hi, everyone. welcome to "on the money," i'm becky quick. our conversation with the world's greatest investor. warren buffet talks about optimism, his unusual diet and what he hates about his job. >> it is pureeing a kneeing ago and i usually postpone it. >> answers from the man who runs the world's largest gas and oil company. why you are paying too much for car insurance and how to cut your bill and no this isn't a commercial. want some fusun, he is we have the best new travel apps to get you there. "on the money" starts right now. >> this is on the money. your money, your life. your fut now, becky quick.

here is a look at what is making news. a much stronger expected jobs more for the month of february. economy creating 295,000 new jobs last month and the unemployment rate fell to 5.5% wage growth though is slow but the strength in the economy could increase the chances that the federal reserve who raise interest rates. that helps send stocks down in early trading on friday and they continued down later in the day. earlier in the week the nasdaq did something it hasn't done in over 15 years, closing above 5,000 on monday. but it had that number for about a total of 60 minutes before falling opt tuesday open. auto sales rose in february though slightly less than expected. it was at least in part because of bad weather. gm up 4%. ford down 2%. chrysler up 6%. and toyota up 13%. it is the end of an era for ringling brothers barnum & bailey circus. the circus said it will no

longer use elephant acts lie the year 2018. they have been met by protesters with how the elephants are treated. warren buffet turned over berkshire hathaway. itt $360 billion it owns geico, see's candy, burlington northern, has stake in coke whia coca-cola, ibm and stress. we asked how it is doing. >> we are continui make progress, just like we have since fall of 2009. things hit bottom. the whole country was paralyzed for a period of time. but once we started coming back, we kept coming back. i get figures in all kinds of businesses by the day almost. certainly by the week. and most of our businesses are doing more business than they were last year and we are doing more business last year than the

year before. and we had not hit anything like a boom type. but compared to the rest of the world, i mean, the united states is really been leading the world out of what was sort of the recession to end all recessions. >> even though we have been doing better and better and gains have continued to come in, you yourself said that those gains aren distributed evenly. income equality is a growing concern and something that politicians are talking about more and more frequently. how would you fix income in equality. >> i think the best way is through the earned income tax credit. it is a pretty good system for allocating labor and resources. the market system is not going to take care of the bottom 20% of the country. education, helps in all of that, but we have a more and more specialized economy and a lot of people are going to get left way beyond while many people prosper. during the last few years, the stock markets tripled.

corporate percentage of gdp are terrific at the same time that savers are getting nothing on their money and many people are really struggling. so the most beneficial way to keep the market system and not disreport to supply and demand and enable a very rich society to take care of those that don't fit in very well to the society from an economic standpoint, through the earned income tax credit. and we can do it. we have done some of it. you want people to work, that's why it is called eearned income. people like myself will enjoy ridiculous incomes. >> what about raising minimum wage. >> if you raise the minimum wage, and i'm not against it, but it distorts some line -- i mean, if i got a $20 an hour minimum wage, would solve things for people, i would be all for

it. but all it means is that you have a lot more people unemployed. >> about seven years into a ten-year bet that you made with a guy who funds fund to fund for health fund. i thought he would be bet are off putting $1 million in five different hedge funds over that ten years. million ht you would go up dollars in an induks fund. you are way ahead in that bet after se years. how much further ahead are you? >> i think about 40 percentage points. and the money, incidentally, goes clarity. i offered that bet to anybody. i admire that -- the fellow's name is ted, he is a good guy. i admire the fact he put his money where his mouth was. but the rest of the guys didn't. they just checking their 2 and 20. >> hedge funds charge 2% and take 20% of the profit. and index funds, i think the vanguard fund is something like 17 basis points. your point is, paying for

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

do whatever i want. i get to do everyday just exactly what i love doing. and i get to do it with people i love. all my decisions are elective. one thing i don't like is when i have to make a change in management, i have to tell somebody that i don't think -- i think somebody else can do a bet a er job. that is pure agony. i usually postpone it and suck my thumb and do all you kinds of things before i finally carry it out. that's the only unpleasant part of my job. >> you have said that basically, your indict, tastes haven't chand since you were about six years old. >> true. >> you still drink about five coca-colas a day. >> i do. >> you love, and we're not talking about the low sugar soda -- these are full-fledged. >> i get about 700, 750 calories a day from coca-cola. about a quarter of me. you are looking about one quarter coca-cola. >> i think you are the only person i know that i can say that about. i know you love potato sticks.

