and amazon posting the slowest revenue growth since the dot-com bust a loss you say ev details straight ahead. new filings show elon musk sold $4 billion in tesla shares. we will tell you what he tweeted as the sale became public. it is called woodstock for capitalists. we take you live to the berkshire hathaway meeting where warren buffett is set to hold court. it is friday, april 29th, 2022 monday is may. "squawk box" begins right now.

good morning welcome to "squawk box" here on cnbc i'm andrew ross sorkin along with joe kernen. rebecca quick is reporting live from omaha, nebraska, with a huge lineup. good morning, becky. i'm looking forward to the lineup and seeing the weekend. >> yes, thank you, andrew. good to see you. looking forward to seeing you. good morning from omaha. we have a big line up today. including brooks running company jim weber. we will talk about the supply chain issues we have been hearing about. we have chairman and ceo mario gabelli. we have the ceo john rogers. it is all part of the big lead up to the main event which is the berkshire hathaway meeting it is available at cnbc.com/buffett coverage begins at 9:45 a.m. eastern time

from 10:15 a.m., warren buffett and charlie munger will answer questions from shareholders. we will have an afternoon session of questions and answers. it should wrap up at 5:00 p.m. you can only see it on cnbc.com/buffett we have been coming here for a lot of years this is a place where every year they had drawn more and more shareholders we had 40,000 the last time this was held in person three years ago. you check it out today and the stage and things look the same this is the convention center where so many of the berkshire companies set up for the shash h shareholders come through. you can get a dilly bar. we have geico where you can take your picture with the gekko. so many companies are here pres presenting things are different they are trying to take

precautions with covid you have to be vaccinated to get in the door. you have to show your vaccine card there will be probably fewer people coming because of covid or having to have a vaccine. not to mention the people who got used to watching this show on air and to see all these things brought on the live streaming show that we will do from cnbc. they have spread things out. the booths are further spread apart to cut down on the crowding we will see what happens they are anticipating huge crowds this time around, too this is the floor before all of this happens the quiet before the storm you will see lots of shareholders coming in here. they are coming to hear warren buffett and charlie munger to hear views on so many things happening. it has been a year since we've talked to warren buffett here on cnbc he has not really spoken publicly about a lot of things that happened. we know in the shareholder

letter, he talked about how he looked around and did not see any bargains in the market after that, we have heard about deals. money he has put down. objecci occidental he spent $11 billion to buy allegheny full out then also $4 billion on shares of hp. that is what we watched happening. you wonder what he is thinking about the market with the volatility taking place. the big drop we have seen in stock prices lately. that will be a lot of what is on shareholders' minds. questions of the federal reserve and inflation and the companies preparing and the supply chain all of the questions with so many other companies we're here. apple makes up a part of the berkshire hathaway portfolio $148 billion buffett and todd combs and ted

with picks from charlie. it is a really huge deal >> how far is the dairy queen booth? >> i can spit to there from here jealous? >> i would be there loitering. i like >> the peanut brittle is really good >> you never hear people mention the gender issues. that's not true. i would say that about andrew. i would say andrew, your lighting is beautiful. >> it is the lighting, joe >> it has nothing to do with that that is a great shot you have, becky. your hair. you stole my person that does -- >> i did >> i can tell. it's beautiful i saw mac. you stole mac. >> mac, come here. he's mad come here. look you stole pressa and mac

>> andrew's coming >> and andrew. you will steal andrew. more importantly a great shot you have. it's really going to be great. we're backed up on everything. information from buffett pandemic two years of not normal stuff. it's great we get back to normal on that. apple. >> you know what i didn't bring? >> no, what did you not bring? >> i i'll tell you quickly this is embarrassing i didn't bring my razor. they have this shot here and i'm hiding my legs i forgot it. i'll deal with it later today. >> andrew's in shock at first, i thought, you know what you said that. that's fine for you to say it. andrew, both of us, without comment. >> i said it before anybody else said it.

>> i'm throwing the keys away. >> trash yourself. >> without comment andrew -- sometimes you don't wear socks >> it would be a bigger problem for you. >> a lot of times you don't wear socks. i see you haven't been using a razor. >> those baby socks. the no-show socks. let's talk markets >> we'll be coming back to omaha. today and tomorrow let's show you the markets right now. we are looking to open lower on the back of some of the earnings news yesterday from apple and amazon dow off 104 points nasdaq down 125 points s&p looking to open down about 27 points. we should show you the 10-year yield this morning we're back up at 2.871%.

you start to see how folks are thinking about the world joe. oh, yeah okay i'm still focusing they have convenience stores, becky. you can do something >> i didn't realize it until 3:30 this morning. there was nothing open i'll deal with it after things open i'll take care of it as soon as the show is over >> that's what i'm saying. unless you brought pants. >> i'm not going european all weekend. >> not that there's anything wrong. >> i realized it at 3:30 a.m >> they have them out there. amazon shares are falling sharply. the company posted the first quarterly loss in seven years. slowest sales growth since 2001 and amazon took a $7.6 billion hit on the investment in rivian. thomas the tank engine

th it lost half its value in the quarter. the outlook for the current quarter. the street looking for $125.5 billion in revenue now amazon projecting it will bring in $116 billion and $121 billion. that haircut there it attributes the slow down to macroeconomics conditions and the war in ukraine andrew i'll put my razor to this one. amazon shares falling after the initial pop. beating estimates on nearly every metric the board and company reporting the pace of the buy back of $90 billion after spending $88 billion in buybacks last year. this is it apple did not provide official guidance the cfo said supply strains

could hurt $8 billion in the current quarter. apple not -- apple is like everybody else in "us" magazine, they are like us they are like everybody. they can't get away from the same problems everybody else has. >> that is interesting them saying they are not immune. people looked at apple and tesla and think they can deal with these things especially the big wither companies that worked through the things this is the topic that we have been talking about for a couple of weeks now with the china lockdowns. the rolling lockdowns. if gottleib is right, you have to wonder what this means. these are the inflation pressure that the fed cannot do anything about. >> i was blown away by the piece in the journal

do you have access online, beck? why xi jinping has to stick to the zero covid policy and what it means 45 cities total lockdown 373 million people more cities actually in de facto lockdown it harkens back to 1958 and some moves made by mao back then. i didn't know it involved sparrows and everyone went out and killed sparrows because sparrows were eating grain he said he could save so many people >> i read about this >> if he got rid of the sparrows that ushered in a locust plague. so many ended up dying from the famine that is not fresh, but happened before and they are drawing parallels tothat where he staked his reputation and the party congress is coming up.

it is all based on onthe zero covid policy it will affect everyone. if this stays the way it is. >> how many people did you say 368 million? that is more than the population of the entire united states. >> more than the u.s 373 million people that's 40% of china's gross domestic product comes from those areas. no way the ripples of this aren't felt and apple is the one. they're us is us better than people >> us is a little edgier. >> more fun, joe more fun >> us is a little more fun okay elon musk. now we know. huge selloff around 1,000. tesla down 900 elon musk was selling $4 billion worth of tesla after he made his

bid to take twitter private. this is the new s.e.c. filing. the filings became public and musk tweeted no further tesla sales planned after today. it is unclear if musk sold more tesla shares yesterday the filings only cover trades he made on tuesday and wednesday. that shows it is a self ful fulfilling problem probably we should assume he was going to sell some that makes or throws the bid into question. when that is plunging, i think that is one of the reasons twitter was nowhere near $54.20. then, as it goes down, he is getting less for each share he sells to cover it is -- >> what are the chances? right now -- >> i think he feels he said he will do it so he will do it. you saw what he said about

running it he said you don't think i can run this with a subscription service and layoff people and job cuts look at how i managed to run te tesla and spacex it is questionable, andrew where is it? >> it is only $1 billion to walk i say only $1 billion to walk. sounds crazy >> there is a little bit of the ego part the more people that say he can't do it. he will prove them wrong if you look at where he was selling. i looked through the filing quickly. he started selling at $933 and went down to $904. again, as you mentioned, we don't know if he was selling yesterday, too, just based on what he said >> it sounds like he was. >> that is what i thought.

how much of the pressure was from him selling alone and nobody to catch it >> the pressure is relieved. does the normal buying the results were good. does that come back? is that the only thing that's been depressing tesla is elon selling himself? >> amy wu told us the retail investor has been there for the last two years propping that up with a lot of options trading every time it sold they were not there this week. maybe that's the big question. she would not bet against them >> is my makeup okay today, be becky? >> let's see >> you do. you look gorgeous. >> for two years, i didn't have anybody. >> the same. we're all capable of doing it ourselves. other people are better at it. >> i feel i'm used to it

the brush. it's not pleasant. >> joe, i'll get you candy and bring it back. peanut brittle lollipops? >> i'll start doing your makeup, joe. i'll come in early and do your makeup >> that we have to see we'll put that out on cnbc.com that's a good idea >> pay-per-view. cnbc pro put that on pro. behind the pay wall. >> how will you do me if i don't have a mask on >> you are not wearing a mask now? >> all right when we come back, we will get you ready for tomorrow's berkshire hathaway meeting a lot of things coming up at the meeting. we will look at two of the company's newest holdings. we talked about occidental and hp you are watching "squawk box" on

