>> yeah, absolutely. we both -- >> we both hated it. >> and we had the ability, we were fortunate, we could create the company to some extent that we wanted to have. and i've always said, it's crazy to be a painter painting something at the end that is not the painting you wanted to have. and berkshire is a sort of painting we have not walked into some huge organization to have to crawl through the progressions and the politics and we have created what we wanted to create. >> i don't think we can fix a big bureaucracy. we can create something that didn't become a big bureaucracy, but we couldn't fix one already bureaucratic. >> charlie, warren, bill, i want to thank all three of you for your time. folks, that does it for us today. make sure to join us tomorrow. right now it's time for "squawk on the street. ♪

good monday morning. welcome to" squawk on the street." i'm carl quintanilla with the others here. we are watching disney europe is green, oil above 70 as the iran deal deadline is this weekend. and we begin with futures looking to build on the rally. buffett pushing back on bubble fears saying he would easily choose stocks over bonds plus, apple love the oracle of omaha saying he likes apple stocks so much he would love to own all of it. and necessastle looking to jump-start the coffee business with starbucks we'll be joined exclusively this hour. but first up, warren buffett has a message for investors in this market, choose stocks over bonds. becky quick asked him if he's concerned about a stock market

bubble in light of recent record highs. here's his response. >> this is not one of those times. now, if government bonds go to 7% or 8%, which means if you own a long bond, you'll get killed the stock you bought now will not necessarily look attractive. it probably won't be attractive. i mean, it -- interest rates are like gravity if interest rates are 1% and going to be that for 100 years, obviously, anything that yields you 2% to 3% is way better but i don't think they're going to be 1% for 100 years. >> i said it wouldn't take him a nanosecond to choose equities over treasuries. >> well, look, once again, he is just joyful. he talks about owning index funds for everybody. just says, frankly, that there are not a lot of companies that he would like to buy right now then he goes forward and talks

about companies he would like to buy during the break, david. >> yeah. right. >> right >> correct >> yes you're referring specifically to apple, which he said he would like to own all of even munger in his own way said they have been too resistant to buying more shares. >> that's why i wanted to mention it i felt the most pointed moment was when munger said, we should have bought more and that is just one of those statements from someone whom i revere saying, look, the stock is just too cheap. obviously, we are not talking about the ecosystem. but the takeaway is that the largest stock is too cheap, then maybe the market is not so bad >> maybe not it is funny, buffett also spent some of the weekend meeting discussing his failure not having seen the promise of alphabet and amazon. he's talked about amazon a number of times, calling it almost a miracle what bezos

pulled off there but apple is the one they have chosen to spend a lot of their cash on. on thou although there's plenty of cash at berkshire. >> they said the cash should be $100 billion over $30 billion. but if there was a deal, they would get it done. he did go into his view on apple. munger said it was reasonably priced and strong, but this is what buffett said. >> we are not buying a stock when we buy apple. we are buying 5% of a business we buy 100% of some businesses and when they are publicly held, we buy 5%. we bring the same thinking to it and we like very much the economics of their activities. and we like the management and the way they think and the way they act >> it's coming from two men who don't use an iphone. buffett said he has a 10, but has been given one and doesn't know how to use it yet.

>> yeah, i think this is one where they think young i think there are a tremendous number of people who missed this because they don't talk to their kids or came late to it. but that was one of the most important things they don't think they necessarily came late to this one. they were talking about how they feel that there is still plenty ahead. that is so different from so many of the analysts who look at the universe of suppliers, that sell into apple, make it and sometimes the analysts say steve jobs took the company to husband grave. that is amazing given that tim cook created tremendous amounts. >> the apple stock moved up sharply on friday when warren

buffett told becky then of the additional 75 million shares berkshire purchased over the weekend and filing, or in the divulging of the full stake, which is some $45 billion-plus in a company more than a $90 billion market value, that's less than 30%. and not that far from the trillion-dollar mark at this point. really not that many points to go given how many shares outstanding there are. >> but what i thought was curious was that warren buffett talked directly about the buy-back he said, listen, if they are going to buy it back, we don't mind going up in size. and we have heard that one other time we heard that with ibm and i thought it was really curious that there is ibm, which they said just keeps buying back stock. we're happy to have that we keep getting bigger and bigger because of the buy-back then he blew it out and picked, from his point of view, the wrong technology company

he said he really didn't understand it in the end and yet he says he understands apple, but he understands apple and used a razor blade he didn't correctly see the cloud coming or else he would have bought amazon and alphabet. i don't think he understood the concept of the clad. maybe that's because in this particular case, the cloud was something that you needed your pc to be working on. you needed your cell phone i mean, the cloud is something that made it so your cell phone is a mole. your cell phone, understand, everything from health care to sports, whatever and i think that by not having a cell phone, they missed the cloud. and they would have bought amazon or alphabet had they had a cell phone >> they didn't frame it like that, but he said, i blew it as he said before and called bezos once again a brilliant thinking it reminds me that he initiates

amazon to outperform the $19 target on the notion that cloud, aws, will continue to support retail. >> obviously, i committed heresy by saying they got something wrong. i should immediately add to the fact, they are the best there. is ted williams, 60% of the time ted williams did not hit the ball so that didn't make him aing what i mean, 400, can you imagine that these guys are 400 hitters every year >> yeah. it's quite a thing to achieve, yeah >> wells is the other interesting point here, said that it's a good fundamental business likely to outperform the rivals over the next ten years. he got to a point where he talked about bad headlines i like bad news that isn't going to last. you have to figure out to make sure it is not permanent. >> yeah, i think that he validated tim sloan, that he

pushed him, wasn't he part of the old team i just think he's very reluctant to sell some of these stocks over time that have done well. i don't know what would get him to sell if that didn't get him to sell. >> they would put it behind him at that point. they would weather a difficult storm. the marketing push that wells fargo has been on lately, whether it is the ads in both print and on television as well. but awe gueggressive marketing. >> yeah, i think the ads correctly say, listen, we're a new old wells fargo. i thought that was interesting because it wasn't like they said, the tag line is not, hey, we're all great voice big rate that was a very gutty move by saying we're the new wells fargo. admit it i liked it yeah it was really hard to miss >> yeah. i liked the fact that they

acknowledged they made a mistake and now there's a new wells. and i understand and think warren buffett's decision to stick with them is significant and i think it will be a good stock. it won't be as good as jpmorgan. by the way, they love jpmorgan. >> right. >> and it is interesting, there was a question about goldman sachs and whether goldman sachs is doing the wrong think by trading bitcoin. and warren buffett very cheerily said, they are servicing their client they're not betting on bitcoin because bitcoin calm in during a huge amount of attack. it was just infighting fire. it was their moment they didn't think bad of it. >> bitcoin got called every name in the book to a curd to a nonmore productive asset, to a useless artificial gold as munger put it this morning. >> they struggled to come up with a new negative term i thought curd was an interesting one. i don't know if you used that one lately, but it was off limits at home

