>> we all want lunch. >> which is just another excuse to pop more champagne. [ cork pops ] safari time! [ corks popping ] safari time! [ corks popping ] >> oh! welcome to "on the money." i'm becky quinn. our conversation with the world's greatest investor. warren buffett talks about his optimism, his unusual diet and what he hates about his job. >> that is pure agony and i usually postpone it. >> where are prices at the pump going next? answers from the man who runs the world's largest oil and gas company. why you're probably paying too much for car insurance and how to cut your bill and no, this isn't a commercial. if you have had it up to here with the nasty weather and you want fun in the sun, we've got the best new travel apps to help you get there. "on the money" starts right now. >> announcer: this is "on the money." your money, your life, your future. now, becky quick.

>> here's a look at what's making news as we head into a new week "on the money." a much stronger than expected jobs report for february. the labor department says the economy created 295,000 new jobs last month and the unemployment rate fell by .2 to 5.5%. wage growth though was slow. but the strengthening economy could increase the chances that the federal reserve would raise interest rates at its june meeting. that helped send stocks down in early trading on friday. and they continued down later in the day. earlier in the week, the nasdaq did something it hadn't done in over 15 years, closing above 5,000 on monday. but it held that number for, oh, about a total of 15 minutes before falling on the tuesday open. auto sales rose in february. though slightly less than expected. it was at least in part because of the bad weather. gm was up 4%. ford, down 2%. chrysler, up 6%. toyota, up 13%. it is the end of an era for ringling brothers barnum and

bailey circus. the elephants are packing up their trunks and heading home. the circus says it will no longer use elephant acts by the year 2018. they've been met with protests over how the pack aderms are treated in the circus. warren buffett's company owns more than 80 businesses including geico, burlington northern, and has major stakes in giants like coca-cola, ibm and american express. we begin by asking the oracle of omaha how he thinks the economy's doing. >> we're continuing to make progress just like we have at a fairly steady pace ever since the fall of 2009. things hit bottom. the whole country was basically paralyzed for a period of time. and once we started coming back, we kept coming back. i get figures by the day almost, certainly by the week. and most of our businesses are

doing more business than they were last year. and they are doing more business last year than the year before. we've not hit anything like a boom type. but compared to the rest of the world. the united states has really been leading the world out of what was sort of the recession to end all recessions. >> even though we have been doing better and better and gains have continued to come in, you yourself have said that those gains aren't distributed evenly. >> no. >> income inequality is a growing concern in this country and it's certainly something that politicians are talking about more and more frequently. how would you fix income inequality? >> the best way is through the earned income tax credit. the market system is a pretty darn good system for allocating labor and resources. the market system is not going to take care of the bottom 20% of the country. education helps in all of that. but we have a more and more specialized economy. and a lot of people are going to get left way beyond, while a great many people prosper.

during the last few years, i mean, the stock markets tripled. corporate, a percentage of gdp. savers are getting nothing on their money. and many people are really struggling. so the most efficient way to keep the benefits of the market system and not distort supply and demand, but at the same time, enable a very rich society to take care of those who just don't fit in that well to the society from an economic standpoint, is through the earned income tax credit. and we can do it. we've done some of it. and you want people to work. i mean, that's why it's called earned income. but we can do a lot better for those people. while at the same time, people like myself are going to, you know, enjoy ridiculous incomes. >> what about the idea of raising minimum wage across the country? >> well, if you raise the minimum wage, and i'm not against it, but it distorts supply and demand. if i got a $20 minimum wage

would solve things for people, i'd be all for it. but all it means is that you'd have a whole lot more people unemployed. >> you're about seven years into a ten-year bet that you made with a guy who runs a fund of funds for hedge funds. he thought he'd be better off putting $1 million in five different hedge funds over that ten-year period. you thought you'd go up against him with your $1 million put into an index fund, s&p 500 index fund. you're way ahead in that bet up to seven years. how much further are you? >> i think it's 40 percentage points. maybe a little more than 40 percentage points. almost a cinch to win it. the money incidentally goes to a charity. i'd offer that bet to anybody. i admire -- the fella's name is ted seides. i admire the fact he put his money where his mouth is. the rest of the guys didn't. >> the point of the whole thing is hedge funds charge 2% and take 20% of the profits.