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we are live in omaha for the berkshire hathaway annual shareholder meeting this weekend. the share homholders will hear warren buffett talk about occidental and hp.

t joining us for more is mark cash the equity analyst who covers hp guys, let's walk there these these are big bets in each of the stocks steven, the best performing stock in the s&p 500 is occidental it has been a huge performer a lot of that came after buffett revealed his stake and a lot with energy prices what do you think? >> i think the context here is important. berkshire came in to fund a major acquisition in 2019. it was already owned in preferred shares the march holding you are talking about is when they came in and bought the common stock it say vis a vote of confidence

the company. i think it also speaks to the duration of the investment that berkshire was looking for as they moved out of the preferred into the commons i think that is really the prime issue here this was a company that levered up to make acquisition the value creation for common shareholders is the de-leveraging cycle with $100 oil. it worked constructive on the stock primarily because we don't see that pull back in oil price. that de-leveraging cycle is very attractive to shareholders >> steve, buffett told us he bought the stock because he listened to the conference call. he said that the ceo is doing everything right

running the company the way he would run it do you agree with that >> i think i do from the extent that the story since 2020 has been a very methodical approach to de-leverage the balance sheet and de-risk and an focus on capital on areas that matter occidental has an interesting chemicals business it has a mid stream business for pick up of u.s. oil exports. also a huge addition in the permean with her previous life that she ran you have a ceo which understands the situation on the ground in west texas all those things and if anything, when we speak to the company and vicki, what we hear on what berkshire wants which is the question people ask is keep doing what you are doing that is a common refrain with berkshire hathaway holdings. >> mark, let's talk about hp

that is one that has people puzzled trying to figure out what warren buffett sees here. the question is is this another investment like apple where he has done well or more like ibm where berkshire hathaway did not do well? >> thanks for having me on great question i think what this comes down to when you look at 2020 when xerox tried to take over hp, they laid out a $16 billion shareholder return plan. we will return the cash flow to shareholders we -- they bought back 25% of the market cap they raised dividend to $1 from 75 cents last year it is allabout returning shareholder capital. that is what is attractive to buffett here it is not a high flying tech name, but more of a steady company. it is going to return capital. it generates solid free cash

flow these are attractive things to buffett and that's the question. is this an apple or ibm? our expectation is he was building a stake at a great time when you are getting a bigger stake as capital or shares are bought back. also pc demand was at record highs because of the pandemic. absolute record demand no pricing pressure from supply chain constraints. you know, when we look at our long-term view, we think the party has to end at some point the supply chain will normalize a and pricing pressure will come back the stock may face pressure because of the normalization we expect to occur. >> did you go underweight on

this before or after the stock popped >> we were we have been this whole time expectation that they are absolutely -- they are benefitting from needing pcs in record demand and hybrid work picking up pcs need peripherals at some point, you don't need it as much. it may be an inflationary environment and on the consumer side, people will push out notebooks or gaming or premium pcs. we expect demand to normalize. especially with bigger competition in the market with d dell we will see the pressure ramp up long-term, it a challenging environment. it is a commodity based environment with the pc and printing markets they are in they are trying to diversify

i think more cautious about the ability to get away from the commodity based products longer term >> mark and steve, thank you for being with us. by the way, we have plenty more on the berkshire hathaway annual meeting. including nebraska furniture chairman we will talk to him if the con s ass consumer is spending that is coming up later in the show tomorrow, cnbc will have e exclusive coverage on the cnbc app. it starts at 9:45 a.m. eastern time joe. thank you. chevron out with results earnings beat estimates. the company is doing its part to grow domestic supply with u.s. oil and gas production up 10% in the quarter. looked at other details. trading back to $160

mid pandemic at the beginning is $70. back to 2015, when it there was trouble, remember when oil wenwent negative $70. you see it when it was $70. i guess that was a buy at $70. the up stream and down stream and permean production all of these metrics are interesting again. they are not going away. coming up, former president donald trump back on social media. this time on his own platform. what is it called? a post it is not called a tweet if it is not on twitter. what is it you post details after the break.

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we are going to look at the shares of digital world acquisition corp the spac behind truth social former president trump's social media platform shares soaring after the post for the first time in months suggesting he may become more active on the app. former president trump posting i'm back #covfefe with a photo of himself at mar-a-lago in florida you recall that was the typo and if there was an edit button, you would never see covfefe. it was a late night tweet that

grew into a meme on its own. guys, elon musk posted something about this he showed it was popular and more popular on the apple apps, i guess. he also said what a terrible name truth social what a terrible name for the social media site? >> platform. >> a strange thing to buy an asset and talk about how terrible it is repeatedly. isn't that an odd thing? >> unless you have a big plan to change the whole thing >> elon was talking about truth social >> no. by implication, all of it is to say look how bad twitter is to truth social it is a very strange >> it is not about the money he wants to make a lot of change for him to do this much, he thought there were issues he wanted to fix at twitter

whether you agree they needed fixing or not, elon musk thought they needed fixing >> we talked about it. >> at least we got the ministry of truth getting set up in case he doesn't run it the way it needs to be run. we can get whatever her name is. just ride her overa all of the stuff in there can you believe it is called the ministry of truth? >> what is this? what are you talking about >> the department of homeland security setting up, i forget the name of it the misinformation bureau to watch if there is misinformation >> seriously >> you can't tell me you don't know about that. >> i was flying yesterday. this happened yesterday? >> did this happen yesterday >> we've got the lady in charge. the same lady that buried the laptop story or attempted to now she's going to be in charge

of the ministry -- not from twitter. >> no. >> check it out. i think it is the cover of -- it's everywhere. big sister is watching that's her it's very orwelian they talked to mayorkas about it it is staggering obviously the right is going crazy. jim jordan and everybody's hair is on fire check it out that's the world we're living in i hope i haven't given out any disinformation this morning. i may have about leg hair or something. >> that would be me. we'll talk about amazon. amazon shares falling after the slowest revenue growth since the dot-com bust and later, mario gabelli

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good morning welcome back to "squawk box.

we are live from times square and the berkshire hathaway annual meeting in omaha, nebraska cnbc will bring exclusive coverage of the meeting all day tomorrow go to cnbc.com/buffett let's show you the futures let's look we are seeing red arrows this morning. down by 156 points for the dow s&p off 35 nasdaq off 151 we have earnings today influencing the futures. andrew that we do take a look. we want to talk about chevron. exxonmobil with adjusted earnings of $2.07. the company's russian operations exit announcing the buyback program for $30 billion through 2023 you see that stock down about 1.25%. amazon stock also down this morning.

this after reporting slow growth and rising costs citing inflation pressure and war in ukraine joining us to talk about it is the senior tech analyst at jefferies. brent, what do you think here? the cloud stuff was holding up advertising wasn't the ecommerce business wasn't. >> good morning. i think we have a post-pandemic hangover amazon described you went from 20% to 40% growth overnight. clearly, you cannot automate deliveries of toilet paper and toothpaste they had to double the employee count. when things start to normalize, they cannot pull back quick on the throttle the second factor is inflation they are by far in tech the biggest company that gets hit because of what we are seeing

with expenses rising so the good news is you have the offset of digital business with advertising as well as aws aws business could be worth in our model, close to $1 trillion if you go out a couple of years. you know, that's the bright spot and that keeps the lower margin retail business going. with we have a buyer's strike. results are not what anyone wanted amazon will not help the tech trade at all at this point >> in terms of catalyst to move the ball, is there a catalyst or is the multiple comes down to say maybe this is cheap? >> multiple expansion and what most of our clients want to see is numbers get cut the deck is cleared and they

acknowledge the economy is slowing. most want a numbers cut. the catalyst is getting through the earnings season and ave acknowledging head winds that question he is most clients are believing that we are going to see a bigger recession in 2023 i think most of our clients believe we have time to buy it the catalyst is not fill back until the last half of the year and believe they have conviction there is not a lot of confidence having covered tech for two decades, i have not seen it this cold in a long time. the intention to buy is among one of the lowest i've seen in a decade >> that was the question, brent. if everybody doesn't want to buy right now, is it a falling knife and you shouldn't buy?

or if you think in 2023 a recession is going to be here, in a weird way, you need to buy before it all gets -- unless you think this is a recession that is a five-year long recession. >> exactly it is a bullish sign given the lack of demand and cuts. historically that's the time to buy. i think everyone believes we may have a couple of quarters of cuts the question is how deep are we going to go? that may take time some of the companies like microsoft that reported said no economic headwind. we don't see anything and still have it at full throttle others are pulling back. this is a quarter or two this is why you are seeing the volatility in tech where the stocks come up they sell off quickly. there's just no conviction again, many of the top money managers are working in energy and airlines and opening trades. not doing work on tech that is a prevailing sentiment

we have been hearing for the last two weeks >> okay. brent, i appreciate it thank you for the sperspective. lots offolks focused on which way amazon heads joe. thanks coming up, stocks to watch how robinhood shares are reacting to the big drop in active users that's next. later, we talk to mario gabelli and what he expects to hear from the oracle of omaha tomorrow "squawk box" is coming right back for your full financial picture. with the right balance of risk and reward. so you can enjoy more of...this. this is the planning effect. you're a one-man stitchwork master. but your staffing plan needs to go up a size. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates

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traders to the platform in droves monthly active users declined to 15.9 million large customers still remain active robinhood customers have become more cautious with their portfolios, becky. a sign of the times. maybe where the market is as well >> yeah. volatility leads to that if it is volatility and you lost money, maybe you are cautious going into this. human nature when we come back, a special guest live in omaha from the berkshire hathaway meeting we will talk to david rolfe who hasn't always agreed with warren buffett's investments. "squawk box" will be right back. (vo) verizon is going ultra! and now, you can too with the offer you just can't miss.