>> i haven't >> no? >> no. >> buffett weighed in on regulations applying specifically to facebook listen to that >> i like good news -- or bad news that isn't going to last. and i'm not saying that's one of them, but bad headlines don't bother me. i mean, i have bad headlines when i bought the stock after two or three months of pearl harbor you're going to have bad headlines for a long time. so i'm not worried about -- we made the most money when there's been temporary bad news over time >> he did say the privacy angle was very important and that congress has only started to scratch the surface >> well, i think that congress is uniquely not equipped to take this on. there's just -- when facebook picked senator kyle, for instance, to analyze whether there's bias, senator kyle is a

rebuked senator in the senate. i think they picked someone from the justice department to look at it from the other side. so congress looks at this and says, they have really picked really fine people to analyze this we don't have anything to go on now. they have kind of blunted us so they apologized and picked the outsiders. i know, i wanted ted wells i used to have senator cotton with cramer. >> i remember the show >> i didn't get anything but he became the chief. not there, he's there. >> you've done okay. >> i've done okay. >> there's still time for you. >> yes, absolutely >> have you seen charlie munger? he's 95. 94, sorry. you are going to be fine you have so many years >> you think >> i've got good stories on the other side >> there's that.

we have two of the biggest names in coffee teaming up in a global alliance nestle will pay starbucks $7.2 billion to market the coffey chain's consumer products around the world. and we'll talk to kevin johnson and mark schneider later this hour the futures are all green. don't go away. the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow.

mr. elliot, what's your wiwifi?ssword? wifi's ordinary. basic. do i look basic? nope! which is why i have xfinity xfi. it's super fast and you can control every device in the house. [ child offscreen ] hey! let's basement. and thanks to these xfi pods, the signal reaches down here, too. so sophie, i have an xfi password, and it's "daditude". simple. easy. awesome. xfinity. the future of awesome. welcome back breaking news to share with you this morning, m&a related,

athenahealth is in a bid for elliott management elliott in recent weeks has been putting together the financing for a bid that i'm told will be between $155 and $160 a share. they are also raising equity from the partners for a deal of this size, we'll call it roughly $7 billion in total, including a athena's debt. elliott, according to people familiar with the situation, is mounting an all cash offer to buy athena health between $155 and $160 a share it was a year ago that they took a 9.2% we got a 13 defiling, but not much else in that time i'm told by people familiar with the conversation between the two companies, there's been dialogue but frustration on the part of

elliott that athena has not done more to fix the execution problems for a key product the product is ahead of the competitors being that it is cloud-based. a provider of all sorts of different services to medical practitioners, whether they be hospital or medical practices, to sort of help them with all of their information needs. but the questions on the part of elliott in terms of execution, but elliott wants to own the entire company and again, his or has been between $155 and $160. while they have been working on this, it's been fully received by athena at this point, jonathan bush, no stranger to our air, the ceo of the company that comes on frequently, outspoken gentleman he is, as well, added a chairman not that long ago on february 7th that we know well, one jeff immelt

he was brought on to help with the criticism he received for elliott. he put in effect a management team for what is there, but elliott no stranger, guys, to making bids. we know them as a large activist fund with a lot of different sis palestinians within that duh they do buy things gigamom is one they bought there at the end and they were there for lifelock at the end here's the situation they are able to raise the bid >> i think it is great to see them in there. after they bought the stake, the business basically fell off the

clip they were down 33% last quarter. my understanding is that the corporate government didn't feel they would improove >> what they have is not really the person you bring in to clean up the state >> athena has that advantage as the cloud base, but athena has not succeeded necessarily in executing the orders available to them. and that has been a frustration. but interestingly, el will uh yo -- elliott decided not to go that route he clearly didn't get where he wanted what would imagine if they were

success f successful >> these guys have the data. if you're doing a knee scope in omaha and doing a knee scope in new york, it should be one price. this is a company to me that feels for like optic you manage to be looking at it it is funny because i think in some ways the consortion of apple, jpmorgan, amazon and berkshire, plus apple, because apple has a great health care plan because of what they have with the watch, would be a killer if i were the -- i would buy athena you would buy athena if you are a single pair to see what they have >> l.a.'s basin is lower here.

the stock did run up a year ago when they were reporting the 9.2% stake and then has come down as jim eluded to as a result of the financial missteps >> oh, terrible. >> not quite hitting the quarters they hoped. >> thus one of those things, at least the public records doesn't own more than $5,000 elliott is among the largest holders and wants to be the largest. >> we'll continue to watch that, thank you, david we'll look at the pre-market this morning ahead we'll talk to kevin johnson and mark schneider about their $7 billion global products deal in a moment s where i trade and mane my portfolio.

since i added futures, i have access to the oil markets and gold markets. okay. i'm plugged into equities - trade confirmed - and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit learnfuturestoday.com to see what adding futures can do for you. well, it'sonce again.eason >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade.

coming up this morning, we'll talk to the ceo of starbucks and nestle and we'll get cramer's picks don't go away.

anyone can get you ready, holiday inn express gets you the readiest. because ready gives a pep talk. showtime! but the readiest gives a pep rally. i cleared my inbox! holiday inn express, be the readiest. anna and a little nervous. into retirement... but not so much about what market volatility may do

to their retirement savings. that's because they have a shield annuity from brighthouse financial, which allows them to take advantage of growth opportunities in up markets, while maintaining a level of protection in down markets. so they can focus on new things like exotic snacks. talk with your advisor about shield annuities from brighthouse financial- established by metlife. all right. time for the mad dash counting down to the opening bell we'll go right until the opening bell what are you focused on? >> the good report about the consumer cyclicals they come out to make mcdonald's a conviction buy multi-year, undervalued story, international better than domestic domestic is coming on strong i like the timing here very

much i went to a street conference this weekend teaching with jeff mackey talking about this being great long and the qsr is a great short, but one of the reasons why he liked the report is on the same line as the people in the car who say, what is that? i like coffee. if you can just put it in and get right through versus -- and what is that repeat that? that would be fantastic, particularly if that one, david, when you get to the hamptons and you're like, hey, the fries, that's fry anyway, i like the call. >> they have come a long way in the old days >> yes, steve easterbrook, we hear that the franchises love him. i was with someone who had 18

the other day. there was a person on the panel who has 30, they love him. these people determine how good the company is >> it reminds me of the shake shaft over at jpmorgan to sell after the huge run after earnings on friday. >> and they make a pointed comment. it's not anything about what they love, it is just valuation. and i think that the more that mcdonald's depose natural, the more people will be ex sited about. wendy's was going on "mad money. i think it's a great call. >> 4x with the longer term things >> yes, those are just bumps mcdonald's is a multi-year com story they say i couldn't agree more. not that expensive versus historical. >> we'll see how that helps out the dow today. we'll get to the s&p at the bottom of the screen to check out the opening bell at the new

york stock exchange this morning. today it is the american lung association at the nasdaq kicking off lung health week earnings-wise, disney is the big dow component. >> i think the disney narrative is going to be, once again, espn, because they lost a lot. but this hit machine, when you saw that "avengers" first went to a billion i won't give away what happened in "avengers" but my wife wept she wept she made me send an e-mail just hoping there could be -- i want to have hope i want to have hope. >> i see >> everyone has to see it. but some people are a little bit more impacted than others.

