Picking the Brains of Buffett, Munger and Gates
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Three leading men on Wall Street sat down to speak with FOX Business Network in an interview that covered the spectrum of the financial universe from reform to the ongoing investigation into Goldman Sachs Group Inc. (NYSE: GS).
Berkshire Hathaway Inc. (NYSE: BRK.B) (NYSE: BRK.A) CEO Warren Buffett and Vice Chairman Charlie Munger, joined Microsoft Corp. (NASDAQ: MSFT) Chairman Bill Gates added their opinions to the value added tax in the U.S. among a number of other topics on Monday.
According to Munger, the VAT system is efficient, but there are fears about how the additional revenue from the taxes will be spent as much as well as the additional burden on taxpayers.
"The people that are against it are against it because they think it will work too well, that the politicians will get too much money and do too many dumb things with it, and there is a good deal to be said for that point of view," he said.
"In the end, we're not taxing enough and spending too much. One way or another we are going to have to close that gap in a major way," Buffet said.
On the overall economic outlook, Gates has a bright vision for the future as he sees innovation as still being a staple in the global system.
"We're still working our way out of it. The state budgets will be tight. We're way better off and this is going to be a great time for the country," Gates said.
On the other hand, Munger acknowledge that the relative place of the U.S. will surely deteriorate moving forward, saying "it just means other people are gaining in welfare faster because they come from a lower base."
The Oracle of Omaha, whose financial advice is eagerly sought after, said that he is looking to buy into solid companies including the emerging markets.
"I want to buy good companies anyplace they are, if they have good management I can understand them and the price is right. I'd love to buy a company in Japan, India or China you name it, or Omaha, Nebraska. We're looking for opportunities all the time and there are bound to be some that exist outside this country we don't hear about them as often if they're outside of this country, but I hope we do," Buffett said.
Buffet added that the current cash position of Berkshire Hathaway is around $22 billion, not including the cash at Burlington Northern Santa Fe Co. (NYSE: BNI) or its energy companies.
Buffett said that there is a person in place to take his position if he were in his words, "hit by a truck," as the firm has acquired talented mangers through its transactions and many capable successors have come up through the ranks.
"I know today what it would be if I died tonight… If I died tonight, there would be somebody in place within 24 hours and we know who it is and they’re – you know, we're all set to go," Buffett said.
Buffett did not pull any punches on the potential of the ratings agencies downgrading the U.S.
"They'd be out of their minds if they did. The United States, all of our debt is in our own currency. When you can print your own currency, you don't default. The problem with Greece, they can't print their own currency and that's the problem with various other countries," he said.
In a question for Gates that came just after Apple Inc. (NASDAQ: AAPL) sold its one-millionth iPad last week, the founder of Microsoft said that his company has several different tablet devices that is pursuing.
"We think that work with the pen that Microsoft pioneered will become a mainstream for students. It can give you a device that you can not only read, but also create documents at the same time," Gates said.
Even Gates had to acknowledge the tremendous success that Apple has had in the last decade by saying, "Yes, I think both in general and in the specific, Apple's done a great job."
To see more, see highlights from the interview below.
Berkshire Hathaway Inc. (NYSE: BRK.B) (NYSE: BRK.A) CEO Warren Buffett and Vice Chairman Charlie Munger, joined Microsoft Corp. (NASDAQ: MSFT) Chairman Bill Gates added their opinions to the value added tax in the U.S. among a number of other topics on Monday.
According to Munger, the VAT system is efficient, but there are fears about how the additional revenue from the taxes will be spent as much as well as the additional burden on taxpayers.
"The people that are against it are against it because they think it will work too well, that the politicians will get too much money and do too many dumb things with it, and there is a good deal to be said for that point of view," he said.
"In the end, we're not taxing enough and spending too much. One way or another we are going to have to close that gap in a major way," Buffet said.
On the overall economic outlook, Gates has a bright vision for the future as he sees innovation as still being a staple in the global system.
"We're still working our way out of it. The state budgets will be tight. We're way better off and this is going to be a great time for the country," Gates said.
On the other hand, Munger acknowledge that the relative place of the U.S. will surely deteriorate moving forward, saying "it just means other people are gaining in welfare faster because they come from a lower base."
The Oracle of Omaha, whose financial advice is eagerly sought after, said that he is looking to buy into solid companies including the emerging markets.
"I want to buy good companies anyplace they are, if they have good management I can understand them and the price is right. I'd love to buy a company in Japan, India or China you name it, or Omaha, Nebraska. We're looking for opportunities all the time and there are bound to be some that exist outside this country we don't hear about them as often if they're outside of this country, but I hope we do," Buffett said.
Buffet added that the current cash position of Berkshire Hathaway is around $22 billion, not including the cash at Burlington Northern Santa Fe Co. (NYSE: BNI) or its energy companies.
Buffett said that there is a person in place to take his position if he were in his words, "hit by a truck," as the firm has acquired talented mangers through its transactions and many capable successors have come up through the ranks.
"I know today what it would be if I died tonight… If I died tonight, there would be somebody in place within 24 hours and we know who it is and they’re – you know, we're all set to go," Buffett said.
Buffett did not pull any punches on the potential of the ratings agencies downgrading the U.S.
"They'd be out of their minds if they did. The United States, all of our debt is in our own currency. When you can print your own currency, you don't default. The problem with Greece, they can't print their own currency and that's the problem with various other countries," he said.
In a question for Gates that came just after Apple Inc. (NASDAQ: AAPL) sold its one-millionth iPad last week, the founder of Microsoft said that his company has several different tablet devices that is pursuing.
"We think that work with the pen that Microsoft pioneered will become a mainstream for students. It can give you a device that you can not only read, but also create documents at the same time," Gates said.
Even Gates had to acknowledge the tremendous success that Apple has had in the last decade by saying, "Yes, I think both in general and in the specific, Apple's done a great job."
To see more, see highlights from the interview below.
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