and i know that you ate strawberry ice cream this morning a the 4:00 a.m. before you came here. >> true. it was good too. >> how? >> i recommend it, becky, if you haven't tried it. >> how do you goat everything you do on a diet like that? that's not something that any doctor would tel is the right way to do things. >> it is a happy diet. besides, i looked up the mortality of people by age and i found out that 6-year-olds died less than any other age group. so i thought i would eat that they eat. >> warren, thank you for joining us. >> thank you. back to the ice cream. >> up. in, we're "on the money." we're all happy to fill her up now that gas is ka cheap. but can we expect the savings to continue in rex tillerson tells us what is up with oil prices. later, you have to have it if you drive a car but with you are probably paying too much. how to lower your auto insurance rates. as we head it break, take a look at how the stock market

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lease an mkc for $349 a month, plus competitive owners and lessees get $1000 bonus cash, only at your lincoln dealer. the price of gas is about a dollar less a gallon than a year ago. a dream for drivers and potential nightmare for oil producers. yet the largest oil and gas company isn't phased p. we sat down with exxon mobil ceo rex tillerson to find out the impact if oil prices fall below $40 and what it means for your money. >> the immediate effect for everyone is an impact on their cash flow. just because you produce the same and get less money for it. i do think though, that the people should be prepared for some more volatility in this market. >> if you have to look out and try figure out what really is going to impact prices, do you think it is this additional production that we have seen in the united states and canada? do you think saudi arabia and

the decision they decide whether to cutn or not? the demand picture. what is the biggest determinent in? >> a combination of all of those. what set this off, last talked back in december, i think i made the observatio observation then that it was supply and demand and year after year, there is another million plus barrels a day coming out of north america. it comes regardless of whether there is a real demand or not. you combine that with a fairly modest demand for the last couple of years due to global economic performance and the two collided and that's what set this off. >> i know it is hard to put your finger on it or predict where prices are going. i know you said volatile. you said we could live with lower prices. you said there is a better shot at prediction than everyone

else. your gut? you know better than anybody else. >> i would be incorrect, and second, i don't want to attract attention from a regulator who thinks i'm trying to influence the price. what i would just say is, where we are operating today, and n this 40 to $50 environment, there remains for things to go below that for a period of time, largely with inventory numbers. going higher to the extent that there are disruptions of supply elsewhere in warren buffet, obviously you know that berkshire hathaway sold a $4 million position in exxon mobil. warren buffet says it is a great company, very well run, but thinks there are better places to enjoy the money. what would you tell investors about the oil money. >> we consider ourselves long-term investor. people that buy our stock, they known it for generations. and i think we are viewed as

stable and we can with stand a lot of things going the wrong direction in our space that our competitors operat a so i think it is a question of, if you want to own this part of the market in your portfolio, we believe we are the best thing to own. >> exxon mobil is largest cap company forever and ever. you watch apple, actually just soar and take off. did you ever think about that, about how big they are in the biggest market? >> no, i never thought about it when we were the biggest, quite frankly. people like to make a lot out of that. certainly not any objective. it is not surprising to me that a product like an apple would come along and race past something that we are a commodity business. we do have dif differentiated products. but there is a steady hold safe, sleep well at night. count on the dividend stock.

and so, we're kind of steady eddie is the way i see >> thanks to rex tillerson. up next, on the money. dor whe when it comes to saving money. why you may be paying too much for car insurance what what can you do about it. later, do you need a

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everyone who drives needs it. most everyone grumbles about it. but most people don't have to pay as much as they are paying right now. we are talking auto insurance p. can you save a lot by doing comparison shopping. sharon epperson is here now with more on how do that. hair hey, sharon. >> how you doing. everyone wants to try save money and it is possible do it if you shop around. there was a survey and the average person pays over $360

because they don't shop around. stick with what they know and don't buy exactly the amount of insurance that they need. >> looking for exactly the amount you need. i guess that's just stuff that takes time. you are saying, do it. >> yeah. look around and see what you need. texas for example, you might pay $1400 on average but can you get something for a little over $1,000. you can save about 30% on your insurance. >> one old axiom that comes to mind is you get what you pay for. if you pay less for insurance, do you have to to worry they won't cover your claim? >> not necessarily. the one thing you need to look at is the deductible. they say i want a lower premium, i want a higher deductible. that's a good way to save on your monthly car insurance as well. but make sure that you can cover that deductible when the time comes. but you can save, you know, 20% or so right there by doing that. the other thing to look at is yeah, discounts. whether you are a good student. a teenage driver, their rates are high.