>> i'm so done with all the movies >> i'm done with you i'm done with him, i'm done with you. this movie is amazing. >> you don't want to e-mail the studio chief >> my wife said, you have to find out, you have to find out i just can't have it be this way. i said, i can't, he's a ceo. just do it do it! come on! she has seen "black panther" four times, just so you know >> it is setting records. >> it deserves to. it's a parable >> it's the biggest opening of the film not inflation adjusting but in real dollars. >> it's a must-see tyson is a miss despite taxes, lower taxes adding 17 cents, jim >> and they said it was channeling when you use the term challenging, i'm not finding to say it is not challenging. any company that says it is challenging, i slow my lot in with them. i didn't mean that about being

through with you >> that's okay >> it was an important -- >> it is not an important movie but that's okay. >> yes, it is. it's a modern day parable. >> for what? tell me. >> for the way the world should be. >> okay, i see i didn't realize that. now i'll go see it >> much bigger than you think. >> it is just about the growth of population outstripping the food supply? >> yes, it is. yes, it is that's all i will say. because there's too many -- i'm not spoiling this one. it is too fabulous >> all right >> sorry to take us away from -- >> in other food-related stories -- >> the quarter is about, i don't want to lose the theme here, it is about to continually have hits and when does that matter more than a month at espn, david? >> i don't know when it's going to outweigh the loss at espn it seems that the narrative that

we know about and which is occurring, namely people pulling away from the bundle, is dictating what goes on with many of the stocks. look at our parent company look at -- look at dish. just look around it doesn't matter if you have -- by the way, dish doesn't have as hutch broadbrand, but regardless of broadband being in the relationship and the case for does knee as it starts what would seem to be well-positioned sports and entertainment when they get going >> i think that cbs over the top is a bright spot and why wouldn't disney have the -- plus the fox deal the fox deal is not being done to on secure espn. what, i'm over here? >> i heard something >> i'll get that for you >> we're going to hear a lot

disney is tomorrow fox later in the week. along with invidia. >> holy cow, the stock is up a lot of people are betting against invidia because this is where the crypto business is falling off. but understand, those betting on it and think this is going to be the borderline quarter, you have to be prepared to say crypto cards are not as big. >> what are your thoughts on oil today? not just above 70 for the first time in three years, but the gas average $2.90 up two weeks in a row. >> fortunately, everybody's cars use less gasoline. i remember speaking to charlie sharf to show a huge spike in consumer spending and there

wasn't i think there could be a slowdown but i don't think so. >> despite the trend to suvs and pickups and the death of the sedan -- >> i'm worried about what will happen with the iran deal. that's my concern. yeah >> apple over a few points away from the trillion-dollar designation. >> we aught to talk about nestle nestle is looking to jump-start the coffee business paying $7 million to starbucks for their marketing of their products around the world joining me is the starbucks ceo kevin johnson, nestle's ceo mark schneider. this is a deal where you will be in a lot of places you weren't you take a royalty scream. tell me what the upside is before you did this.

so what did you get? how did you make this decision and go for it? >> first of all, i'm here with mark schneider, the ceo of nestle and we are working together to create a global coffee industry. when starbucks builds our stores in a particular market, we establish the brand. and in north america, we have proven that when we extend to cpg food services it becomes a brant amplifier. they can experience starbucks in the store and go to different presence to try different coffees. and that, in turn, reinforces their engagement with starbucks. this particular partnership is all about taking what we have learned and built in north america and taking it globally it is also about expanding the

platform. >> you have been buying back stocks 100 million in shares over the last three years, but the stock is stagnant. if you take the money, what will the buy-back do because so far the people want growth not buy-backs. is there a way to energize growth with this additional money. >> well, we have had great success over the five years or so can k-cups on the keurig platform this opportunity brings starbucks coffee to the nespresso platforms globally there are more households in the install base of dull chi keurig. we are over 3200 stores in china.

we just opened the roastery. this brings food businesses to china. brand afternoon amplifies -- ans about growth and returning cash and value for shareholders. >> let me turn to you, mr. schnerman. does this deal make sense for your company what was behind this decision? >> thanks. let me say i'm excited about the partnership. it builds on a year of hard work between the two of us and a hard year between the two companies when we found out there was a

tremendous amount of coffee in the market we are focusing on the perfect coffee and responsible resourcing the two companies are very much aligned on the issues. we are present in 190 countries. we have feet on the ground this is where the story that kevin eluded to can play out china's our second largest market after the u.s so i think those are the growth opportunities that we are excited about. >> i would like to ask, kevin, whether this is one of those situations, you are agnostic versus keurig. but, at the same time, is this not kind of a dicy time for keurig given the fact they are merging with dr. pepper. is it good to be on both

platforms in case keurig has a misstep? >> first of all, jim, we had a very healthy and positive relationship with keurig over the years. and we continue to have the same share sharing. we need to make sure starbucks is leading for nespresso and the keurig we see this as a positive growth and will continue to maintain the relationship with cukeurig grow the number of k-cups on the platform. >> it's coming to a time when people question the long-term value of consumer products, packaged goods warn re buffett was asked about that on the air this morning and

said, it is not 15 to 20 years ago because people are more willing to try other brands. they are getting use to change in their life overall. that's separate from the ongoing battles between producers and retailers. what is your take? >> well, it is all about getting them the change in innovation. so if we master that, you know, the sky is the limit so i don't think the growth opportunity is over, far from it plus, there's a significant emerging opportunity that is not fully exploited. so i think the future is bright if we do it right. >> kevin, you did a gedeal with craft and it unwinded. what's the advantage of nestle versus kraft

>> i would characterize these as two different -- top opportunity to partner with nestle who brings the opportunity with the coffee and the regional presence this is a global relationship. it's a global relationship with a company all about coffee and this aligns with the stroo time timic -- this brings new platforms into the new geographies. with the focus of china and single-serve coffee, this is a wonderful opportunity. >> mark, knowi know that we're e to talk coffee, but you have a

substantial amount in pet food that's a tough category. but a lot of people feel that pet food is bottom what is your take on it? >> look, we are excited about pet food, too. this is one of the other growth categories we are very much involved in and one of the leaders in that market so a lot of interesting things underway there and we are committed to the area >> dr. schneider whether or not there's an opportunity to sell the l'oreal stake. can you update us on the thinking given the pressure brought to bear by dan lowe. should it be monotized >> a lot of investor interest on

this subject, but i have nothing to add to what we said prior and the latest disclosure is this >> we are talking about the latest issue in philadelphia and how to train people to deal more sensitively. where do you think you are in that process >> well, jim, we have committed to close all of our 8,000 company-operated stores on the afternoon of may 29. and we are currently working with our external advisers and external organizations to help shape that program we think of it as a day of discovery. this is a step in that journey, but we are right in the middle of crafting that and putting that together. and we're looking forward to the opportunity to roll baa out, and experience that. we think it will make us a better company

