if it's right in at berkshire and will add substantially to berkshire going forward.cision,would which seem to be doing very well -- revenue has grown fivefold the last 13 years, the ceo seems to have been very well at the helm for the last 13 years. why would they want to sell now? sonali: right now they have a large exposure to the energy market and prices have been really depressed. they are trading at about 241 in december. they have plunged and people are thinking with berkshire they can weather the storm a little better. this way they can make the investments in energy, and as you know, everybody is looking at more investments they need to make. public shareholders might not be so privy. there is one more thing i want to point out. from a year ago, the premium that buffett is offering is only about two dollars more than where the stock was trading a year ago. shareholders still have to approve the deal and they might not think this is enough. betty: they may not. larry, what do you make of the fact that it seems like it was todd combs who brought this deal to bu

it's berkshire's biggest deal ever. it should be a familiar name to you if you watched the program on friday. it was a pick by our market monitor guest. and today, on the deal news, precision cast parts spiked 19%. class-a shares of berkshire, well they fell just a little bit as you see there. >> >> this deal seems to be emblematic of what's widely known as the buffett way. even for warren buffett, this is big. what's more, the deal to buy precision cast parts valued at more than $37 billion, also keeps berkshire hathaway moving beyond its original base in the insurance business. in 2010 buffett landed burlington northern santa fe railroad in what is now his second biggest deal, for about $26 billion. in 2013, he bought half of the ketchup maker heinz for about $12 billion. this year heinz merged with kraft to form the world's fifth largest food and beverage company. but buffet admits his, quote, big game hunting, is on hold now for awhile. >> this takes us out of the market but we'll probably be buying a few small thin

berkshire reported second quarter earnings fell 37% and berkshire shares, the more expensive ones closedy at $215,462 but they are down this year by 5%. as for precision cast parts those shares closing higher friday but they are down more dramatically this year 20%. dagen: berkshire $143. if you can't afford those shares, you could do it that way. or just watch, just watch from the sidelines. investors will look at more earnings this week including fresh numbers on the health of the retail industry. nicole petallides has a preview in economic and earnings. nicole: earnings season mostly over but we will hear from familiar names, shake shack after the closing bell up 200% for the ipo in late january. of the highs recently people lining up at the stores to get those burgers and we will get results from retailers ali baba, macy's wednesday, coles, nordstrom and they later, j.c. penney reported numbers on friday, that is very key, could be market-moving and as for economic news reports on second quarter productivity tomorrow, retail sales out there is a. don't forget what we saw in june, to

noah covers berkshire hathaway. of why it appealed to warren buffett, why he was willing to pay a 21% premium to friday's closing price. noah: that is a great question. you have to look at a couple of things. this is a classic berkshire-buffet acquisition. it has big margins. it is a company that makes a specialized product, which means it does not have a lot of competition. it has one of those moats buffett looks for in a business. you hit the nail on the head in the intro. buffett has been making this effort over years to build his company into something different from the insurance, stockpicking driven enterprise he is identified with. over the last couple of years, he has built the energy utility business. they bought a number of other more industrial type businesses and built that part of their balance sheet. stephanie: by most, you mean businesses that have no real competition or none within an arm's reach? noah: that is the idea. precision castparts makes turbine blades, they make rivets. my understanding is

berkshire after buffett tells us what it means for his legacy.ton will roll one of the biggest policy proposals for her campaign this afternoon. can she rein in the ever-growing cost of going to college? all that incoming -- and more coming up. low interest rates are doing their job. that is the assessment from stanley fischer. the zero interest rate era could end as soon as next month at the next meeting of the central bank. he spoke exclusively in an interview with tom keene. stanley: low interest rates are designed to help the recovery of the economy. in terms of employment, which is what really matters, they have done that very well. five, andom 10 to that is what they are intended to do. they are also intended to help investment. we would be happier if we saw more physical investment and financial investment probably, andthey are doing their job the fed has handled this very well. i can say that because i have only joined lately. let's get to this phrase which i ascribe to you, alter economy. i saw the physical force that you put into that p