but if they have a good ak academic record, they could lower their rates by 16%. you would think being married, would that cut my rate. but if you both have a clean driving record, being married, there are studies that show you have fewer accidents so you get a lower rate for this and linking your home and your car both policies, that could be a significant discount as well. >> so comparison shopping is easy. but once you get into the details, maybe trickier. are there hints for telling people how, is there one place you can go to do comparison shopping or do you have to do the leg work yourself? >> going to every site is what a lot of people say is so time consuming. that's why they get frustrated. there are sites you can go to, put in your zip code and do comparison shopping. dmv.org. nerd wallet.com. >> what is nerd wallet? >> a personal finance website. different interesting things on there. other things to consider though are make sure you know what is

going into this rate. and the clean driving record, that is key. that will keep your premium down. you want to know that if you are a younger driver and you have less experience you will pay more. and keep in mind that how much you use that car, is also going to impact how much you pay in car insurance. one thing people don't talk about and i know i love to talk about credit scores, it does in terms of car insurance, they look at credit history, credit score and that determines rates as well. >> and if it is proved over time, point that out to your car insurance. >> exactly. >> sharon, thank you. >> sure. >> up next, a look at the week ahead. pack your bags for t n get away wp we have the apps to help you plan your escape to the .wp we have the apps to help you p wp we havee have the

for more on our show and guests, go to our website. and can you follow us on twitter. here are the stories that coming up that may impact your money this week. job openings for january. on wednesday, the energy department releasing its petroleum status report. that's possible indicator of poil prices at the pump. thursday, brings the closely watched retail sales numbers for february. on friday, the producer index for february is out. also on friday, 22nd annual

south by southwest music film and interactive festival kicks off, of course, in austin, texas. if you've got cabin fever and are just aching to get away from the cold and snow, you might be anxious to plan your next trip. can you travel better or cheaper with the apps out there? to separate the good from the bad and ugly is amy farley. news editor an "travel & leisure" magazine. thanks for being here. >> thank for having me on. >> how are these different from things in past, like priceline. >> one thing i love, it is not as new as up and coming but it is a website called adiaoso. it is so flexible. you used knowing where you are going and when your dates are. adioso says, if you are more flexible, he can can find you great rates. if you want to go to europe and you want to be gone for seven days, you can search under those

parameters and it will tell you when to go and where to go for the lowest price. >> what do you like from adioso. >> hotelpower, is really great, tore people looking for discounts in luxury hotels. it collects deals around the web that only usually travel advisers see. so something like, three flights for the price of two at a luxury hotel. because luxury hotels don't like to be seen discounting on on-line web sites. but they will if they can disguise it. so pay $50 for a membership and then get discounts. >> interesting. what are some of the hottest travel trends, best places to go, best places to eat. >> right now, what everybody is talking about, is cuba, obviously. what is interesting about cuba is that you can go but still it is hard to get there. there is a website called cheap air which now lets you book flights to cuba. of course you have to travel through a different country like mexico to get there.

but can you also, if you want, experience that gets at the cultural heart of cuba, go with a tour operator and charter flights from the u.s. cuba is definitely on everybody's minds. myanmar is a big deal as well. all about going to the areas that used to be no-go zones. >> one of the first people from our culture that gets go there. >> exactly. myanmar doesn't have many hotel rooms right now. look at river cruises. there are companies coming in and cruising the rivers. great way to experience a country and stay in a really nice place. >> we all have been watching oil prices, gas prices dropping significantly. some people assume that's cheaper fares when it comes to airlines. >> yeah. that's not going to happen. >> oh. >> they are not going to pass the prices down to us. what we see happening that is very interesting is a couple of european carriers that are low-cost and now flying into the u.s. they are offering extraordinarily cheap rates to europe. usually we are paying upwards of $1,000 to get to europe from the u.s. right now there is an airline

that will take you into iceland. but then from iceland you can connect to the rest of europe. get to iceland for 4 or $500 on wow air. >> there is another airline called norwegian air, expanding throughout the u.s. to the legacy carriers in the u.s. but they will offer you a flight to london for $600. that's unheard of on most carriers. >> any last minute tips to book right at the last minute. >> if you go to expedia or orbitz and look for airfare and hotel packages, there are great rates. hotel tonight, last minute hotel booking site. and they offer deep discounts, 48 hours, 24 hours in advance. and i also would recommend, again, back to adioso and using flexibility to your advantage. >> thank you so much for joining us. >> thank for having me on. >> that's our show for today. i'm becky quick. thanks for being here with us. next week, micro housing. will apartments be the next big thing in real estate?

each week, keep it right here, we're "on the money." here, we're "on the money." se. i've been driving a lincoln since long before anybody paid me to drive one. i didn't do it to be cool. i didn't do it to make a statement. i just liked it. lease an mkc for $349 a month, plus competitive owners and lessees get $1000 bonus cash, only at your lincoln dealer.

remembering fallen philadelphia police officer, robert wilson. we'll bring you the emotional interview with his family, straight ahead. and later today, hundreds of volunteers will continue to search for a missing teenager from delaware county. coming up, details from police about his disappearance. old man winter is slowly releasing his grip on our area as we continue a weekend warm-up, of sorts. how long will it last? the answer in the nbc 10 first alert forecast. good morning. this is nbc 10 news today. i'm rosemary connors. it's 5:30 on this sunday. meteorologist michelle