>> kevin the proceeds on this deal with nestle, does this impact the closure or ranges on that? >> we continue to build new stores and continue the growth agenda with the starbucks retail stores in many ways, this allows us to focus more time and management attention on the core value drivers, which is our those that we'll distribute to nestle, but this will increase the $15 billion we have committed to increase to $20 billion over the next three years, cash returned to shareholders in the form of dividends and buy-backs. this is allowing us to serve more time on this number

this is indicative of how you think on the overall opportunity here >> yeah, look. i think it is all about a starting point for a global and perpetual partnership. in addition to the upfront payment that will be sourcing of coffee, i understand it is pretty hard from the other side with the beginning of a opportunity. >> it was great to talk to you >> it's a bit of a chapter turner in onsome ways. >> anything to make it stronger

in china is important. i think the question about what to do with some cash, so far buying back the stock hasn't created the level of value i'm always hoping if that is the case, they go back to having a -- they go to having a big give den dividend mcdonald's atacted me because they offered a good give dent. the company is committed to buying back the last few shares that didn't matter to the stock price. we like a little dividend. obviously, we like a little acceleration in growth in the united states. whether that does that, it's not clear. but i think they want to be on both platforms s in lnestle really needs to do the deal they make the best chocolate, not coffee >> i like chocolate milk that's all i have to say chocolate milk >> you still don't like the "avengers," do you >> no.

i have not seen it. >> i have seen all the ones beforehand. >> i'm just tired of the superhero ones >> he's added enough value with the athena news. >> athena was a goddess. >> elliot put out a letter to make it official that they are offering a price of $160 i reported between $155 and $160 it is all fully cash and financed they are now faced with a stark reality that athena health is a public investment despite all the promise that has not worked for many years is not working today and will not work in the future so we want to own it it's not working >> they don't mention the chairman for me to send him a letter >> they will work on it, john. when we come back later, we'll meet with satya nadella. exxon and chevron are leading, apple is not far behind.

don't go away.

at&t gives you more for your thing.

your getting the best but paying way less thing. now get 50% off a smartphone, like the samasung galaxy s9. more for your thing. that's our thing. visit att dot com or a c-anything-o. but i've got an idea sir. get domo. it'll connect us to everything that's going on in the company. get it for jean who's always cold. for the sales team, it and the warehouse crew. give us the data we need. in one place, anywhere we need it. help us do our jobs better. with domo we can run this place together. well that's that's your job i guess. ♪

take a look at the dow 300-point rally on friday. 172 points today we're exactly 900 points above thursday's raiintraday low we'll get stop trade with jim in a moment

anyone can get you ready, holiday inn express gets you the readiest. because ready gives a pep talk. showtime! but the readiest gives a pep rally. i cleared my inbox! holiday inn express, be the readiest. holiday inn express, (slow jazz music) ♪ fly me to the moon ♪ and let me play (bell ring)

mr. elliot, what's your wiwifi?ssword? wifi's ordinary. basic. do i look basic? nope! which is why i have xfinity xfi. it's super fast and you can control every device in the house. [ child offscreen ] hey! let's basement. and thanks to these xfi pods, the signal reaches down here, too. so sophie, i have an xfi password, and it's "daditude". simple. easy. awesome. xfinity. the future of awesome.

let's get to jim and stop trading. >> sometimes you want a pro to come in and change things. when they came in on cisco, i think the stock doing well a terrific quarter a good sign for the restaurant business it's a very inexpensive stock and it's breaking out and one people ought to look at. even at 63 it does not reflect the full promise of what it is getting to be better and better run company. >> jim, we mentioned the run we've had thursday, friday and today. is the market going to change having been flat since the start of earnings season >> we went through the bulk of earnings season and we did not get hurt and the next group is retail the price cutting a stock. the earnings have set a good tone and the tone going forward is going to be much better than what we've seen because a lot of

the big industrials were caught up in trade. we also haven't had anything new on trade nafta very important we have to find out what's going to happen with steel, aluminum. >> real vacuum of information. >> i wanted to ask you about micro semi >> the approval there conceivably a positive i don't know yes, i suppose >> i think so, too so there is an era of good feelings breaking out. except the president has been focused on other things. when he's focused on other things, the market goes higher how much different is that from last year when he was focused on the market and it goes higher. >> what's on tonight >> we've got bank of america doing some technology stuff. very exciting. whiting petroleum with a major comeback and really findings these stocks are hot

it's been hard to find an executive to come on they ought to come on. this is halcion days >> -- >> he's an embarrassment you're not seeing that movie i don't understand you anymore >> we'll see you tonight, "mad money" 6:00 p.m. warren buffett says we're ndutle a stock market bubb fi o what else he told becky with the stock market up 206

attention homeowners age sixty-two and older. one reverse mortgage has a great way for you to live a better retirement... it's called a reverse mortgage. call rfree information kityour with no obligation. it answers questions like... how a reverse mortgage works, how much you qualify for, the ways to receive your money and more. plus, when you call now, you'll get this magnifier with led light absolutely free! when you call the experts at one reverse mortgage today you'll learn the benefits of a government-insured reverse mortgage. it will eliminate your monthly mortgage payments and give you tax-free money from the equity in your home... and here's the best part... you still own yohome. call now! take control of your retirement today!

♪ good monday morning. welcome back to "squawk on the street." i'm carl quintanilla with sarah eisner and david faber buffett a big story, watching for any breakthroughs on china trade our road map begins with apple hitting a fresh new high as the oracle of omaha likes the stock so much he'd like to own all of it >> why buffet is saying pick stocks over bonds.

markets in rally mode. >> nefstle is inking a deal with starbucks to sell its packaged products what they told us about their new coffee aalliance warren buffett covering everything from aple to wells fargo, berkshire's warren buffett sitting down for a three-hour special with our own becky quick. morning, becky what were some of the highlights to you >> good morning. one of the first things that people always want to hear from warren buffett is what he thinks about stocks we asked him about that. he's been clear in recent months he thinks stocks are fairly expensive if you are looking to buy an entire company. like he tends to do from time to time that's why he still has about $100 billion or so in cash sitting around if you are an individual investor, somebody who does not do this for a living, he thinks that stocks are much better place to be putting your money than u.s. treasury bond.

>> now you have a situation, the federal reserve says they want inflation at 2%. so they say they're going to try and devalue that bond by 2% a year in the dollar terms and it's almost always equities have been a better buy and certainly if you're going to put away money over time when you're younger, you can buy stocks over a considerable period of time. they're not going to get to lows but you'll not just buy at the highs. if you have a cross-section, well, like i say, it will turn $10,000 into $51,000 and you never had to look at a financial page again >> one of the issues that's been weighing on investors at least in recent months has been the potential for a trade war with china or other big trading partners that's something we've been following very closely you know that our trade negotiation team just came back from china this past weekend but when it comes down to it,

don't put warren buffett in the camp of those concerned about a trade war with china >> i don't think we will have trade wars because of significance we'll have trade movements but in terms of the old-fashioned thought of a trade war where you just keep piling it on, i don't think that happens it's counter to the interests of us counter to the interests of china and of every country in the world. the world thrives on trade we'd not have the economy nor would china nor the rest of the world have the economic wellbeing they have without a lot of trade >> buffett was with us for all three hours. we were joined in the last hour by charlie munger and bill gates. charlie munger, vice chairman at berkshire hathaway the board is meeting after the annual meeting there were all sorts of different opinions from those three. they don't see eye to eye on every issue but one issue they

united on this morning and that was bitcoin. none of them are all that impressed with bitcoin as a strong potential investment. you'll talk more about that later. >> becky, some great stuff on packaged goods and competitive moats and even weaved elon musk into some of that. >> they had a lot to say about all of those packaged goods is a big topic for them because berkshire hathaway has major stakes in coca-cola and kraft heinz. those shares have been under pressure buffett said while you've seen some of that dynamic go back and forth, but the relationship between the retailers and packaged good companies, the pendulum swings about who has more power the retailers have had more sway with that relationship but still very good companies, very strong companies and feels committed about the stakes he has in each of them. >> becky, what about the cash? everybody is wondering about that $108.6 billion