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welcome back, everybody. let's talk about value investing in a rising rate environment, with an investor who was a long-term berkshire shareholder until recently you've been coming here for what, david, more than 20, 25 years? >> about 20 years. and >> and you were a shareholder until 2019 what made you sell >> we had become less enamored with some of the capital allocation decisions

the 37ple precision cast parts was problematic right out of the box. it was not much of a growth company. and thenstock portfolio side, we thought that mr. buffett really left some low-hanging fruit that we thought in his wheel house, companies like visa and mastercard, costco and microsoft. and this was really before he started to buy back stock in significant amounts, but we had to stick to our tdiscipline we thought we had better opportunities. so we sold in the fall of 2019, after being a shareholder for 20 years. >> what did you put it in instead? >> motorola solutions, which has lagged a little bit. but we also made google our largest holding bin, and we also

bought nvidia. and some of those sale proceeds went into stocks like united health care and first republic bank it turns out it was a very good move for our clients, even though berkshire stock has done very well over the past year or so >> year-to-date, it's sharply outperformed the s&p 500 i just wonder what you think about what he's doing lately >> those are right in his wheel house. i think the occidentals may be turning into a home run than what people thought at the time. allegheny's kind of small. and hp's pretty small. he has to swing a pretty fat bat, given the size of berkshire. but it's going to be a very happy crowd this weekend >> you're here anyway. you're a long-time follower.

what are you looking to hear this weekend >> probably more of the same i'm really interested to hear about geico. we own progressive and it's -- >> a play against what berkshire's doing here >> exactly it will be interesting to see what he says about that. because, you know, geico has been such a powerhouse for as long as. all the attributes you would want to see in a really terrific growth company, but they sputtered of late. and it will be interesting to hear if they still have that number two market share lead over progressive that's probably the biggest thing, given that we own progressive now. >> what would it take to you convince you to buyback into the stock? >> for sentimental reasons,ing if it weren't for mr. buffett, i wouldn't be in this business, following him from the '80s when i was in college

we have a big holding in apple, progressive, we own paypal and visa we have overlap. and even though we don't own a railroad stock, we own old t dominion sdp >> you're doing it your own sfwha. >> when you see the shares take off over the last year you kind of think ooh, i wish i was back in at some point >> i was peeking a little bit at that and some of the stocks that i mentioned haven't really done, apple hasn't really done that well this year, and berkshire's been a steamroller, so a very happy crowd theis weekend, i'm sure when we come back, we have a lot more to talk about, much more from the berkshire hathaway annual meeting

and john rog eers. looking forward to this. cnbc has exclusive coverage of the meeting tomorrow can you go to cnbc.com/buff tote watch it live.

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welcome back to "squawk box. becky quick is in omaha this morning, getting ready for a very special event, becky? >> a very special event that you're going to be at a little later today, too we have a good lineup all around the berkshire hathaway annual meeting. we're going to be speaking toll jim weber. and the chairman of nebraska furniture mart, mario gabelli. and john rogers, who's a

long-term value investor you can see it in the cnbc app our coverage begins at 9:45 a.m. eastern time and it pretty much goes the entire day warren buffett and charlie munger will be on stage answering questions. and it should all wrap up sometime after 5:00 p.m. this is a big day. you can only see it on cnbc.com/buffett or on the cnbc app. we are in the center where many of the companies have set up booths for the shareholders. this is something we've been coming to for many, many years it's similar to what we've seen in the past, although there are

covid al administerations. tons of shareholders will be coming here, and in the past we've seen 40,000 shareholders i don't know that we'll see that many due to covid concerns there's also a vaccine requirement. you have to have proof of vaccination to get in the door, and there are some people who may not want to deal with at that you can watch it live on the cnbc app but i would anticipate you are going to see thousands and thousands and thousands of shareholders here nonetheless. and these halls will be packed you've got dairy queen there's a lack at the see's chocolates can you pick up the geico gecko's here jimmy buffett has a new boat being shown for the first time i think you're going to be able to buy this boat it's this really cool margaritaville boat. and we'll be talking to jimmy

buffett about that on the streaming show, too. but this is the place where we'll see. people are coming because they want to hear sccharlie munger ad warren buffett take questions. the markets, the volatility % anand declines, you can be sure there will be those who want to get their take and what they're seeing from strength in the consumer at this point a lot of interesting things happening and people will be eager to hear, joe >> i think squimyjimmy buffett s like, he may turn into warren buffett. he's got a lot of business interesting now. i'm going to tell you how i know this >> because you're moving to margaritaville, one of the retirement communities? >> because there's a million of them on "wheel of fortune. the vacations are all to

margaritaville they're everywhere i don't know the business arrangement, how that's set one jimmy buffett. maybe you can ask him about that what is his -- >> he's going to talk about it the reports suggest he's worth anywhere from $500 million to $1 billion at this point. he's so loved. you have parrot heads everywhere who follow him >> right >> but he has managed to turn his lifestyle brand into such a huge brand margaritaville started out with universal studios. as you know, there's a margaritaville outside the studios in orlando now there are margaritavilles all over the place vacation resorts, cruise lines that you can set up. but the huge thing in florida, they're building the third margaritaville, they call it retirement community, people 55 and up, where they build hundreds and thousands of houses being built right now and two of

them up and running, and this is a lifestyle hangout places these are people who want to live the lifestyle they have a margaritaville pool and restaurants. and they ride around in golf carts, because they have all kinds of fun nights that they show up for. these are people who are extroverts they have worked hard their whole life and want to kickback and relax. jimmy buffett bought one of the homes. we're going to talk about all these things you are right, he is a major brand and major businessman on top of having a pretty great life and kicking back. >> if pat and vanna gives the thumbs up, that's all i need to see, know what i'm saying? and 55 and up, that could work for me i >> it's pretty cool.

i've been reading about tease thi these things t's not like what you think of with old people retiring these are empty nesters who want to have a community, and a lot of times at home we're not hanging out with people on the streets. they literally have the golf carts, and they can drive home after they've had a few margaritas >> he's almost a billionaire now. >> the reports i've seen >> and add this on top of that because if you sold i don't know how many records he's sold, millions and millions. and even if you only get, so, so just from that he's got to be worth hundreds >> and he's still touring. he's here tomorrow morning, but tomorrow night he's going to take off, pa because i think he doing a live show in virginia beach or something

>> if that song had never been written, i don't know if he wrote it personally. >> he did. he wrote it in about six minutes. part of it he wrote on the bridge stuck in traffic and part of it he wrote after having a couple margaritas in key west. he says he wrote it in about six minutes and it has turned into this amazing, amazing lifestyle brand. >> you turn it with tequila and good mexican food, i'm not surprised it's a brand in and of itself >> you have to see this boat, this boat that's here. it is an amazing boat. i want one >> i think, like kennedy said, parrot heads, we're all parrot heads, i guess >> or jelly doughnuts. >> i saw prices on all that see's candy. you can't just go and get some stuff for me and bring it back, i guess. >> no, i'll buy it for you

i'm not that cheap i will buy you some. >> caramel and chocolate and vanilla. they're really good. they're like suckers >> i'm not familiar with them. oh, the lollipops. yeah, i'll bring you some of those. and by the way, joe, they have really great bacon here, too >> they do whoa >> no, i'm just trying to make you jealous. >> bacon-flavored lollipops, that's an idea we look forward to your interviews today and the big event tomorrow >> thank you >> that's really natural check out the futures this morning. you can see we're down -- i can probably come up with that myself we're down 157 and nasdaq down 165. pretty good day yesterday even though you had that gdp surprise let's get to dom chu, who's looking at this morning's movers

you like margaritaville, too you visit margaritaville >> i love margaritaville i love the bar mixes i love the restaurants i've eaten at them before. so i mean, listen. i'm hearing this whole conversation, i was listening contently, just the mnumber of consumer brands. i had no idea we would go that deep into margaritaville i love see's almond toffee brittle. that was my favorite thing growing up, and i am wearing, because a lot of people have commented on the shoes i wear around the office, these are bro br brooks running shoes we're going to check on the oil and gas giant. we saw bigger gains yesterday. but reports, revenues and set profits that both top analyst

estimates. helped by the tailwinds and the surge in prices. che chevron said oil and gas production rose. down 1.5% in the premarket right now. next honeywell, little changed the industrial conglomerate that makes everything from aerospace components to climate control systems. honeywell raisedity full-year profit guidance. people are flying more, people are building more. the economy tries to bounce back from the covid pandemic. and we're going to end with a check on shares of apple and amazon they make up a large part of the s&p and nasdaq as well th so apple comes out with better