the biggest takeover in berkshire history is in the cards.on dowdy stack by. >> berkshire hathaway in a deal to buy precision castparts. the deal may be worth $30 billion. the cap is about $27 billion as of friday but the largest purchase berkshire has made is the 26 million takeover in 2010 of the stake in the burling santa fe railroad. it's one of the largest owners of precision. and precision castparts makes parts like nuts bolts, fasteners for aerospace companies like boeing and airbus. that industry accounts for roughly 70% of annual says. precision also makes parts for gas turbines and power and industrial companies. and $10 billion in revenue in the latest fiscal year but struggled by demand. and last year, the forecasts down 29% since june of last year. the stock is also in the s&p 500 by nearly 30% over the past five years. berkshire has also lined the index but by a smaller percentage. to buy companies such as israeli tool maker iz car. and berkshire reporting second quarter earnings late friday, falling 37% on decline on investment

it's berkshire hathaway out there. there's plent/of other names you could downgrade. >> big down day for the refiners. the one area of the energy trade that is loving the collapse in crude oil. the entire space was on fire. tesoro, for instance hitting a year-to-date high, valero soaring, american petroleum rallying more than 4%. beakers, you said this is the place to be. >> it is. right? when you're looking at the two different types of oils, you have brent oil which is your world price and then wti which is your u.s. price. and wti has been down much, much more than brent, and that's because we know we have this shale revolution going on. these guys are making the product. the products are actually doing much better than oil is. so the spreads are enormous. the one thing i would say you're going to start tote goi get int seasonal maintenance period. also the end of the driving season in the u.s. you may see some names in decline. i'm not saying short but take off at least a third as these things go higher. >> do thes

matt: what does berkshire hathaway become?, i thought of it as mutual fund that took stakes in brands that warren buffett liked and held them for a long time. now they have kind of become this industrial conglomerate. meyer: i think that is a good way to describe it. in the past, you had berkshire hathaway using money that was similarly there because of the insurance business. theyhey were smalling -- were buying small and midsized businesses. now they are getting cash, the product of a generation of its businesses, using those to make acquisitions. fundamentally what they are is a thatomerate of businesses earn or generate cash and that cash is used to buy more businesses. it is absolutely a conglomerate. matt: it is interesting, because we used to look at buffets successor choices and he wanted great stewards. now it looks like it will be great stewards of businesses. meyer: when you have $20 billion worth of capital, does it go to the stock i or two current businesses to invest or two more acquisition?i think you will see s

let's talk about berkshire hathaway. brookshire making a big purchase -- berkshire making a big purchase. this is berkshire's cash pile, about $6.6 billion in cash. it is borrowing about $10 billion in cash. this is a really bad drawing. the bar gives you an idea. roughly the same as it was in the third quarter of 2013. berkshire hathaway has a lot of cash businesses. cash flow has been pretty much study above $50 billion since -- ady above $50 billion since last year. a successor would deal less with, what do i do about the cash, more about improving operations. joe: warren buffett is removing one of his problems, taking away a potential successor's problems. he can just focus on running the company. i want to bring in our guest, a chief economist in toronto. thank you for joining us. thet: thanks for insight. joe: you saw the chart. one of the things people are talking about is warren buffett is transforming his company from a financial company to a manufacturing company. do you think that's a good bet? -- do you think

berkshire hathaway is roughly sitting on $67 billion in cash. warren buffett once said that he feels comfortable to have a cushion of 20 billion. that gave them some room to not make this big acquisition -- to now make this big acquisition. he also mentioned in an interview on monday that he is probably not going to go after big firms very soon. he basically mentioned it will take at least 12 months to reload before we might see another fake acquisition for berkshire hathaway. sarah: all right, i would like to have a fraction of that little cushion. thank you very much. monika: the recession in russia has deepened over the past few months. economic output dropped by 5% in three months to the end of june, compared to the same period last year. reporter: russia's economy is heavily dependent on exports of oil and natural gas. they account for nearly 70% of the country's foreign trade and a significant proportion of the governments revenues. but the cost of crude fell dramatically at the end of last year and has yet to recover. declining oil revenu