we learned berkshire has in cash and how buffett is thinking about putting it to work how much urgency in terms of putting it to work what did he say about that >> you know, $108 billion is down from where they were at the end of the year. $116 billion he was doing back of the hand calculations 12 to $13 billion just on apple shares in the first quarter. i think by his own calculation, they're closer to $100 billion in cash. not sure if that was just what they had at the end of the first quarter. he looks at it and says one of the great things with berkshire hathaway is they have the ability and potential to do nothing. they can wait for those big, fat pinches to go across the line. he'd much rather have that in something he's making more money because most of that is in cash or short-term u.s. treasury bonds and they're not make anything money on that one interesting thing was this idea that they -- it would have been smarter to have the excess money. he always likes $20 billion in

cash on hand for an emergency. but you're still talking about $80 billion that could have been making more money than being in short-term treasuries. he said over time, it might have made more sense if he invested it in an s&p index fund. and raised the possibility that maybe they could do something like that in the future. they wouldn't be able to buy it from most index funds. you can take out $50 billion at any point when you want that big -- that big purchase for acquisitions that he might take from time to time if he finds the right price. but it would have been a much better investment if they'd been in that than any short-term issuances. it's kind of a pain but i think he's thinking of things he may not have been thinking about before in terms of what to do with that excess cash. >> once again, becky, you helped to bring a lot of information for the market to process. our thanks to you. long morning already, becky quick in omaha and there over

the weekend. buffett talked about increasing his stake in apple taking his shares to 5% of the total company. take a listen. >> we're not buying a stock when we buy apple, in our minds we're buying 5% of a business. we buy 100% of some businesses and when they're publicly held we buy 5%. we bring the same thinking to it and we like -- we like very much the economics of their activities and we like very much the management and the way they think and the way they act >> for more this morning we're joined by david rolf and the managing partner gene munster. >> morning >> david, once again, we're left with the same framework. and that is buffett praising the value of equities over bonds and yet not putting a ton of this cash to work what does that say >> it's a conundrum. he's got a unique problem in that for him to move the needle,

he needs big positions he needs big liquidity i did find charlie munger's comments earlier this morning when she was talking -- when he was talk with becky that he wanted buffett to buy even more apple. i wish he would have i'm talk in my book because we have a big stake in apple. but apple is only -- only 5% he only owns 5% of apple and if he could have gotten that stake up to maybe 6%, 7%, maybe 8% to get ahead of this tidal wave of share buybacks that apple is going to be beginning, you know, any time soon, i think that would have been an even more impressive use of this -- all this cash that he has. i wish he would have swung a fatter bat on apple. he could have done a lot more. >> the direct quote was he believes berkshire may have been

a little too restrained in the purchase of apple stocks she asked him why. apple is reasonably priced and strong it's not too late for buffet to own more apple and if so, what catalyst can that be for apple going forward? we've seen such a big bump today and friday >> well, again, i've observed the apple story for a long time. and i think we're entering a period where this is as big of an event as the iphone was for totally different reasons. two things are changing about the apple story. and we could be in the front of a significant move higher in this stock first thing is we're entering a phase of more visibility around the iphone 2015, iphone up 37%. 2016 down 8% over the last five quarters, it's ranged between down two to up five. that is important for investors not to stress quarter to quarter. there's always going to be some level of anxiety but not to stress as they had in the past and second, everything that

buffett is getting back to the cash position. and this is why another factor that's just going to think of the screws slowly turning this story higher is if you look at the 59 they can generate in cash every year and apply that to a buyback. the first year that adds 6%. the second year 5% because as the stock goes up. but the big picture here is we're essentially one week into a whole new type of thinking around the apple story >> well, david, obviously the market is not apple. apple, another all-time high today. he did talk about the economy, though, doing pretty good. mentioned rail cargo they are seeing signs of inflation in the building materials businesses how would you characterize his view of macrodata as we're getting it >> we've been consistent the economy continues to hum along. it's certainly in the general macro not on fire but i think his related comments on interest

rates and how they may affect equities we're in a little bit of a different position than for equity investors given the strength in the economy. the fed has begun to increase interest rates what's interesting is for the first time in this bull market, short-term rates are now above the dividend yield on the s&p 500. so for asset allocators, that's going to start to get their attention. and if the economy continues to hum along and rates continue to go higher, at the margin, maybe fixed income starts to become a little more competitive with the stock market a discussion that we really haven't had in the last nine years. >> but he did not give us any hint that his views even tilting that way at least not yet >> right he always says that caveat stocks are better than bonds as long as interest rates continue to stay relatively tame and low. again, it's a big caveat but we're not there yet but we're climbing there >> yeah. two particular stocks that

buffett talked about, ones he's not in he mentioned this before in admiration of jeff bezos and amazon and google's gross story saying he regrets not being in those type of growth stocks. is it too late >> i think both of those are well positioned. if you put the three of them, apple, google and amazon together, based on the shift that's now just starting with apple, that's the most favorable of the three i think google still has this challenge around some data privacy that could be an issue for the stocks this year and amazon, big believer in what they're doing but i just get nervous when i see things move as quickly as they have. if you take a perspective of five-plus years, it's not too late three of those companies are in what's ahead of a very big curve in tech around ai and robotics and e-commerce and all three of them will participate in that. >> david, when you put it all together, you said you wish they'd swung a fatter bat on

apple. he already acknowledges he missed amazon. he missed alphabet he's liquidated ibm. can we draw any conclusions about his current strength in valuing technology at large? >> i don't think he's moved the needle that much he's the first to admit he's not a tech guy but i think his big investment in apple is of a different matter when he talks about the ecosystem and it's a consumer product. i'd go further buffett talks about the utility of an iphone ides take it one step further. i think the iphone franchise is like a utility stock we all take it everywhere we go. we don't take our laptop everywhere we go so i think buffett's view on tech, particularly on apple, he can think about apple in the context of what he's thought about consumers, products and

brands over all the years. i don't think he's become a hardware or cloud expert >> yeah, like a coca-cola almost still, gene, it is in the technology index of the s&p 500 which is outperforming again today along with energy. apple coming off its best week since 2011 can it carry the tech sector to a leadership position again in this overall market? >> so if this theory about -- there's a shift in how people are thinking about apple away from anxiety on the iphone to stability on the iphone and a better appreciation of the buyback. if that holds true, the multiple is going to go up. and dare we give it a multiple similar to google? google is a different growth rate that's at 22 just to put into perspective some of the upside this is not a price target if you put in 22 multiple on next year's number for apple, that's 65% up side to where the stock is hard to believe, obviously, but

at the end of the day, a slightly lower multiple. let's say it's an 18 multiple. that gives you 35% up side if you can get just a fractional increase in the multiple, if this does, in fact, a new paradigm in how people are thinking about apple, you can see measurable moves in the stock. >> we see a pretty good move already. guys, a lot to chew on out of omaha. thank you. david and gene, we'll see you soon >> thank you and there's more when we come back. more from the oracle of omaha. why berkshire hathaway's warren buffett is telling investors to put their money in stocks over bonds. plus, jon fortt's exclusive and rare interview with microsoft's ceo satya nadella. boeing, and caterpillar contributing the most to the 00oi rlyarly 2-pntal we'll be right back.