than expected results, record in some cases, but this idea that supply chain issues could have an $8 billion impact could be an issue going forward. worst than expected for amazon in profits at least in addition to the notion that the current revenue forecast may fall a little shy of expectations amazon building more, hiring more >> thank you for that. we should, we're going to continue talking about this, the disappointing quarterly results from amazon, apple and also robinhood. that's got a lot of people worried, a massive selloff after hours for apple that s shares of amazon, robinhood and apple, those shares plummeting. i want to start with the two big

reports, apple and amazon, and then i want to get through the robinhood thing and chevron and honeywell and what that means. let's start with the apple did you expect this or not i'm surprised the market didn't expect a little bit more of this >> on apple, andrew, it was a phenomenal quarter and i think we all were wondering what they were going to say about china and supply chains no, it wasn't a surprise i'm surprised the stock down, quite honestly you know i call earning season silly season i think the buying opportunity, i mean, they beat on earnings. they beat on revenues. they saw march quarter record revenues in iphone and mac gross margins and 825 million paid subscribers across all services, up 165 million year-over-year i don't know what they could

have done better, quite honestly, and the guidance is conservative, probably, but it is what it is. but the fundamentals are very strong is that buying opportunity for sure >> buying opportunity for amazon, too? >> no, well, see the problem with amazon is it is still very expensive, right even if you look at a ppe basis up 34% on a two-year basis, and margins grew 550 basis points consequentially. t and to me there's too many moving parts they really did benefit on the retail side from the pandemic. now you have really tough comparisons. for me, that one's a little harder i'm going to watch it, though. >> we've got chevron and exxon

what do you think, you like these stocks this is the other side >> that's right. you know, i like energy. i'm overweight energy. i like chevron, i own chevron. i think they've done a much better job in terms of execution versus exxon to see total revenues up 69% year-over-year, i think that's absolutely amazing they are minting money at the oil prices at these levels their break even costs are $40 in oil think about the cash flow, and they're plowing it back into shareholder returns. they've increase there had buyback. i think they're going to do more than 10 million in terms of a buyback t buyback this year. nothing wrong with exxon, i just brief the assets that chevron

has >> got a view on honeywell >> honeywell sfis fine. aerospace up 5%. building products up 8%. the sprob tproblem is that they big exposure to russia that's why they saw a 260-point drop as a result >> let's talk about robin hood for a second and it's not just robin hhood itself >> they have tough comparisons, too. and all of a studden they released these numbers there's nothing good in this report, and then they don't have earnings, and they have tough comparisons. >> and they missed across the board. total revenues fell 43%.

transaction revenues fell 48%. monthly active users fell 10%. is this a really challenging environment for this company and as i mentioned, they don't have any earnings. that's not what this market wants at this point in time. so i think you have to let the dust settle on this one. >> what's the chance it becomes a big target for one of the financial players? >> it's entirely possible, but i think it's at a lower price to be honest with you, when you have these kind of results and you're not getting the eyeballs. if monthly average users is declining, that's disappointing, we don't know where it could go. >> thank you appreciate it on this atmosphere morning. we have a lot more coming nun the show elon musk selling tesla shares and that's got some tesla investors worried.

details about that after the break. let's get a check on the market. "squawk box" coming ghrit back "squawk box" coming ghrit back lack at the red on youe able to work from here, there has to be someone here making sure everything is safe. secure. consistent. so log in from here. or here. assured that someone is here ready to fix anything. anytime. anywhere. even here. and i mean nobody... makes hybrid work, work better.

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some cash to pay for twitter, and that apparently meant sharing some shares of tesla robert frank joins us with more. hey, robert. >> good morning, joe elon musk selling 4.4 million shares, about 2.5% of his stake. he will have to pay about a billion dollars in taxes on that gain, so he'll pocket about $3 billion. mux tweeting out last night, no further tesla sales planned after today. he did likely sell shares on thursday, we don't fknow how much the problem is where musk. >>ing to get the $21 billion in cash that he needs for this deal his tesla shares as well as $13 billion in bank loans. he has about $3 billion in cash from last year's stock sales so he still has about $15

billion in cash to raise he's either got to find an equity partner or sell part of his stake in spacex. if you look at the stock of tesla, it's down about 19% since he first announced this stake in twitter. so if you look at what this is going to cost him in the end, you have to consider that he's lost $35 billion in tesla wealth since the stake was first announced. so you could say this is already an $80 billion deal for him. we're going to have to see where these tesla shares eventually shake out. >> that's on paper, and i'm sure that he thinks -- >> yeah. >> that this thousand dollar tesla share price, he probably think it's a $2,000 or $3,000. >> it might be >> those guys think, people think it could be way higher i don't really know, i don't

know about the market stuff. no one could ever lick which d date an entire company in a two or three-day period. the selling pressure brings it down, but it's certainly a point well taken andrew, what do you think? >> the thing i'm trying to understand if you look at twitter shares, we're showing tesla shares down. they're up this morning briefly by about 1%. twitter at 49.66 when you talk to investors and others, do you think that the reason there's such a disparity and the view that maybe this doesn't close is it because of this margin issue with tesla shares do you think that's what's weighing on people's mind or just the sense that, you know what que que elon might have one view one day and another view another day

who knows? >> as you know better than i, there's always a spread. some of it reflects maybe some regulatory risk. he's still got issues with the fcc as we discovered earlier this week. one of the reasons i was surp surprised at this stock drop he doesn't need this cash closer to when this deal closes maybe the reason he sold so early this past tuesday was to really telegraph to the market and to people on both sides of this deal, i am going to do this i'm going to raise cash right now. that's how confident i am, e-ron musk, that this is going to get done so we'll see how much he sold

yesterday, but the fact that he's selling this early, way before any kind of closing date, tells me he is signaling, i'm going to do this and maybe he's signaling it that early because of the spread. >> why would you need to signal it, by the way, though >> yeah, it's not like they're competing bidders. i just wonder why he's selling this far ahead of a closed deal, especially given where the arb is right now >> thanks, robert. yeah, he's got time. so you never know when he'd be selling. you find out afterwards. toss it out to you, becky. i've got some information that you probably already know. you know that jimmy buffett didn't think he could bring that song, margaritaville, to number one, didn't think i had the clout, so you know who was going to record it and he die td that year >> elvis

>> yeah, elvis and it would have just been a song if elvis recorded it, instead of what is now a state of mind. >> a lifestyle, state of mind, a brand, you're right. >> one other thing, cheeseburger in paradise, another song. outback steakhouse operated a chain of these from 2002 to 2020 i've been to one it was not jimmy's in fact, jimmy sued the one in waikiki t w waikiki and they weren't able to open anymore >> an incredible brand, and they continue to roll things out, including the boat >> my song i don't want to see elvis sing >> it's a jimmy buffett only

song it is. we'll talk with this and a lot more we are live from the site of berkshire hathaway and when we come back, we have the ceo of brooks running company he took this company from the verge of bankruptcy back in 2001 to what it has become today. he's got a new book out, talking about the experiences. we'll talk to him about that, and we'll talk to home about what he's seeing in the supply chain. there aren't brooks running shoes here, and it's because of the supply chain the dow indicated off by about 127. "squawk box" will be right back. (laughter and music) (bat swinging) the aflac pre-pain show. aflac! ohh, mark is about to become a living piñata. luckily, aflac will help cover his unexpected medical bills. aflac? - (whimpers)

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we are live from omaha, nebraska this morning and counting down to berkshire hathaway's annual meeting which will be in person for the first time in three years. our next guest is part of the berkshire family his new book is called "running with a purpose." how brooks outpaced sglie ath competitors. you have been like every other company, sigging and s.a.g.ing >> it's been two pronged for us. the first is sort of single points of risk if you have a factory that was quarantined in southern vietnam.

we lost 45% of our footwear production over a three-month problem. that's a discrete problem for us you can't make that up it probably will cost us in revenue. last year in q4 and this kq1 we've recovered. then there's the overall supply chain that almost affects everyone generally speaks, costs are way up especially in air freight, and our lead times went from h45 to 90 days. like everyone, we're reacting to it i brielieve, hopefully that wasa bubble we think that's going to normalize out over the next year, and with that we think the supply chain and logistic side will as well >> the consumer demand has been so strong to this point.

have you been able to raise costs? >> we have taken selective price increases where we think we can, but our whole industry is so competitive. it's a big market place, but we've done that where we can, but we don't have unlimited pricing power. i do believe in supply chain that costs are going to mediate a little bit >> you think demand is going to come down, are you sigeeing it already? >> people are running, it's sticking it's moderated we're not seeing the sgroet that we saw in participation early on, on the retail side we're actually seeing a little bit of softness in q1. it's flattened out a little bit. some in the industry think it's somewhat due to the stimulus in

consumers' hands that has less impact on our customer when they need running gear, they're going to buy good running gear >> let's talk about your book "running with a purpose. i knew parts of the story, but not as much as i know now and i'm even more impressed. this is the company that you took the helm in 2001. i think they had had four ceos in the months leading up to that >> in two years. >> so you took over a company that was facing bankruptcy there was an office pool that suggested youmight stick aroun for four months would be how long you lasted before you were out the door, too. what happened? how did you turn it around >> first of all, i've run several businesses before that. >> and they were all turn arounds, and brooks was a turn around at that point but i saw, a, a great category in running i was a runner, and it's the largest category in all the sporting goods, it's fitness and investment in yourself, so i knew there was an opportunity there, and we didn't have to sort of beat anyone to be

successful and to survive and be profitable so that was phase one is to get the business in a good footing and it happened with ghost shoes. the adrenaline saved the company in so many ways. now it's one of the top two shoes in the u.s. and the number one is sgoes i knew this could be a great business and brand i played through berkshire hathaway's our fourth owner, so in the book i really wanted to tell that story. it's a great story >> and berkshire hathaway came in, what year? >> we were part of fruit of the loom in an acquisition we came into berkshire enterprise in 2006, and in 2012, warren spun us out as a stand-alone company. >> that's a huge vote of confidence in you as a manager >> and i think in brooks and the opportunity we have in front of us we have an opportunity to build a great brand.