berkshire hathaway is roughly sitting on $67 billion in cash. warren buffett once said that he feels comfortable to have a cushion of 20 billion. that gave them some room to not make this big acquisition -- to now make this big acquisition. he also mentioned in an interview on monday that he is probably not going to go after big firms very soon. he basically mentioned it will take at least 12 months to reload before we might see another fake acquisition for berkshire hathaway. sarah: all right, i would like to have a fraction of that little cushion. thank you very much. monika: the recession in russia has deepened over the past few months. economic output dropped by 5% in three months to the end of june, compared to the same period last year. reporter: russia's economy is heavily dependent on exports of oil and natural gas. they account for nearly 70% of the country's foreign trade and a significant proportion of the governments revenues. but the cost of crude fell dramatically at the end of last year and has yet to recover. declining oil revenu

berkshire hathaway in a massive transaction. >> this is a deal. you looking at it is happening. >> yes, it is. buying precision cast. >> if are you a pcp shareholder, congratulations, it's been a good morning. it's a huge company, 70% of the revenue is in the aerospace business. in the press release, here's what they have had to say. >> i've admired it for food reason, it is the supplier of the choice for the aerospace industry, really warren buffet confirming not only a deal but saying this is effectively a bullish bet. >> by the way a todd combs investment. i don't know if you know, two investors the hair apparents there if hair apparents on the investment side. he made one of the original investments in the company a couple years ago. they did own 3% of the company. now they own 100% of the company. in the last hour, the ting so interesting to me about this particular company is how inquisitive it has been and how much capital it has spent on a dozen different deals. they keep making deals. they keep talking about wanting to make more deals. no

berkshire hathaway buying precision cast parts. warren buffett had to say about the deal. >> and oil sliding. find out if there's a bottom in sight. >> twitter bouncing back from lows today. we'll tell you how you should there b playing that stock of it lost a quarter of its dvalue. >> stocks kicking off on rally mode. joining us head of north america economics and the managing director at wells fargo securities. you guys have an eye on the markets and the security. was that it, the correction last week, back higher for stocks? >> it feels like it today, but i don't know this we're entirely done. the economic outlook is far from certain. and we're going into a fed rate hike in a soft economy. i think we have more volatility through the month of august. >> do you share that kind of caution as you look at the bounceback today? >> i'm not an optimist but i think the bounceback is telling us that we're on a 3% growth path and they will be ready to move in september. those are the kinds of things we want in the median term. >> i think y

are we looking at a new berkshire hathaway? berkshire hathaway is changing in a way that buffett has talked about over the last couple of years, moving from the mutual fund model, the stockpicking model, to having these large conglomerate subsidiaries and being based on heavy industry. brendan: walk me through this pic in particular. why precision castparts? michael: this company makes about 2.7 billion dollars in operating income before taxes, billion on that seems like reasonable cash flow. it has consistent, has been growing through acquisitions, it has high barriers to entry. he is potentially going to use up half of berkshire hathaway's cash to use this, -- to do this, but he does not have many competitors. what competitors does he have, three? michael: and the competitors have been buying up a lot of the smaller ones. they do with the largest aerospace company -- boeing, it airbus. this is definitely in buffett wheelhouse in terms of the type of company he looks for. brendan: and this is a bet on , a company of air travel

classica perfect berkshire hathaway acquisition. there is no competitor.ry to go about filling the orders for boeing -- dreamliner is7 inth about $1.5 million revenue to precision castparts prefinished airfoils, things were jet engines about turbines, and the oil and gas industry. >> there is no across the street preview you are the head of the airline visibly came along and said would you like the best second-besthe product? you cannot take the lower-pric.d matt: he dollars of 20% of the last year. of the revenue overseas. it is getting more expensive to produce those to hear -- those things here. the dollar gets stronger. >> one of the reasons this is such a classic trackway transaction is the ceo could say this is a perfect acquisition for the firm because our employees will be able to continue doing what they do so well. unlike the other types of acquisitions we have the around the marketplace. even those which warren buffett has participated in, those were transactions were there was a sharp consolidation. pimm: warren buffett has in a sense change th