anyone can get you ready, holiday inn express gets you the readiest. because ready gives a pep talk. showtime! but the readiest gives a pep rally. i cleared my inbox! holiday inn express, be the readiest.

holiday inn express, mr. elliot, what's your wiwifi?ssword? wifi's ordinary. basic. do i look basic?

nope! which is why i have xfinity xfi. it's super fast and you can control every device in the house. [ child offscreen ] hey! let's basement. and thanks to these xfi pods, the signal reaches down here, too. so sophie, i have an xfi password, and it's "daditude". simple. easy. awesome. xfinity. the future of awesome. if i had a choice between buying the s&p index or buying the ten-year u.s. treasury or 30 u.s. treasury, it wouldn't take me a nanosecond to go into stocks it may be because bonds are going to fall a lot. you don't have to buy exactly the right stock or buy exactly the right time the one thing you have to do is buying the single wrong stock or at the single wrong time >> that, of course, was warren

buffett speaking with becky quick early or "squawk box" weighing in on everything from tech, trade, valuations and bitcoin. joining us is jpmorgan private bank global investment strategist and mike santoli. we've heard buffet talk about stocks versus bonds and why stocks are the better bet for a while now. it's interesting that we've seen this big move in bonds with the ten-year yield hovering around the 3% >> they haven't reached whatever threshold buffett has in mind. i think the virtue of hearing from him this way, a very consistent message, is the virtues of keeping it simple and the hazards of overthinking it that said, i don't think many are there with this binary decision of s&p 500 or long-term treasuries they can both be part of the same mix buffet has $100 billion in cash.

it's a fifth of the market value of his company he doesn't mind having secure reserves >> he liked to put that money to work >> waiting for the right price and opportunity. >> what sort of allocation should investors have between stocks and bonds >> it's dependent on the investor a lot are thinking about the tradeoff between stocks and bonds. if i look at the dividend yield or buyback yield, those aggregate yields are still well above the 3% yield we have in the united states or 0.5% we have in germany. so absolutely the trade off is still towards equities i would also say pension funds, decision making processes, say little different as yields approach 3%, they are looking to reallocate some from the growth bucket into the fixed income bucket and that may be why we didn't see 3% yield sustained at these current levels >> i think the reason we're

talking about it and i heard guests earlier say, well, you know, short-term treasuries are now above the s&p 500 dividend yield. >> as they were for the entirety of the '90s. it's not about -- this tradeoff does not have to be this verse u the ortther on a basis point level. there's doubts about the persistence of this economic and market cycle if you didn't have those doubts out there the cycle was close to ending and the fed was going to make a mistake, you wouldn't be thinking about these two asset classes. >> i think we should add two more assets to this conversation oil prices are now past 70 for wti and the dollar at the high of the year. does that, anastasia, make stocks less attractive >> it makes u.s. stocks favorly less attractive and favors european stocks. earlier in the year, japanese and european stocks really suffered around the trade concerns and the fact their

currencies have appreciated as much as they have. now there's going to be in reverse a little bit and the euro having pulled back, those forecasts for future projections are not going to dampen the earnings as much as they have in the past for european countries. we favor european stocks or u.s. ones at the moment >> earnings running at 20% year on year. yet the s&p is moving in basis points week on week for a couple of weeks what busts it out of that mode >> i think what busts it out is how long it's lasted and how much anxiety is built up over that very dynamic. the fact that we've kind of gone sideways during this great earnings season. it's not that unusual to go sideways and churn during earnings you have winning groups and losing groups. what's unusual is the magnitude of the earnings growth that we're just absorbing so i do think -- today is the 60th day since the low in february 9 of the s&p 500. it's kind of a long time to be stuck under water if this is

just a routine correction. and that's why the last few days have been somewhat encouraging because the market refused to break to new lows. didn't take any excuses to sell off more friday was clarifying. you have a goldilocks job number and tech reasserting itself. >> the journal uses the goldilocks word today. >> it's key to see some support for tech here. broadly speaking this market does not necessarily want to go down we're in this range, on the bottom, supported by the 200-day moving average but now that we're a little off the bottom, i see catalysts to move higher from here. we're winding down this great earnings season and what starts next the buybacks the window is reopening. that could be the way to support the market >> you say catalysts is that the key catalyst or others beyond buybacks >> i think that's one of them. the other is we need to see progress made on the trade front, and that's likely not going to happen overnight but could happen over the next

couple of months so that's really the other key factor what we're looking for. >> it seems this do no harm, nothing being accomplished attitude is okay, too? >> it does seem like that. guys, we'll leave it there anastasia and mike santoli we want to get to some news we first brought you at 9:15 elliott management was going to make a bid to acquire athenahealth a company it owns roughly 8.9% since that time elliott has made it official releasing a press release. it's made a proposal to acquire athenahealth elliott says it's received financing indications from leading banks and leveraged finance for highly constructive and eager to provide financing for this take private. they also go on to say they've raised capital or equity capital from other partners. it would be a large deal roughly $7 billion all told.

but elliott is no stranger to making bids for companies it's taken significant stakes in although we know it's an activist fund that fights proxy fights and this letter reads like a proxy fight letter as opposed to one in which you're seeking to acquire a company. just share a couple of things from it. they say, for example, unfortunately we're now faced with the stark reality that athat athena health is a public company investment it will not work in the future given athenahealth's potential, this reality is deeply frustrating but as a public company it's not made the changes necessary to enable it to grow as it should and create the kind of value shareholders deserve. that's typically the language you see in a letter where then what would follow is we want to nominate this many people for the board. that's not the case here it was roughly a year ago that elliott took a 9.2% stake through a 13d filing in athena

and they've had conversations with the company but none that have moved them to the point they felt athena was doing the things they want them to do to take advantage of the market they're serving as a cloud-based provider of all sorts of solutions for health care providers, medical practitioners or hospitals across the board. for its part, just moments ago we got a statement from athenahealth saying it will review this unsolicited bid to acquire the company with its financial and legal advisers and determine the course of action it believes in the best interest of the company for its part, elliott is hoping it can move fairly quickly to what it would call a definitive purchase agreement with customary company and financial diligence. they say they think they can do their due diligence in about three weeks and move on from there. as we'll see how this ends up. athena stock price moved up dramatically on our report and confirmation from elliott of that $160 a share bid you can

see there adding almost a quarter of its -- >> we need to hear from the king of sound bites, jon than bush. he comes on our program a lot. >> apparently he's supposed to be here. at a conference. we'll see whether we can catch up with him and hear something from mr. bush. it's unclear what the plan would be from elliott were they to succeed in taking this company private but it seems that mr. bush might not be part of that plan >> be interesting to hear from jonathan if and when we do >> always. when we come back, nestle inking that $7 billion deal with starbucks. plus what the ceo told us about their new alliance earlier "squawk on the street" will be right back

welcome back to "squawk on the street." oil topping $70 a barrel hitting its highest level since 2014 dom chu is back at hq as some of these energy stocks are flying