index funds, i think the vanguard index fund is something like 17 wbasis points. you say paying for performance is okay unless you're paying a whole lot for not great performance. >> exactly. of the 40-some points i think i'm ahead, almost 20 points has gone for the fees of the people who are running these fund, which are getting killed by the index fund where you pay practically nothing. and the managers of the funds have done very well. 2 and 20. just think of that. you get $10 billion under management, you know, and you're getting $200 million a year. you don't have to do that very long. you really have to be a good salesman. i mean, there's more money made in the investment management business by being a good salesman than by being a good investment manager. >> you've controlled the interest in berkshire hathaway for 50 years. this is the 50th year anniversary that you took over. what is it you like most about

your job, what is it you like the least? >> the fact i get to do whatever i like. i mean, i get to do exactly every day what i love doing and i get to do it with people i love. all the decisions are elective. one thing i don't like is when i have to make a change. when i tell somebody i think somebody else can do a better job. that is pure agony. i usually postpone it. suck my thumb. do all kinds of things before i finally carry it out. that's the only unpleasant part of my job. >> you've said that basically your diet, your tastes haven't changed since you were about 6 years old. >> that's true. >> you still drink about five coca-colas a day. >> i do drink -- >> you love, we're not talking about the low sugar -- >> oh, no, no. i get about 700, 750 calorie also a day from coca-cola. about a quarter of me. if you look at me, you're looking at about one-quarter coca-cola. >> i think you're the only

person i know i can say that about. i love you love potato stix. i know you ate strawberry ice cream this morning at 4:00 a.m. before you came here. >> it is good, too. i recommend it, if you haven't tried it. >> how do you get to do everything you do on a diet like that, because that's not something that any doctor would tell you is the right way to do things. >> it's a happy diet. as i tell people, i looked up the mortality of people by age and i find out that 6-year-olds died less than any other age group and i thought, i'll eat what they eat. >> warren, thank you very much for joining us today. >> okay, thank you. back to the ice cream. >> up next, we're "on the money. "we're all happy to fill her up now that gas so cheap but can we expect the savings to continue? exxon mobil's ceo tells us what's up with oil prices. later, you have to have it if you are driving a car, but you are probably paying too much. how to lower your auto insurance

rates. take a look at how the stock market ended the week.

the price of gas is about a dollar less a gallon than it was a year ago. it's a dream for drivers and potential nightmare for oil producers. yet america's largest oil and gas company isn't fazed. we sat down with exxon mobil's ceo to find out the impact if oil prices fall below $40 and what it means for your money. >> is the immediate effect for everyone will be an impact on their cash flow, just because you produce the same volume, you're getting less money for it. i do think though that people should be prepared for some more

val ti volatility in this market. >> if you look at what really is going to impact prices, do you think it's this additional production we've seen in the united states and canada? do you think it's saudi arabia, the decision to cut production or not? the demand picture? what to you is the biggest determinate? >> it is all of those. what set this off when we last talked back in december, i think i made the observation then that it was really fundamental supply demand. it was getting itself out of balance. and the market's realization that that was happening. and year after year, there's another million-plus barrels a day coming out of north america. it just keeps coming, regardless of whether there's a real demand or not. you combine that with what has been a fairly modest demand for the last couple years due to economic performance. the two collided and that's what set this off. >> i know it's hard to put your finger on it or to kind of predict where gases are going. i know you've said volatile.