because i want to talk about berkshire hathaway its cash pile. berkshire making a big purchase.his is berkshire's cash pile, about $6.6 billion in cash. it is using $23 billion in cash and borrowing about $10 billion a purchase. that would leave it with about $43.5 billion. this is a really bad drawing. the bar gives you an idea. roughly the same as it was in the third quarter of 2013. berkshire generates a lot of cash from its this process, and cash flow has been pretty much steady above $50 billion since the second quarter last year. this is one of the biggest ceo can face in this cheap money environment, so a successor would deal less with what do i do about the cash, more about improving operations. joe: warren buffett is removing the cash, solving one of his problems, and also taking away a potential successor's problems. he can just focus on running the company. scarlet: i like the way you put that. joe: ok i want to bring in our , guest, a chief economist in toronto. david, thank you for joining us. invite.hanks for the joe: you saw the chart. one of the things people are

berkshire once held a large position in the u.s.il refiner but shed nearly two-thirds of it last year when it swapped shares of a chemical business that folded into its ubisol unit. it let the company disclose information confidentially so it can quietly buy a large amount of stocks. they're up by 1%. >> the italian firm eni is trading higher after finding a hughes gas field in the mediterranean. 30 trillion feet of gas spanning 60 square miles. the energy giant said the discovery will kept egypt's energy needs in the coming years. >>> and the rosneft has come in at 134 billion rubles. 20% year over year. the stock slightly lower in trade, but up by 6.6% in the last three months. >>> still to come on "worldwide exchange," bank of new york mellon is scrambling to fix a glitch in funds for more than a week. more on that story coming up. before earning enough cash back from bank of america to buy a new gym bag. before earning 1% cash back everywhere, every time and 2% back at the grocery store. even before he got 3% back on gas. kenny

berkshire is one of the largest. a deal would extend buffett's investment into the sector which contributes to the berkshire line. you see 17.3%. >>> the berkshire hathaway second quarter profit, 47% on declining investment and underwriting loss on insurance business. operating profit 10% below analysts' forecasts. revenue rose 3% while the book value for share was 2%. now berkshire's b sales were 1.5%. you see down a similar amount in germany. i'm kind of interested in this deal with precision, though. the timing is very interesting because you're looking at the dow transport index which is a basket of auto/airline stocks. trading territory down about 11% from the highs in 2013. but clearly, this is an opportunity. >> i agree. this is stronger not just for u.s. gdp growth, but global gdp growth. the kind of thing that this company is exposed to he's going for what may give the rest of us a little bit of confidence. the other the factor on the scale which has slightly disappointed me. i haven't realized -- i wouldn't

this would be the second-biggest deal ever for berkshire hathaway.going to be 85 at the end of this month but he's not shirking away from completely transforming what was focused on insurance and stockpicking into more of something approximating an industrial conglomerate. jonathan: that's the interesting part of the story. it is not so much the price of the company. it is what the company actually does. talk to me about that and how it could transform berkshire hathaway. elliott: i'm glad you asked. it is quite complicated stuff. advanced engineering technology, helps make components for the aerospace industry, jet engines, and also pipes for the oil and gas industry. i suppose in that sense it is a typical buffet play, a long-standing company, 66 years old, about $10 billion worth of revenues. it has the bluest of blue chips among its customers. if you look at the supply chain, you have to squint on your screen. u.s.al electric, government, rolls-royce, boeing, airbus, all of these giants of global industry among its customers. this kind of present

the question is was this the right deal for berkshire hathaway? the talk on the street is how berkshire hathaway, the driver for its growth was stock picking and the company acts like a mutual fund. it is turning toward the slow-growing cap-ex intensive businesses, what will that do for the growth of berkshire stock overall? >> he will be 85 this month. big deal for warren buffet. the biggest of his career, the average investor, anything. >> the investor should be impressed with this. not only is warren buffett going to be 85 years young but investing in cyclical companies suggesting the sluggish growth we have been talking about all morning may accelerate and improved over the next 12 to 18 months. cyclical industries do better when economic growth improves. one thing we have learned over 20 years never bet against warren buffet. sandra: oil prices searching for direction for the morning and the year, prices are not nearly 20%. is it time to buy oil? that is a question. we will talk about it next. ♪ ♪ ♪ get excited for the 1989 world tour with ex