>> traders that don't have a lot of experience in the futures market are using exchange traded products namely united states oil fund. uso the ticker this fund tracks the daily price movements of american crude using futures. they use other derivatives another big tailwind for the fund is the current structure of the oil futures market where near-term oil prices are higher than oil prices in the coming months this is a series some call back wardation. they can be reinvested in cheaper futures for later expiration when the opposite happens, futures contracts with oil prices with expiration further out are priced higher. you lose money every time you need to roll that to the next expensive product. so they all impact each other but traders are not just paying attention to the iran nuclear deal, u.s. shale production and everything else. that term structure in the futures market is very important when it comes to this u.s. oil

fund uso back to you. >> that's a big story today, dom. thanks, dominic chu chu. let's get to sue herera with a news update. >> good morning, everyone. here's what's happening at this hour president trump is defending gina haspel, his nominee to head the cia, dismissing debate over her involvement in a harsh interrogation program. the democrats, he says, want her out because she's too tough on terror haspel offered to withdraw her nomination over that issue iranian president rouhani said iran would be willing to stick with the nuclear deal, even if the u.s. pulls out this is providing the european union offered guarantees that iran would keep benefiting from that deal. vladimir putin has takenth oath of office for his fourth term as russia's president he won the six-year term in the march elections with 77% of the vote he has effectively been the leader of russia for all of the 21st century and air france's shares plummeting after its ceo quit

and the french government warned the country's flagship carrier might collapse a new strike today over wage demands propping the cancellation of about 15% of its flights worldwide. you're up to date. that's the news update carl, back dounwntown to you. >> sue herera, thanks. nestle striking the deal with starbucks to sell its packaged products globally starbucks says it will use the proceeds to speed up share buybacks we talked to the ceos of both nestle and starbucks this morning. listen to that >> this particular opportunity now brings starbucks coffee to the nespresso and dolce gusto. there are more households in the ne nespresso and dolce gusto than all of keurig. >> in the u.s. coffee market, we were kind of late.

this allows us to catch up in retail and food service. >> to jim's point, a deal, obviously, helps nestle as they do need to catch up. for starbucks, more impact around the world than domestic stores and domestic sales? >> to me, this is a big response to what j.a.b. has been doing in europe which is accumulating coffee brands, stores and has become a multichannel threat for the overall coffee business and the consolidation that they have engineered this big, what, private equity family held company. >> yes >> and it would make something like a nestle starbucks which are previous coffee rivals you'd never think to have seen this and the competitive lappndscapes very different >> we do forget how big j.a.b. has become they focused everybody on it when they acquired keurig. >> and panera. >> yes, which is not even there, but -- >> this goes back to, remember, peltz's big thesis about

consumer brands. people are not into brands of scale as much as they used to be they're more willing to try a smaller, maybe healthier brand if it's a food maybe trendier if it's a coffee. >> the cpg industry, consumer packaged goods, is struggling. seen medium deals. mini deals the big snackmaker over the weekend decided it's buying tate's cookies for $500,000. the little hamptons company that has grown to be profitable >> they did all right. yeah, it is interesting. nestle itself, as you know, has been under pressure to get organic growth move again. its targets far outstripping its ability to deliver on them >> tough categories, food. i mean, they've -- >> pet food, too, has not been easy >> they've done these small bolt-on acquisitions it's the biggest food company in the world. they've got the capital. the question is, will they go

that route or will they just, like other food companies, keep changing their ingredients and try to get new innovation back that's the dilemma facing all of these companies right now. when we come back, worthless artificial gold. berkshire's charlie munger and warren buffett bashing bitcoin they're avoiding the crypto currency why they're avoiding it, coming up, and more key quotes on that one. also in 30 minutes, jon fortt's rare and exclusive interview with microsoft's ceo satya nadella. you won't want to miss that on "squawk alley. "squawk on the street" will be back with the dow up 180 points. trust and loyalty.

you and lantus. you go together, so stay together. ♪ stay together with a $0 copay, you've got zero reasons to leave, and every reason to stay. lantus is used to control high blood sugar in people with diabetes. do not use lantus to treat diabetic ketoacidosis,

during episodes of low blood sugar, or if you're allergic to insulin. get medical help right away if you have a serious allergic reaction such as body rash or trouble breathing. don't reuse needles or share insulin pens. the most common side effect is low blood sugar which can be life-threatening. it may cause shaking, sweating, fast heartbeat, and blurred vision. check your blood sugar levels daily. injection site reactions may occur. don't change your dose of insulin without talking to your doctor. tell your doctor about all your medicines and medical conditions. check insulin label each time you inject. taking tzds with insulins like lantus may cause heart failure that can lead to death. stay together with the lantus $0 copay. ♪ let's stay together talk to your doctor or visit saveonlantus.com. welcome back to "squawk on the street." i'm sara eisen with carl quintanilla and david faber. one hour into trading and a nice rally on our hands the dow up about 150 points.

s&p up 0.4%. it's led by energy and technology apple is a big winner at an all-time high. therefore, the nasdaq is up almost 0.75% yields and in dollar rising as well warren buffett taking another swipe at bitcoin this morning. why he's shunning the cryptocurrency >> and when you buy nonproductive assets, all you're counting on is whether the next person is going to pay you more because there are even more excited about another next person coming along. but the asset itself is creating nothing. you can have anything you want to imagine if you just look at something and say that's magic you can do it with shark's teeth or sea shells. anything they did it with tulips in the 17th century in amsterdam and they'll do it again. >> berkshire's vice chairman echoed buffett's criticism of

investing in crypto. listen to this >> bitcoin is worthless artificial gold which if it succeeded would facilitate a lot of illicit activity. now that is not something i think the world needs. and the fact that it's clever computer science doesn't mean it should be widely used and that respectable people should encourage others to speculate in it bitcoin reminds me of oscar wild's definition of fox hunting. >> munger also said it's like somebody else is trading turds and you're being left out. buffett also called bitcoin rat poison squared these guys really do not like bitcoin. >> what gives you that idea? >> it's just funny because people are so emotional on one side or the other because you have, you know, billionaires that are more young and sort of in silicon valley talking the

other way. i think draper of venture capitalist who say it's going to $250,000 and it's going to be bigger than the internet people are prone to exaggeration when it comes to this currency, whatever you want to call it >> draper probably uses an iphone, unlike these octagenarians. >> and two of the smartest guys you'll ever hear about with a track record to back it up >> that remains to be seen the bitcoin bull/bear debate heats up with some of the biggest names. the buffett archive is a new website offering video of 25 years of searchable berkshire meetings, as well as curated content. dom chu is back to walk us through the site >> you mentioned all of those 25 annual reports it all starts here at buffett.cnbc.com this particular launch page will get you there four or five different places you can go. think of them like apps within this website

and like you said, those 25 annual meetings going back to '94. 130 hours worth of video and 2600 pages worth of transcripts to go along with it. one of the most fascinating functions about this particular website is the annual meetings if you go into the annual meetings, take a look and see. we're going to go into 2018 which, by the way, is already up on the website, even just having happened this past weekend every single moment of these annual meetings has been categorized and at least digitized in terms of video. also, when you run these particular videos, you'll have the transcripts that go right along with them and you can minimize the video and follow along with the read. if you see something down the line, guys, where you want to click in that particular paragraph, there's a function where you can sync that particular thing to the video that's being shown so in addition, sara, keyword search bitcoin or anything else you want in this particular website. it will take you to all the

video clips that they've said about bitcoin over the years in this case, a very fun function to play around with that's buffett.cnbc.com. >> a treasure rove dom, thank you huge interview straight ahead. jon fortt's exclusive with the ceo of microsoft, satya nadella. "squawk alley" at the top of the hour "squawk on the street" will be back with the dow up about 131 points

apple getting the buffett boost inching closer to the trillion-dollar milestone. find out how soon some experts see it getting there tradingnation.cnbc.com "squawk on the street" will be right back

dow up about 140 to the cme group in chicago. rick santelli with the santelli exchange >> good morning, sara.