>> you have had your own personal setbacks with a bout with cancer. >> icu included that in the bok i included a chapter about that. i don't recommend cancer, it's awful. but i'm in year five now, i believe it's gone and out of my body the treatment was a challenge, but i'm here, which is wonderful, so i'm glad totell that story you learn a lot about yourself when you are challenged, and i certainly did, and i share that. >> and you wanted to stay with the company and keep running things >> i have the best job on this floor. we're building a brand, and i'm part of a team in doing that as i had run three businesses, avenue every three to five years and they got sold, i wanted to create value i love what we're doing, and it's a fantastic category. >> i am so gralad to see you

learned a lot of things i didn't know and it's great to see you here great to have you. >>'s fun . >> still to come this morning, apple shares, down this morning after reporting after the bell last night we're going to dig through the numbers and bring you the analyst reaction concerns about the supply chain here apple ceo saying they are not immune from the supply issues everyone is seeing it's down by about 2.3%. nebraska furniture mart chairman irv blumkin will join us the berkshire hathaway meeting is only available at cnbc.com/b cnbc.com/buffett or in the cnbc app. it pretty much goes the entire day. we'll be back after this

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ha >> apple beat nearly every

metric apple didn't provide official revenue guidance but warned that supply constraints could hurt sales by as much as $8 billion in the current quarter joining us, senior research analyst, pretty big number how confident are you, tony, that that's the, in the right ballpark for what we're talking about, and how, what do you think the standard deviation on what actually happens will be? could it be double that or half that >> good morning, joe it is a big number, $4 billion to $8 billion in terms of the potential impact, but i would note that two quarters ago, apple talked about a ref knew impact of being greater than of billion in the quarter they had talked about a $6 billion impact so supply chain has had a significant impact on apple for

most of the last few quarters. i think you're right. there's a real question on how big that range could be look, apple is about as good as anyone in terms of supply chain management the factories that were shut in april have largely restarted and so this is principally a bet on the ramp of restarting and whether you could have incremental covid outbreaks tra co that could push that back. never say never if china completely shuts down and you have facility shutdown that could be worse many of these facilities, these are partner assembly facilities, they were all shut, they're re-ramping >> just reading some of the analysis today about what is possible in china with president xi and you know, what he may be thinking about in this zero covid policy that factors into

how big that or how small that number could be. but up to this point has anyone been better at maneuvering and navigating around those issues. that's the other thing maybe it could be far less than $8 billion >> look, if covid is benign, apple will likely end up at the low end of the range they've been pretty conservative in their guidance. a couple quarters ago, the impact was $6 billion to $7 billion. this quarter was probably only $1 billion to $2 billion >> switching gears, we don't have that much time. the overhang on tesla, given that we don't know how elon musk is going to finance the twitter buy, does that factor no into y thinking on tesla? >> i'd say less his selling of shares, because this is pretty big and liquid stock if he were to incrementally

reduc reduce his position a couple more percentage points, i think a bigger concern is the potential distraction, as brilliant as elon is, he was already spread thin across his companies. and he seems to have a lot of energy and focus right now on twitter, and so the concern ultimately is will, hwill tesla be impacted by having less of elon musk at the tiller. >> i think i could fix twitter in five minutes. stop doing what you've been doing, unilaterally to one side of the aisle that might fix it. i don't think that's a distraction. i think the overhang on the stock, it was obvious to anyone, tony, what was going on. it was so obvious. it's like, scary, you didn't need to see that 98.7% of political contributions from all those people out in the san

francisco headquarters or wherever it is the you didn't need to do much analysis to figure that out. so i don't know, and aren't you surprised that he felt that strongly about the issue that he bought the whole company, with no thought to how it could impact tesla or himself or his reputation >> i think elon is driven by what he believes in. and ultimately, he has great confidence in his abilities. >> sure does >> and i think his belief was, look, this needs to be fixed i i can do it, vi have the bandwidth. and to that extent, you have to give him credit. >> you sound pretty sanguine on apple. you'd still bay those shares elon thinks tesla's going to

2,000, 3,000, 4,000 anyway so what does he care if he sells some for lower than a thousand you think he thinks that >> no, i mean, again, i think, you know, elon musk is not necessarily a net worth, you know, counter. his belief is really driving electrified world, and so the degree to which his net worth goes down a little bit in the short term i don't think is a concern for him. >> me neither. i don't think about fluctuations in my net worth that often good to have you on. appreciate it. becky, i hear you got some great, who was watching? doordash was watching? what the hell happens? you have a personal delivery >> i got a personal delivery from doordash. people say doordash, i didn't order anything from doordash

apparently, doordash was watching earlier when i said i forgot my razors, they sent someone to walgreen's, appreciate it. that was amazing i kept saying, i didn't order any doordash and i'm not eating or drinking anything from someone i don't know where it came from. >> i don't have any taco bell here right now do we? is there taco bell here? no, there's none none in the studio right now >> in the nasdaq in times square >> the nasdaq on times square, 43rd and seventh, side inch tnkce >>ha you, doordash >> "squawk box" will be right back

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made to do anything so you can do anything. whoa. . our knnext guest is on the front lines of the pressure of the supply lines let's welcome irv blumkin.

it's so great to see you we've been talking to you for years about what's been happening. but what's happened the last couple years has played out so clearly. and your business is a great example of what's happening to businesses around the world. what are you seeing right now? >> it's been a wild ride, becky. right now you are seeing inflation impacting our business a rlittle bit but it's coming off such huge numbers from a pandemic, and our space was lucky in that people were spending time at home they needed new electronics, replenishing their homes, and it's been unbelievable and it's still at a high level, but you can definitely see a slow down. >> during the early days of the pandemic, maybe not even early, the first the first year and a half sore so, what kind of extraordinary

measures were you taking to get the product in the stores? >> that's a good question. every day we would meet to figure out what we would be doing the next week. we were just persistivoting andg sure we took care of the customer and had supplies coming so we could fill our shelves and take care of the customers but it was wild and every day was a new deal >> is it easier to get supply think point or no? >> no t's, it's still challengig domestically, lead times have come this, and that's a real positive, but they depend on a lot of components coming from overseas >> i remember i got to go to china with you in 2008 how many of the , how much of t product is coming from china >> it is a challenge

the cost of freight, the cost of the price of goods, moving it timely everybody seemed to be reacting, because business was so good over the last couple years and now all of a sudden there's tremendous flows and the demand isn't quite there, so there's an opportunity for people likeness o us to take advantage of it take advantage of the opportunity. because it's so inconsistent and some days 20 truck loads show up and some days you don't see any for 60 days. >> let's talk about the consumer first of all, has the consumer been okay with accepting price increases for all the cost increases you've had to deal with >> for the most part, yes, they have it's, i believe, getting to the point where it could be a challenge. because there's a point where even i look at it and say, you

know, i can't brief elieve somef the prices going on. over the last couple years, they just wanted the goods, but it is definitely impacting it over the last couple months where you can see there is a slight shift in the demand people are traveling more and getting out. what was a captive audience now has a much broader shield. >> you sell electronics, too i remember warren talking about how part of the reason you bought into apple, the trends he saw it your store, people buying those products and being so hooked on them and only wanting apple and no discounts ever offered on any of the apple stuff. we had apple earnings last night, and they were strong, but there were keconcerns there abot the supply chain >> for sure, consumer demand is still, still hot for apple products and there has been supply chain issues on some categories of goods. >> like which ones

>> ipads for sure have been a real challenge for us, and we get supply, but it's inconsistent supply, so we don't want to ever disappoint the customer so they're feeling it like we're feeling it on certain hot products >> you said the consumer demand maybe has come down a little overall for what you see in the store. how does that compare to pre-pandemic levels. >> it's much better than pre-pandemic levels, but, you know, we remember yesterday and '21 and '20. >> what are the hardest items to get ahold of >> you know, in the furniture category, upholstery still is a challenge. imported casegoods, dining room, bedroom. we have such a broad vendor source we just have to pivot and go where we can get supply so we take care of our customers >> you've been around for a long time, 1975, you were doing work

in the nebraska furniture mart, too. so you've seen the inflationary picture when it was higher than it is now. how do you compare what you saw then with what you see now is this. >> the patterns are somewhat consistent, there's a slow down u thedown there will be opportunities. we have to take advantage of those things and fight for our customers to make sure we give them good value all the time >> shareholders get a discount at the store we know there will be a hot of pe people coming through. >> coming up, we'll speak with mario gabelli. and as we head to break, you know, quick check on where we are. amazon dragging it down.

