Warren Buffet Watch

Warren Buffet appeared live in CNBC on March 2,2011. I manage to download a copy transcript of his interview. Its a 60 pages long pdf file, attached below with my highlight.

CNBC Warren Buffet Interview
To make it easy to review, i list down the majors :

Some of Warren Buffet's associate company : Coca-Cola,Wells Fargo, Wrigley,See's Candy,Iscar,Wal-Mart,BNSF Railway,GEICO,Johns Manville,Dairy Queen,Flight Safety,American Express,Fruit of the Loom,Marmon,Netjets,MarquisJet,

• He is not worry about the oil prices issue regarding what's happening in Libya. It isn't a real supply situation yet, but market anticipate.
• TTI, a world class leader in quality consumer, professional and industrial products is booming in Asia. I think its a Hong Kong company. Its main product including power tools and accessories, outdoor products, and floor care.
• The demand for housing comes from household formation. For example, if we build 2 million houses and they were no 2 million families created, it will be a excess supply. The only way to solve that is to underproduce compared to household formations.
• Warren do not like bonds. He think its a terrible mistake to buy into fixed dollar investments at this kind of rates.
• While commodities price are going up and up everyday, Warren just don't like them. He like income producing assets.
• Investment is about you buy the asset now and the asset itself deliver more money over time. For example, Coca-Cola, Wells Fargo and McDonalds.
• The problem with commodities is you are buying something and hope somebody else will pay you more for the item. The item itself is not doing you anything. Its speculation.
• An example about gold. If you took all the gold in the world, it makes a cube 67 feet and worth about $7 trillion. Its roughly 1/3 of the value of all stocks in US. Do you prefer to have 1/3 of all the stocks in US or owning that block of gold, which can't do anything.

Warren Buffet :" I like business or i like my earning power as the best assets in a time of inflation. They really can't be taken away"

• A fair price to buy a company is one that we think we're going to get our money worth in terms of future earnings.
• US Dollar will become less important over time because America's dominance of world economic system will diminish.
• Importance of liquidity and not getting overleveraged.
• People want to be entertained and want to be informed. The demand for media is huge, is worldwide, its going to go on forever. 

I don't have to be right about everything or even understand about everything. I just have to right on the decisions i make. So i stay with the simple things. If i don't see any easy decision, i don't play

•  A century or so ago, nobody ever heard of monetary policy or fiscal policy. We had recession, it will cured themselves. Millions of American were trying to figure out how to do things better next day. Warren don't like fiscal policy to stimulate the economy.

Inflation is the ultimate Tax. It taxes people who don't know they're being taxed. It taxes people who believe in paper money. Paper money generally has a lousy future.

• Productivity has improved very significantly. If productivity hadn't improved, we'd have less unemployment right now. But, productivity is great over time. More output is what really solves problems over time. When we have more output per capita, then we'll fight for it.