i'd say you have a better shot at a prediction than anybody else. your gut-wrench? you've been doing this a long time. >> i never pick a number. you know me. first, because i would be incorrect. second, because i don't want to attract any attention from some regulator who thinks i'm trying to influence the price. i think what i would just say is we're operating today with -- in this 40 to $50 kind of environment that remains scoped for things to go belong that for a period of time, largely with these inventory numbers. to go higher, to the extent there are disruptions of supply elsewhere in the world. >> we spoke with warren buffett. obviously, you know that berkshire hathaway sold down a position in exxon mobil. says it's a great company, very well run. but just thinks he can find better places to deploy the money. what do you tell investors who are nervous about these volatile

oil prices? >> we have always considered ourselves to be for the long-term investor, people who buy our stock, they own it for generations. and i think we're viewed as stable. we can withstand a lot of things going the wrong direction in our space that our competitors operated as well. i think it's really a question if you want to own this part of the market in your portfolio, we believe we're the best. we're the best thing to own. >> exxon mobil was the largest market cap company for forever and ever. you watched apple actually just soar and take off. do you ever think about that, about how big they are, the biggest market cap? >> no, i never thought about it when we were the biggest, quite frankly. people -- other people make a lot out of that. it's certainly not any objective. it's not surprising a product like an apple would come along. we're a commodity business. we do have some differentiated products in the downstream of

chemicals. but we're going to be one of these steady hold, safe. you can sleep well at night. you can count on the dividend. stocks. and so we're kind of steady eddie as p is tis the way i see >> up next, we are "on the money." don't spin your wheels when it comes to saving money. why you may be paying too much for car insurance and what you can do about it. later, need a vacation but dread the hassle of planning one? the coolest new ways to get the best travel deals.

everyone who drives needs it. most everyone grumbles about it. but a lot of people don't have to pay as much as they are right now. of course we're talking auto insurance. you could save a lot by doing a little comparison shopping. personal finance correspondent sheryl epperson is here. >> it is something that everyone watts to try to figure out, how can i cut my car insurance rate, i want to try to save some money. it's possible if you just shop around. nerd wallet did a survey about two years ago and they found the average person overpays $368 a year on car insurance just because they don't shop around. they stick with what they know. they don't buy exactly the amount of insurance they need. >> like looking for exactly the amount you need, i guess that's just stuff that takes a little time, you're saying do it? >> yeah, definitely look around and see what you need. texas, for example. you might pay $1400 on average. but you can get something for as

low as a little over $1,000. you can save about 30% on your insurance. >> one old axiom that comes to mind is you get what you pay for. do you have to worry they will not cover your claims? >> not necessarily. the one thing you also need to look at is the deductible. they say, well, i want a lower premium. i'll pay a higher deductible. that's a good way to save, you know, on your monthly car insurance as well. but you have to make sure you can actually cover that deductible when the time comes. but you could save, you know, 20% or so right there by doing that. the other thing you want to look at -- yeah, discounts. what you're a good student, if it's a teenage driver. their rates are pretty high. if they have a good academic record, they could lower their rates by as much as 16% according to insure.com. you would think being married is going to cut my rate. but if both of you have a clean driving record, being married there have been studies that show you have future accidents could you could get a lower rate for that. also linking your home and your

consider insurance, having the same carrier, that can be a significant discount for you as well. >> so, saying comparison shop is pretty easy. once you get into the details, maybe a little tricky. any hints for telling people how? is there one place you can go and do comparison shopping? >> well, going to every single site is what a lot people say is just so time consuming and that's why they get frustrated with car insurance shop. there are some sites you can go to, put in your zip code and do some comparison shopping. you can go to nerd wallet.com. >> what's nerd wallet? >> a finance website, a lot of interesting things on there. the other thing is make sure you know what's going into this rate. the clean driving record, that's key. that's going to keep your premium down. you want to know if you're a younger driver and you have less experience, you're going to be paying more. also keep in mind that -- how much you use that car is also going to impact how much you pay in car insurance. the one thing people don't think about, i know i love to talk

about credit scores. it affects every aspect of your life. it really does in terms of car insurance. they look at your credit history, your credit score, and this will determine the rate you get. >> that's improved over time, you need to point that out to your car insurance? >> exactly. >> sharon, thank you so much. >> sure. >> up next "on the money," a look at the news for the week ahead. and get your bags packed for your next getaway. the hottest new apps to help you plan your escape to the sun.