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good morning and welcome back to "squawk box" here on cnbc i'm joe kernen with becky quick live in omaha, getting ready for this weekend's berkshire hathaway meeting, and andrew's in transit, i think, at this point. >> he's on his way >> yeah, there's just a blank screen where he was. we wish him godspeed, safe travels. when's he due in are you bicpicking him up at th airport is this. >> i got stuff to do i'll be shaving my legs. >> people who don't watch will be like, whoa.

it's off the rails >> mario gabelli is here, too. >> i thought that was god, honestly i thought only i, it was only me that was hearing it. u.s. equity futures -- that happens sometimes. u.s. equity futures down about 40 dow jones down 110, 176. always in the back of our mind, 285 on the ten year. >> we also have some great guests with us here in omaha we're going to talk about that in just a minute, but it is a big earnings day, we want to check in with dom chu and the big movers >> good morning and good morning, mario gabelli, because i did hear that voice in my ear as well. we'll talk some of the fresher ones in the last hour,

colgate-palmolive, this is that consumer products company behind everything from his namesake dish soaps and toothpastes all the way to hill's pet foods. revenues were essentially in line with estimates. it did give a forecast for a key area and the range was generally higher than estimates, a mixed picture. other big name earnings reports out this morning earlier got big oil, big focus exxonmobil chevron, mixed picture for exxon. chevron beat on both fronts but is down about 1.5% to 1.25%. also honeywell raised its full-year profit forecast. honeywell up by about 2% and some of the big tech adjacent moves that are arguably having more importance on this

morning's trade. apple and amazon down pretty big. apple down 1.5%. amazon down nearly 10% right now. the results at apple generally good, but the current forecast plea inclu may include anywhere from a $4 billion to $8 billion issue in supply and intel issued weaker guidance for the quarter last night, despite beating estimates for profits and sales for the last quarter. intel sees supply chain issues lasting into at least 2024 so each of those three stocks, intel's down 4.25% i'll send things back to you in omaha. >> hey, dom, thank you very much we'll talk more about apple in just a minute. here in omaha, the berkshire faithful are starting to arrive. crowds are gathering, not here, because they won't let them in in yet, but across the street.

we'll bring ah fryou a front ro seat three big guests this hour, john rogers, sue decker and mario gabelli. we'll start with mario you know him well, our legendary investor, the chairman of gamco. you have a conference that you put together. >> this morning we're going to have standing room only for talk about some other companies in the agricultural ecosystem in town local companies, plus we like other companies on the agenda. >> why do you like ag, since you bring it up right now? >> basically, you go through cycles the cycle that's going on now is the farmer planted, u.s. farmer, corn, wheat, when they planted, it was going to be $6 a bushel

now it's two and a half times that they put in the price, l locked them in before prices went up. winter wheat, they're going to have significant cash flow cash receipts from commodities, and then they need to reinvest because they have underspent but they also, becky, want a piece of equipment that is going to be more remotely operated but also more precise. so precision farming so you drop the seeds in the right spot, put the right amount of herbicides down, water less and get more intense and you have to be practical, because you need to help reduce labor. john deere, case new holland deere, 300 million shares, selling around 380 case new holland, around $13, $14. lindsey, those are the equipment

supplies, then you have the whole ecosystem. >> let's talk about berkshire and some of its holdings, apple being one of them. and you hold shares of apple, too, in the funds. last night the company came out with decent numbers, but the stock's down because the cfo said they're not immune to the supply chain issues. >> to the degree that we own a tiny amount of apple, we bought berkshire back in november of 1987 not that long ago. we don't want to take it because you got to pay a tax unlike the etfs that can wash it out, we have the same rules, but it's not practical, okay so it's over $100 million position just in two mutual funds, and from that point of view, becky, apple is an important part of the bell-shaped curve of berkshire's assets, they have a $500 billion net worth, gap book.

and they've taken the share down from 1.2 million shares and we'll know tomorrow at 7:00 what the real number is when they announce the results so apple is important pause it's kind of, you know, 140 billion of their 270 billion assets on that side of the house but it's 2018 percent of the market cap that's why we look at it >> just in terms of the stories that have been out there about berkshire recently there was a financial times article questioning whether it should be broken up. it's the conglomerate that has worked you are take on this >> they've been talking about, who is berkshire, who's going to succeed warren buffett for the last 25 year every year secondly, the new mantra is let's strip the chair. if you want visibility, always attack somebody like berkshire

hathaway to make the case that you should have a separate chair and a separate ceo okay, and obviously, i was on the zoning board in my local community for 14 years you look at the holistic approach of what an individual is looking for you don't want to strip warren there's no need to, he's fantastic, maybe live another 100 years. greg able is doing a terrific job. they're buying allegheny, that gives them reenforcements on the insurance side of the house. so can they run these businesses okay you've got berkshire hathaway energy and 91% is owned by berkshire. greg able's been involved in that all along the railroad, they've got great management doing a terrific job. then you have a potpourri of other assets some like clayton and some that you just had on the program here, are terrific when they buy allegheny, they're

going to pick up another ten or 12 of these little manufacturing and industrial companies so it's not easy, but the comparison that the financial times made was ge. >> right >> okay. why not. you know, do i think they're right? i like points of view. i will defend your point of view, but i won't agree with it. so i like berkshire as is, i like it for the next ten years, i think warren has done a fantastic job. >> the whole thing about berkshire and this idea of splitting the chair, i mean that's calpers saying that what do you think of the calpers of the world >> they are doing it because submitting the chair and the ceo may have applications for a large number of companies, so why not take your point of view and use berkshire hathaway, even though you know it's the dumbest thing you can do really, seriously. but that gets the visibility to your program for example, if you want to read

the berkshire hathaway annual report about climate, they don't read it. it's only greg able put on a-4, way back in the back, but importantly highlighted how much they're spending and how they're reducing carbon, but nobody wants to read the foot prints. this annual report is fantastic in terms of details. some of them i read as warren would say are full of b-something. >> these are the things that are coming through, we will be talking to sue decker. they're recommending voting against her because they haven't been more up front on answering questions about climate change >> on a-4, in the annual report, all you have to do is read it. and when i deal with some of these surrogates that are in quotes in charge of, they've got a box to check they haven't seen the company. they don't get into the details. they don't understand the difference in accounting, and

warren lays out the biggest problem we have in the stock market today and that is rising interest rates in terms of values >> let me ask you. you point out these proxy voters charlie munger took aim at the daily journal conference he had a couple months ago. these are basically emperors who are choosing to push their will. >> not only to that, but we have 40 analysts. each one, let's say follows 50 companies. you know, and we have a proxy voting committee we use a microscope on companies, like we had one company in minneapolis where the proxy guys say vote for it they were going to destroy the values the stock has been destroyed since they approved it, because they voted on it they wouldn't listen to our point of view, and we've been following the company now for 25 years. you know, so i have no problem with them saying what they want. as long as the voter, the shareholder, understands how

they don't think and how they're checking a box rather than going into the practical side. becky, that's because i was on the zoning board of a community. me, for 12 years and i kept certain things out and certain things in. but you've got to do the work. and they don't do the work they can't >> you brought up the fed, and what the fed is doing right now with interest rates, with inflation, all of these things are at play, probably the biggest story for the markets right now. what do you want to hear you have your own thoughts on this >> i've been take being the point of view that nominal earnings are going to be quite strong the headline on gdp down 1.5%. but when you look at the net imports which subtract from gdp. it's a robust gdp. but the none nominal is what companies do but every company is worried about supplies companies tell me , can i get it

what price i don't care they're bloating up their inventories. earning is okay. but that's not the issue it's the multiple of earnings. you know, 40 years ago, it was 14 and 7/8 on the ten-year the impact has been a huge tailwind, and now it's a headwind, and that's what the market has to adjust to, and what warren talks about in his annual report, which we all do on certain types of analysis earnings before interest, taxes, depreciation and i looks at cap-ex. so we're going back and the multiple of revenues to buy a stock, looking at a multiple of that number and how do you value it >> what does that mean for the market overall >> i think, you know, with the volatility and the day trading

and the speculation and the mo-mos the market was up, then it was down sharply there was no reason. it turned around sharply thursday afternoon this morning we'll see some bellwether stock. but from my point of view, i look out in the spring of 2023, the european economy should do better, assuming we don't hit the wrong button, and chinese economy is going to start improving. they did something interesting today to kind of pull back on what they're doing in the tech stocks and that's caused a bounce in them but independent of that, i think the market is fairly valued even at 3.5% to 4% on the ten-year. the bigger concern for me is the runoff of the $9 trillion of the fed, and how quickly are they going to run it off. what impact does it have on housing because you have to cool things down. >> that it's only way think can stop this inflation, cool down the demand picture >> there are other ways, but

we'll see. we're back to the 1970s. >> oh, yay >> we did extremely well in the market, but multiples were five times even and not 12 times. >> mario, it is so great to see you in person again. >> this is fantastic >> thank you for joining us, and i hope you'll come back to the studio >> i'll be even willing to look to joe and say hello to him. >> excellent, excellent. when we come back we have much more from right here in omaha. we're going to be talking to berkshire hathaway boardemr mbe sue decker also john rogers of ariel. you're watching "squawk box," than is cnbc

