> Warren Buffett Blog

Monday, September 9, 2019

Warren Buffett full interview on Healthcare, Stock Buybacks, Costco, Life Advice, Business School and MORE

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Time stamp and topics discussed

00:05 Why the US economy is slowly down
1:00 Negative interest rates, Economic Variables
4:00 How much cash an ordinary investor should have
5:50 How closely should you follow stocks?
8:20 Buffett on stock buybacks 
10:30 Bernie Sanders and problem with stock buybacks
13:15 What characteristics do you look for in a president?
17:30: Was buying Kraft Heinz a mistake?
18:30 Why people like specific brands like Coca Cola
21:00 Why Hasn’t Warren Buffett bought Amazon stock
22:00 How do you recognize when a trend is over? (Newspapers)
24:00 Should we reduce the Federal debt?
25:15 Should we adjust our tax policy and the minimum wage? (Earned Income Credit)
29:00 Warren Buffett and his new healthcare initiative
31:07 Warren Buffett’s relationship with Todd Combs
35:30 Is the government over focused on drug prices?
36:40: Buying a stake in a company vs. company takeovers 
39:50 On buying insurance companies
41:10 Warren Buffett on buying the New York Times
42:30 Warren Buffett investing in General Electric (GE) a good decision?
46:20 What are the costs of a tax cut?
47:25 Warren on his kids and the future of Berkshire Hathaway 
50:00 Why Warren Buffett doesn’t read or pay attention to financial statements/news
51:05 The 5 most important things to Berkshire Hathaway shareholders
52:00 Why Costco is like Berkshire Hathaway
53:45: Warren Buffett on investing in JPMorgan Chase and Jamie Dimon
54:15 Warren Buffett on his surprise interest rates have remained so slow for so long
55:30 Does Climate Change change your investment strategy or insurance policies?
57:50 The risk of cyber attacks and an increasingly technologically driven world
59:38 Warren Buffett’s opinion on Elon Musk
1:00:50 Warren Buffett on investing in China
1:01:30 Is Donald Trump right about the US/China trade war?
1:04:00 Is Conflict between the US and China inevitable?
1:05:30 Would Buffett make a large acquisition in China?
1:07:30 Is the the US trade deficit a problem?
1:09:00 Is China’s slowly economic growth a concern?
1:11:20 How Warren defines truth success. 
1:12:15:  The importance of learning to communicate better
1:13:30 Warren Buffett’s life advice
1:14:30 Best investment advice
1:15:30 Warren Buffett’s morning routine
1:16:40 Is business school still worth it?
1:18:00 Buffett’s favorite song, book, and movie

Monday, August 19, 2019

Bank stocks fare better when the economy is growing strongly, companies and individuals are taking out more loans, and interest rates are high.

Berkshire Hathaway has been expanding its position in banks over the past year. It is now among the five biggest shareholders in Bank of America, JPMorgan Chase, Wells Fargo, Goldman Sachs, U.S. Bancorp and Bank of New York. Its latest disclosure of its holdings showed that the firm had added to its positions in some of those companies in the Q2 of 2019.

Monday, August 12, 2019

Buffett's BYD China investment could fall victim to the US China trade war

US politicians could soon pass new laws that would hurt one of Warren Buffett's investment. The law would prohibit public transit agencies from using Federal Funds to buy railcars or buses linked to the Chinese government. 

Many years ago Berkshire invested $232 Million into BYD, a Chinese electric car company.  In the past decade, BYD has grown into China's largest manufacturer of electric vehicles, including buses, where it has a significant business in the U.S. that employs about 800 workers at a plant in Lancaster, California. BYD has sold nearly 350 electric buses to communities in 14 U.S. states.

BYD has also been a major winner for Buffett, at least until recently. At the end of 2016, Berkshire's 8% stake in BYD was worth nearly $2 billion, making it Buffett's most valuable investment outside of the U.S., although still just a slice of Berkshire's $200 billion investment portfolio. 

Shares of the electric vehicle maker have dropped lately, however, falling to nearly $6.50 from a high of $10.50 back in late 2017, in part because tensions over trade and fears about the Chinese economy but also because of a decline in public subsidies for electric vehicles around the world. Buffett's stake was recently valued at $1.4 billion.