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can go to our website, otm.cnbc.com. followen on twitter @onthemoney. on tuesday, we'll be getting the labor department's report on job openings for january. on wednesday, the energy department releases the petroleum status report. thursday brings the closely watched retail sales numbers for february. on friday, the producer price index for february's out. also on friday, the 22nd annual south by southwest music film and interactive festival kicks off of course in austin, texas. if you've got cabin fever and are aching to get away from the cold and snow, you might be thinking about planning your next trip. can you travel better or at least more cheaply with the help of some new apps that are out there? here to separate the good from the bad and the ugly is amy farley, news editor at travel and leisure magazine. what are these new apps? how are they different? some of the new apps and sites

from what we know in the past, things like price line? >> one thing i love, it's not so new as it is up and coming, but it's this website called audisio. what's great about it, it is so flexible. i think a lot of people, your used to knowing where you're going and what your dates are. adioso says if you can be more flexible, we kill find you great rates. if you know you want to go to europe but you don't know exactly when, you can search for the lowest price. >> in terms of the travel price, what do you like aside from just adioso? >> there's another website called hotel power. it's for people looking for discounts and luxury hotels. hotel power is very interesting because it collects deals around the web that usually only travel advisers see. so something like three nights for the price of two at a luxury hotel. because luxury hotels don't like to be seen discounting on online websites but they will do it if

they can sort of disguise it. what you have to do is hotel power is pay $50 for memberships that end you can get deep discounts. >> that's interesting. what are some of the hottest travel trends, best places to go? >> right now the best places to go, what everybody's talking about, travel to cuba obviously. what's interesting about cuba is you can go, but still it's hard to get there. there's a website called cheap air which actually now lets you book flights to cuba. you'd have to travel through a different country like mexico to get there. you can also if you want, an experience that really gets at the cultural heart of cuba, you can go with a tour operator such as geoexpeditions. so cuba's on everybody's minds. mirro mar is a big deal as well. it's all about going to these areas that used to be no go zones. >> one of the first people from our cut whaur got lture who get there. >> miramar doesn't have a lot of hotels so look at river cruises. it's a great way to experience a

country and stay in a really great place. >> we've been watching prices at the pump drop. some people assumes cheaper fares when it comes to airlines. >> yeah, no, that's not going to happen. they're not going to pass those prices down to us. it's interesting, there's a couple of european characters that are low-cost carriers and they're now flying into the u.s. they are offering extraordinarily cheap rates to europe. usually, we're paying upwards of $1,000 to get to europe from the u.s. right now, there's an airline call called wow air that will take you to it's land and then you can connect into the rest of europe. you can get to iceland this summer for $400, $500 on wow air. another airline called norwegian air which has been expanding throughout the u.s. to the irritation of legacy carriers in the u.s. it will offer flights into london for $600. that's unheard of for most carriers. >> any last-minute tip if you're trying to book? trying to jump around? >> expedia, or bits, sites like

that, you can often get great rates. there's hotel tonight which is a last-minute hotel booking site. or app rather. they offer deep discounts, 48 hours, 24 hours in advance. i also would recommend, again, going back to audiso and using that flexibility to your advantage. >> thank you for joining us. that is our show for today. i'm becky quick. thank you so much for being here with us. next week micro housing. will tiny apartments be the next big thing in real estate? we're on the money. i'll see you next weekend. female announcer: want your best rest ever?

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>> narrator: in this episode of "american greed"... enter the dangerous underground world of new york sandhogs. these tunnel-digging construction workers hire melissa king to ensure the safety of their retirement funds. but the only one she takes care of is herself. >> one check for $50,000, another check for $50,000 -- three checks for $50,000. >> narrator: she steals millions, then uses the loot to build a life of luxury. >> this woman just burned through all the money like it was monopoly money. >> narrator: and later, meet a western con man. carl estep promises romance and a golden opportunity.