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y welcome back to "squawk box. volatile week. continuing today but not quite as much. bitcoin's down quite a bit as can you see on the rolower righ, but the dow has indicated. nasdaq dealing with a lot, dealing with apple issues, amazon issues, et cetera, this morning after results yesterday making headlines many big tech names are rising in hong kong, trading today. a major chinese newspaper

reporting the communist party may be set to end some of its regulatory crackdown now over big tech and instead use the sector to boost the slowing economy. jd.com, alleybaba. crypto is emerging as a force in the midterms this year, that story when "squawk box" comes right back opportunity is using data to create a competitive advantage. ♪ ♪ it's raising capital that helps companies change the world. it's making complicated financial concepts seem simple. opportunity is making the dream of home ownership a reality... ♪ ♪

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welcome back to "squawk box. a chart on cryptos a check on them, rather. and we've got elon not musk, but let's go to washington where crypto could mean campaign cash and we are joined with more. it's kind of pronounced elon i don't flow y it's kind of pronounced elon i don't flow y know. some people think musk >> i've never had someone with the name pronounced like mine. now we have elon musk, and it's sk jarring to hear someone with the same name as me. >> every fifth word now is on tv

>> to gain influence in washington, you have to get in on the ground revel. for the crypto industry that means investing in the election. there are new pacs that have sprung up. one is the biggest is protect our future it's raised 14 million, bankrolled in large part by sam bakeman fried. they'll plan to spend up to 20 million. and it's backed by anthony scaramucci of course a cnbc contributor in washington, the pac's co-founder, grant mccarty told me he's focussed on getting candidates who are true believers in bitcoin >> this is not a short-term game for us the fight for bitcoin is going to be a marathon, not a sprint 2022 is just the beginning, and we're hoping that, again, their

c this can be a signal in 2024, i think we'll see an orange wave in washington. >> the crypto industry is paying close attention to republican senate candidate josh mandel, who has invested in bitcoin, also shon tell brown. the industry is really looking for races where its money and support could potentially tip the scales back to you. >> this is an angle i hadn't considered, y. w ylan th it doesn't match up left or right with this. both sides seem to have concerns and, and are fans of crypto. it doesn't fit into an easy box that way >> yeah, spabsolutely i think financial freedom pac has been very careful to endorse

two republican as well as two democrat candidates. democrats are kind of split on where they stand on crypto some see it as a big risk. bradshe brad sherman, for example, out of california sees it as a big risk and the message is we'll primary you if you don't sort of agree with the same principles that we do we're willing to get in on that early stage of the election. >> yeah, you really do need to break it down, all the different ramifications for crypto the benefits you obviously could be opening yourself up if you endorse it wholeheartedly i wouldn't like to be a politician in today's word to try to figure out what to do with crypto if all where i thinking about were votes. thanks, ylan > all right, we are live in omaha today. if you are not here in person,

don't worry. cnbc is bringing you exclusive coverage of the entire event tomorrow the questions and answers. you can go to cnbc.com/buffett or the cnbc app. our coverage starts at 9:45 a.m. eastern time warren buffett, charlie munger will be on stage to answer shareholder questions. they do this for a very long time about five hours during the day. we're going to have the pregame show that we've been talking about and the halftime show from 1:00 to 2:00 p.m. leading into the afternoon session. we were talking about jimmy buffett being a special guest here tomorrow. he's going to be with us in the pregame show before the meeting starts we also have a special guest who will be joining us in the halftime show, that's bill murray he's also been a friend of warren buffett's he's going to be here tomorrow and we'll talk to home about how he got to know warren, what they do from time to time, when they

get together what he thinks about investing with some of these things. and this is the first interview he'll be doing since the production of that film he was working on was paused. a lot of other things to talk about with him because he's such an interesting guy, so many things coming up and we'll see. >> i don't know him that well, but from what i know about him, he's like the sweetest, i don't know you know what? nowadays, and especially with, i mean, we know what a total funny, like clown he is. and if you don't have a good sense of humor, who know what is could rub you, i don' i don't k details, hard for me, and even reading some of the previous things >> same. >> even so previous things. >> are you kidding you're going back to 1977 with chevy chase? and chevy chase says there's no hard feeling between them. >> i've been around chevy a

little and there's times when i felt like smacking him, i wouldn't, not smacking him, oh, my god, now i'm, no, i'm not advocating violence, but he can be, you know, he can be difficult. and you get difficult personalities. i would noever smack anyone, oh, my god i'm going to be canceled >> yes, you are. >> it's hard for me to believe he's very loyal, bill is, too, remember first time we met him, he said maybe i'll show up, at 4:00 in the morning when he, out at pebble, and i said no way. and then he came strolling in, because he said he would right? he keeps his promises. he's a good. >> he's a bit of a prankster, but we'll talk. >> he's a prank stir >> he is >> and a legend. one of the most beloved actors that we have, i think. especially, almost cult like >> joe, very quickly

>> yeah. >> you're a card-carrying capitalist, right? >> oh, yeah. i don't have a card, think >> i have one for you here because they are giving these out here this weekend. >> that's theis. >> this is your card carrying capitalist it's got pictures of warren and charlie on the back. there's no disclaimer on this. you can buy these for a dollar here at the door warren wanted them sold. i'll bring one of these home too. >> when you're a capitalist, you don't give them away for free. wfrm when we come back, we'll be talking to berkshire board minimum, sue decker. that's next. "squawk box" will be right bac

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. welcome back to "squawk box," everybody. the nasdaq futures are down about 1.25% this morning that's a drop of 1.25% and probably because of the three big tech stocks that we've opinion watching after quarterly earnings that were announced last night apple didn't offer revenue guidance, and the cfo warned

that the supply constraints could hurt sales by $8 billion those shares down by 1.1%. amazon shares are down sharply, after the company posted its first quarterly loss in seven years, and the sales growth they've seen since 2001. that's a drop of more than 10% on that stock right now. and intel shares are under pressure as well if you want to take a quick look at that, intel shares are trading off by about 4.4%. our next guest knows the tech world very well. sh sue decker is also a berkshire hathaway director, and sue, thanks for being here today. it's really great to see you >> it's a pleasure to be back. it's so exciting to be pacback omaha. >> you see things like this, do you think this is a different environment with rising interest rates? or do you think this is something we'll manage through

>> you know, we've gone from an environment of falling interest rates and low inflation for a long period of time. and anything that is a fast-growing company, where most of their profits are projected to be in the future, and mounting quickly gets discounted at a higher rate when interest rates rise i think it's pretty understandable it's hard to know how long this all lasts, but rising rates is not a good recipe for inflation and growth stocks. >> you've got a really incredible front row seat right now for what's happening with theicall the economy and the consumer you've got a lot of different companies that you're watching and seeing things. where do you think the economy stands right now, just from your vantage point on all of this >> i'm not a good prognosticator about the economy, but i would say that it's, it's an interesting time right now you have a period of inflation picking up

there's no clear sign that that's going to abate because it's really affecting wages. the supply chain issues probably will abate over time they tend to be a little bit more cyclical, but the wage increases are probably more sustainable with the great resignation and a lot of changes in workforce and hybrid. that's one of the big things on the board of directors' agenda these days skpcompanies are tryg to figure out how to recruit and retain workers and a lot of the growth in the last ten years, or good conditions came from more globalization and economics and attractive energy prices and now you have a situation where there's been a real lack of investment in energy since 2014, so there's supply constraints even before the ukraine invasion happened. where that all goes, i'm not sure

companies will get through this and prosper in the long term, but it is a very different environment today than it was two years ago. >> i think you said cyber security is a huge, huge issue right now, facing companies across america >> yeah, i would say in terms of board issues, i think cyber and employee retention are the two issues that have been most significantly increased in terms of the a discussion we have at our boards in the last two or three years. >> what, what do you do on both of those fronts? cyber security's one thing, a pretty intractable problem and employee retention, huge issue, too >> two really different issues the on cyber, it's going to be here, and it's going to increase, and it's just a matter of coming up with detection systems to identify when something has happened and mitigate it and make it a small impact rather than a big impact. it's here to stay. in terms of employees, it's an interesting time a lot of companies are trying to figure out, how do you create an environment in which employees want to say after they've been

working from home for two years, and a lot of companies, that's new to them. and how do you implement it differently in different environment, like i.t. departments in particular are facing a challenge recruiting people if they can't allow people to work from wherever they've moved to during the pandemic it's difficult, but company also figure it out. >> do you think it's flexibility, can you still work at home or do they need to bring them back? >> i think it demands on the business remote models work my own company has been remote since before the pandemic. i think that part of, i think changing employee expectations changing about the level of flexibility they have is something that's here to stay. >> so we were just talking with mario gabelli about calpers and some of the proxy companies that are pushing things there is a proxy vote here at berkshire hathaway their weekend wh where they want to split the

roles. they're pushing it here. but, they've recommended that, here, but they've also recommended voting against you and merritt whitmer, because they want to see more disclosures when it comes to climate change mario's point was there's a lot of disclosure if you actually read the report. why do you think they're targeting you and merrill on this >> starting with that issue, they're targeting us pause we're because we're on the audit committee. and we're responsible for esg disclosures. in the end, that's why i think we were targeted i thi i think the core issue here is not one of substance, but the process of how we disclose and chun case it i think mario is right that berke sli berkshire has been a leader and