i'd like to welcome our guest, david walker he's running currently for the connecticut governorship, former comptroller general of the u.s. and former cpa david, thanks for taking the time >> good to be back with you, rick >> is it worked out, we had a great timing event today, page one, "wall street journal" article state budgets get lift from economy stax bill. specifically mentioned was connecticut. now connecticut and illinois don't have great landscapes financially, and this boost, they say, over $1 billion boost, 1.3, is coming in. and my question to you is, a, are you familiar with that activity under the surface and is it mostly one time issues as we implemented late year tax reform, or is this more? is the connecticut economy growing? is the u.s. economy growing from policy changes >> the bottom line as it relates

to conkornnecticut, it's a one- blip there were changes that caused hedge funds and other investors to have to claim income in 2017 and so a one-time plus but the fact of the matter is that while tax reform will result in additional economic growth, improving our competitive posture in the united states and internationally, connecticut actually shrunk last year. the economy shrunk spending is out of control it's overpromised on pension, retiree health care benefits it's taxing too much, regulating too much we'll need some changes and so is illinois. >> you know, i couldn't agree more we've had the good fortune to have a lot of air time with warren buffett today i'd like to play a clip, david you listen to this >> happy to. >> eventually they have claims on all our wealth. so we do what our policy is

worthy overall trade deficit does not get out of hand in relation to gdp, and i've been arguing that for a long, long time. >> you know, david, what i want you to comment on there is, does this notion that mr. buffett has been bugged by the trade deficit, many who don't see president trump's administration doing a good thing here say it's a horrible metric. i'm asking you, as you try to turn around the connecticut economy, how important is it to get global trade right and what's the effect on your economy in connecticut and all the other states involved, of course >> rick, we need free trade but also fair trade. and it's important that we try to strive for both that's what president trump is trying to do candidly, i have a lot more concern about the fact that the federal government's finances have spun out of control again and that many states, in particular, new jersey, kentucky, connecticut and illinois are basket cases with regard to their finances

they can't declare bankruptcy. they can't print money, and, you know, they need to restructure sooner rather than later ultimately, the federal government is going to have to restructure its finances, and when it does, bad news flows downhill it's cal downhill it's called gravity. >> i got you in the final question, sir, as your group is campaigning to turn connecticut around, what would you say to all the petitioneers who have money that is being managed by fimpl firms that have bogeys at 7%, 7.5%, unrealistic? will you try to put more balance in those issues? >> the answer is yes rick, i look at the numbers being reported and adjust it for a reasonable rate of return so people have a better understanding of what the situation is we have to restructure our petition and retirement in a more sustainable way people have been promised way

more than has been funded, way more than we can afford and way more than we can sustain it has to be a top priority, including a number of states, including yours. >> to that end, times are pretty good now many believe this is the last hoorah for this business expansion day. we are having better years state by state, as a country as a whole as well. is there some type of rainy day fund scenario? in other words, what are you going to do to try to protect from a downturn as you're barely starting to make progress? >> we clearly need to build up our rainy day fund in the case of connecticut, it's very low the one-time windfall coming from the tax reform should be going into the rainy day fund. we still haven't figured out how we're going to balance the budget for this year my gut feeling is that they'll take it out of the rainy day fund we have to build that up

the federal and state level, we face growing deficit, in connecticut and illinois it's time to face the truth, make tough choices we have to get spending under control, have more competitive tax systems and deregulation it's essential in order to improve our competitive posture and create a better future. >> dave, thank you very much good luck on your run to be connecticut's governor and i'm going to go back to david faber. >> thanks, rick. all right. and i'll take it thank you, rick. let's send it over to jon fortt, with a special look of what's coming up on "squawk alley." >> microsoft ceo satya nadella microsoft's build developer conference, cloud, artificial inteigce, tallenda privacy, china. don't miss it in a couple of minutes on "squawk alley." it was my very first car accident.

i called usaa and the first thing they asked was 'are you ok?' they always thank you for your service, which is nice because as a spouse you serve too. we're the hayles and we're usaa members for life. when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time.

fidelity. open an account today. fidelity. sure. mom,what's up son?alk? i can't be your it guy anymore. what? you guys have xfinity. you can do this. what's a good wifi password, mom? you still have to visit us. i will. no. make that the password: "you_stillóhave_toóvisit_us." that's a good one. [ chuckles ] download the xfinity my account app and set a password you can easily remember. one more way comcast is working to fit into your life,

not the other way around. welcome back to "squawk on the street." i'm dominic chu. with oil prices doing a lot of heavy lifting, at least on a percentage basis gains are being led on chip side of things by nvidia and amd and

broadcom if you take a look at shares of apple, another all-time high again after posting its best week since 2011. so, as we watch apple shares, technology obviously a very big part of the market and apple a very big component within technology something we're watching closely as well as those oil prices, guys one of those etfs we'll keep a close eye on, spyder technology. we send it back down to the new york stock exchange. i'm sure you're watching that energy trading closely as well. >> dom, thank you so much for that. we have a big show ahead jon fortt's exclusive and rare interview with ceo of microsoft, satya nadella coming up. dow off the session his, ughp 167. "squawk alley" starts in a couple of minutes. in these turbulent times, do you focus on today's headwinds?

or plan for tomorrow? at kpmg, we believe success requires both. with our broad range of services and industry expertise, kpmg can help you anticipate tomorrow and deliver today. kpmg.

but we should be seeing ymore range of motion., i'm fine. okay, well let's see you get up from the couch. i'm sorry, what? grandpa come. at cognizant, we're uniting doctors, insurers and patients on a collaborative care platform, making it easier to do what's best for everyone's health, every step of the way. you may need more physical therapy. ugh... am i covered for that? yep. look. grandpa catch! grandpa duck! woah! ha! there you go grandpa. keep doing that. get ready, because we're helping leading companies see it- and see it through-with digital.

good morning, it's 8:00 a.m. at amazon headquarters

it's 11:00 a.m. in washington, d.c. and "squawk alley" is live. ♪ welcome to the jungle we got fun and games we got everything you want we are the people you find whatever you may need ♪ >> good monday morning welcome to "squawk alley." i'm carl quintanilla along with morgan brennan and jon fortt roger mcnamey and our own becky quick in omaha are joining us this morning we'll get some of the headlines from the annual berkshire meeting and her conversation with warren buffett. first, jon fortt sits down with satya nadella after the company kicks off its build conference. >> i can't tell you everything yet. that developer conference is literally starting right now some news we will share with you as it happens. as you expect, we had a conversation about cloud, about