large acquisitions.
I really one of the best things that he's done in the past is that deal with Goldman where he kind of bail them out a tough situation and -- all that preferred shares and stocks and everything that he got.
And really we're just kind of waiting for and to strike that next thing because.
His advantage is that he buys and cash she really doesn't do a lot of debt.
And so right now the world as a washed and really cheap money so his advantage of all cash offers is just not as attractive -- what I think it got the biggest attention on the floor there I think.
A couple of things that I certainly would be focusing on never -- and he and Charlie Munger are all over it and still looking to make some huge acquisitions and you're talking about something -- that he thinking.
Huge the other thing is that in he was saying that.
It's likely that he will increase in the future his stake in -- companies and everybody wants to invest.
Like Warren Buffett the four companies are American Express Coca-Cola IBM.
And Wells Fargo so that's interesting to -- write it down because Buffett that's a -- the top on.
Yeah -- do you do you what do you think -- kind of -- -- you can't go wrong with companies like that what's great about those companies is that the average -- and -- -- can buy shares that's not the case with most of the stuff -- -- the -- buying these days.
He worked on its own stock he's negotiating for these are preferred stock deals -- he gets 9% dividend before anything else happens -- warns warrants to the upside.
You can do that when you can back up the money trucked to a company and -- your own deal but you'll ordinary person campfire ring -- so.
So it's nice to that there are a few stocks out there that that that that he likes that ordinary people can still -- Yeah he's that's that's a great quite a lot of people say that if you invest like Buffett it's not necessarily great things are not getting the same deal that he gets.
Yeah that's exactly right and I think one way to look at it is you can look at Berk Shire stock itself and you see how how well that's done especially in the first two months it's almost up 15% here -- 2013.
That is really stressed on the upside is done very well also rather than going and trying to buy into the names I'll let you know well last separate from -- -- why not get into Berkshire are on a pullback.
And let Warren do the work force.
Yeah -- I have to admit you know I'm still combing through there's a lot of people looking for some clues about his health did you see anything -- there on.
I didn't hear anything about his health at all on the contrary it sounds like he and Charlie Munger are raring to -- gates seems so.
Opportunistic at this time they seem very very conscientious and loving America saying that the opportunities in America our balance.
-- about investing in Berkshire of course the B shares are very affordable the stock over the last 52 weeks is up.
About almost 30%.
So it's not a bad idea here fan of Warren Buffett -- in to invest and that way okay we'll leave it there guys thanks so much.