so burlington northern and berkshire energy are really the two that matter. when you have more than 50 companies to require disclosure on every one of them with very himm lim limited use of carbon. berkshire energy i think has said net zero emissions by 2050 and down 50% by 2030 from 2005 they're both leading in their industries it really comes back to one of the core philosophies of berkshire. one of the things that's made it so successful is that it's decentralized. it is good for business to become more green. and the businesses are responding in kind it is a little more difficult to parse through it, but it really comes down to a core issue should it be disclosed at the

enterprise level or the business level. it probably does make sense to be reported at the enterprise level. >> just in terms of the sec, they're looking at some of these issues, too. maybe sometimes it's hard to fit in the cookie cutter mold, if the sec orders it. >> the pca is doing a lot of work they've interviewed me, a lot of people, where should the disclosures lie, where should responsibility lie in terms of what subset of the board should be overlooking this. and most companies are either adopting it as part of the audit committee if there is a disclosure requirement and at berkshire, we put it in the committee. but today there are no disclosure requirements. over time, if there is a unanimity on how to disclose it, the audit committee will oversee

that, and of course we will honor that >> can i ask you about social media and twitter in particular. you are someone who understands social media and has gone through these things elon musk making this bid for twitter has captured a lot of people's attention >> it's so fascinating buckle your seat belt. i can't wait to see what he does with it. i wouldn't underestimate him v i have in the past when you look at the tesla i wondered why it was trading where it was but you look at the quarter they just reported and the automotive margins are doing well there's a question of will he be spending as much time and attention on tesla if he's focussed on twitter, but i am interested because when you hook alook at a he's financing it, the debt payments will be $2 billion to

$3 billion, which is a lot of twitter's cash flow, and he's raised some questions about the model of twitter in terms of should it be driven by advertising or subscriptions or both so i'm just super fascinated i can't wait to see what he does >> i want to thank you so much for being with us this week. and really appreciate your time. >> yeah. great to be back in omaha. >> sue decker again, and joe, we'll send it back over to you >> i once spent a week there one friday afternoon coming up, jim cramer cojoins us love everyone. with this morning's quarterly reports and the trading day ahead. and then there's a great line from "unforgiven." i thought i was dead once, and then i realized i was just in nebraska

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posh virtual receptionists. welcome back to "squawk box. the core pce rising. the index measures costs that consumers pay across a wide number of items. and is viewed as a favorite that

inflation gauge. let's get to the new york stock exchange the one thing we can go all over the place with conjecture and speculation about all these other issues, but whether the rubber meets the road and these companies have to report and they disclose things, they got to be accurate, they can try to spin it a little, but not much what did you think of amazon and apple? >> look, i thought that these were quarters, brian, he lowered the boom he was very self-effacing about what amazon did wrong. they have to stick to when their fiscal year ends i spoke with tim cook yesterday, we could not go over, it does not include the future, and when i look at it like that i do believe that apple, if you sell

you're really going to make a real mistake because the poe lit bureau is going to say you have to open. the schism developing in china between xi and the people who help run the government, and i think that xi's going to lose this they're going to open these cities when you open these cities, you have to own apple, just have to. >> you saw that piece in the journal. i was fascinated did i skip a lot of history? i don't flowknow what happened i went to a good jesuit school did you know spare rows in 1958 they tried to get rid of all the spar sparrows >> i know everyone had to carry a flyswatter in the '60s to wipe out every single fly he's taking after mao. mao did not, was not killed by

it, same thing with stalin they died in their bed, which makes me think these guys don't underestimate the power of a dictator however, there are people who could make it so xi does not stay if this continues, this insane lockup continues, then i think there's going to be political change there that we will be shocked by >> we would be shocked we can't even imagine. and in the article, it says he has a mao-like control, where there's no danger right now, but we'll see. that's an important, the party, the congress is going to be interesting to watch people attribute a lot of what's going on now to making sure that ifs smoothly for him >> exactly but i got to tell you, you shut down that country, they do have martial law, but there are a lot of people there who are, when you do that, you're going to have famine. and famine somewhat caused

political change in the world. >> you're talking about marshall dillon law or martial spelled with a t? that's a separate joke >> it was a different, anyway. there but for the grace of god i don't look don't look at scan anyways, jim. we will see you in a couple of minutes. we want to remind you about the new cnbc investing club, and sign up at cnbc.com/club or point your phone at the code there in the screen, and on the screen, and it is going to take you there. when we return, veteran investor john rogers is going to injjoin live from berkshire hathaway meeting. so you call in ibm and red hat to create an open hybrid cloud platform. now data is available anywhere, securely. and your digital transformation is helping find new ways to unlock energy around the world.

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welcome back the omaha where the berkshire hathaway faithful are arriving for annual meeting this weekend. among them the top money manager john rogers who is the chief money investment and ceo of ariel investments, and we have seen the money shifting back to

the investors place, and is this the shifting value right now that some of the high flyers are coming back to earth >> i think that the high flyers will continue to come back to earth and high inflation, and high interest rates, it is difficult for the high flyers to keep the pe multiples as high, and the pe multiple compression is real, and it is going to continue. >> what, if anything, are you doing that is different, and is there anything that is more attractive as the valuations are coming down, or are you sticking to the meat and potatoes and the bread and butter >> well, we are working on the bread and butter, and some of the sectors are hurt. and some of the sports franchises have been hurt, and if you are watching the madison square entertainment, and madison square sports get cheap, and those are areas of pockets of opportunity, and of course, the media stocks are a favorite

area of ours, and we love some of the streaming companies, and what has been happening with in particular paramount global, and extraordinary opportunity with bargain basement prices there. >> and when you say high flyers and they stay there, and i can't help but think of netflix, and paramount is similar, and do you like paramount at these prices or do you like netflix, too? >> we like paramount because they are diversifieded and they have cbs with the franchises and nfl football and ncaa tournaments and all of those things, and they have pluto, which is a extremely successful part of the mainstream advertising-related media, and then you showtime, and it is a total global enterprise, but having the news and the sports and the content that paramount brings is something that netflix cannot compete with. >> we have had a number of the berkshire managers join us, and jim brooks was here talking

about how the consumer demand is strong still, but it has come down from where the height it is from the past few months and so not as strong as pre-pandemic, but you have a strong advantage of looking at consumers being on the board of nike and mcdonald's, and so what is your perspective on the consumer right now? >> i think that the consumer is spending more and more, and from what we are seeing, the people are in the stores and buying, and people are buying online and using digital capability out there to be able to access product, so the economic is really that the economy is very strong, and the consumer is confident, and i do believe it. that is what we are seeing. >> you understand the conundrum of the fed, because they have supply chain issues and trying to fix the inflationary problems of tamping down the demand. and what is the hope that they will do it the right way. >> well, the fed is working so

hard at it, and they do care. they have admitted they were slow to realize that the inflationary pressure would be so severe and not so transitory, and so they will do the right things to tamp it down d and balance it appropriately. >> two of the biggest holdings, madison square garden entertainment, and mattel who changes the way they franchise, and is that why you like the stock? >> mattel has done an extraordinary way of turning themselves around. the ceo is fantastic, and he has delivered everything that he has promised along the way, and cut the cost around the world to cut the cost of manufacturing, and turnaround american girl and continue the growth of barbie and hot wheels, and then build some movie franchises that we will see the benefit of in the next couple of years it is one of my favorite companies, and very, very cheap.

we talked to management, and had a great phone call, and he was confident of how undervalued the security is, and one of the only times since he was ceo. >> and people were so unwilling to spend on to toys during the pandemic, and people were not traveling, and so will the people come back on what they are willing to spend >> people are so diversified and moving to quickly in the digital world, and so much more quickly in mattel in how to make the toys more energetic and fun for today's consumer. >> thank you, john, for being with us, and we know that you are off on this conference that you and mario are holding together. great to see you. >> and you. >> and folks, we will be bringing you front row access to berkshire hathaway's annual meeting, and it is only here, a

it is going to be live on the show. >> and it is amazing, because it has never been done, and never been done before. and no taco bell, becky. i am not surprised. i am not surprised that you barely mentioned that you don't have a razor and immediately people are falling all over themselves delivering razors to you, and i beg and cajole talk about taco bell, and not one person looks like -- >> the morning is not over. it could get there before you walk out. >> i have less than a minute to close the show. but have fun out there, and people are now showing the "unforgiv "unforgiven" and little bill said that, i thought that i was dead, too, and then i realized i was in nebraska. i love the cornhuskers and kansas, and i won'ten call them the flower states. and now, down 133 on the dow, and kind of been there all day,

and 168 on the nasdaq and talked to cramer about amazon and apple and the two big stories in terms of the companies that report the results. you know, you talk about two days, and i have no idea what to expect monday, but have fun, and say hello to warren and charlie, and -- >> i have your card. >> and you have my card. bring that back for me. bring that back for me, and i will carry it. that is going to do it for us, and god speed and have fun, beck. "squawk on the street" is next. >> thank you. good friday morning and welcome to "squawk on the street" i'm carl kwaunt nil la with david faber, and jim cramer is on assignment and apple's supply chain, and hot numbers, and the employment index is the biggest jump in the data set going b