Monday, March 09, 2009

Becky Quick Warren Buffett Interview on CNBC

Today CNBC's Rebbecca (Becky) Quick (Anchor Women of CNBC) spent three hours with Billionaire investor Warren Buffett, Chairman and CEO of Berkshire Hathaway (BRKA Charts).

Key Points:

Mark-to-Market Accounting: Buffett said he was not in favor of eliminating "market to market" accounting. He says too many took advantage of accounting tricks in the past so this is needed to keep companies honest. He suggested a great idea that we change the rules that require companies to raise capital on mark-to-market triggers.

Uptick Rule: Buffett is in favor or reinstating the uptick rule.

Market timing: Buffett said nobody can time the market, including him. Sure he would have done better to have waited but he still likes good stocks for the long term.

On President Obama's Administration: Washington's message about the economy has been "muddled." He has not spoken to president Obama in many months but he has spoken to key people in his administration. He thinks they are making mistakes:
  • We've had an economic Pearl Harbor. "You have got to win the economic war, that is the only priority."
  • Doing too much too fast on other things like carbon emissions and health care. They are not as important for the moment.
  • A lot of things attached to the "stimulus" plan were not what he would like to see right now.
  • "you are not going to get people behind you if you try and cram things down their throat" in reference to the "Cram down" rule forcing banks to break legal contracts called mortgages.
  • When you went back to Pearl Harbor, you did not have 535 Congress people criticizing every move FDR made.
  • Speed of turnaround depends on wisdom of government policies.
I will be updating this article during the day so check back tomorrow.

Since 12/31/98 "Kirk's Newsletter Explore Portfolio" is UP 94% vs. S&P500 DOWN 14% vs. NASDAQ down 28% vs. Warren Buffett's Berkshire Hathaway (BRKA) up 37% (All through 12/31/08) (More Info)

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