but it's a very different beast than berkshire hathaway.ry page says the goal isn't to make alphabetic consumer brand. what is it? cory: i think the consumer brand might be cars were google search and the consumer brand might be android phones or the consumer brand might be nest cameras and thermostats. but i think they recognize they might need more brands if they're going to grow the business. it such an incredibly large business. we all take inspiration some way from warren buffett and from his wallet. i think these guys are very different kind of business. they want to create stuff and invent stuff and sell it for more than a cost. a,k: you mentioned risk for is this move going to give her the discipline that she wants? paul: it's one step. the first step was to weeks ago when they announced their results, she got on the call and was trying to calm investors and give them some confidence that the company is focused on expense growth, will manage the expense growth. investors walked away saying a new sheriff is in town here and ruth will

this is now an industrial play if you want to get into berkshire hathaway.l price, you think may be eating not want to go into machinery linked to that. this is a 10 year or 20 year review? elliott: decades long is one .uote we have got as you said, traditionally for the years warren buffett has been in charge of berkshire hathaway, it has been focused on insurance and stockpicking. over the last few years, this acquisition or an israeli company, they've been shifting towards a heavy industry model. these are big bets, they pay off big over the long-term. investors do not seem to mind. such a move.ome not least because when we had results from berkshire hathaway friday, missing estimates because of more claims than usual in the insurance division. manus: this is the longer-term play you mentioned. buffett has already taken more in dividends from the railroad business than he paid in cash to complete the deal. he took the rest of bnsf. it's about long-term income. that is what many people buy that stock for, even though it is expensive. elliott: what warren b

that's a big problem for berkshire. it's public.it every time he's on cnbc, but in reality, that's a real clunker, in my view, and walmart is under attack from amazon and doesn't seem to have any good answers. and coca-cola is on the wrong side of this whole trend toward organic, natural, noncarbonated type of drinks that the millennials want. there's some leaking motes there. >> yeah. back to the point about energy for a moment. i know one of your books focuses on a warren buffett successor. warren buffett turned 85 years old this weekend. obviously this is always on the mind of investors. the head of berkshire hathaway is one of the prospects. it is interesting to see buffett add to his energy holdings. >> although greg probably wasn't involved in this, but he does run the utility business, which is a big and growing business, and buffett loves it because he can put a lot of capital to work and earn a very consistent regulated return so long as they keep up to snuff with the regulators. greg is an important guy. i don't think he i

why berkshire hathaway is --hting christian vision precision castparts.interactive not performing as well as the competitors. and has one of the most popular games ever in grand theft auto, but is that enough? is a time to bet on brazil? the country is ailing with soaring inflation, stifling interest rate of the political crisis. falling, on deals rising. some investors are betting the worst is just about over. a global market strategist joins us. also with us today, julia light till who covers brazil. ask about the risk involved in this. it is certainly a risky proposition, even if you think it is a good one. >> absolutely. i think the risk is high and things could very well get worse before they get better. there is a lot of uncertainty. first and foremost it is political. the president has lost a very important ally in the congress. it will not be winning him back anytime soon with a percent unpopularity rating. very difficult position to be in the economy in deep recession. high inflation, 9.5% inflation. very low political capital to have the bandwid

. >> investigators accuse the ymca berkshire center of gross incompetence, negligence and misconduct. shimell joins us live from the center. >> what investigators tell you? >> reporter: you know, the ymca in reading said they were the ones that actually called the state and let them know they accidentally left a child out here and say while they know it was the right thing to do it was pretty costly. the signs are everywhere in the ymca day care in and around reading. stop and count the kids. but pennsylvania human services investigators tell nbc 10 it didn't happen july 27th with a little 3-year-old boy at the ymca berkshire child care center in wyomissing. >> one child was left unattended for approximately 15 to 20 minutes and the staff who were charged with caring for this child did not realize that the child was not with their group. >> reporter: he was found safe in the unfenced yard outside the day care that is bordered by two busy streets. >> in an area that is not and has not ever been measured or inspected as an outdoor play space for children. >> we did suffer for it right f

news that berkshire hathaway is buying precision parts. the biggest deal warren buffett has ever made helping market sentiment and the rebound in oil is helping the broader market as well. we'll discuss where investors should believe in this rally today. >>> and someone investors believe a lot. jeremy siegel calling for dow 20,000, sounding a cautious note despite the big rally. find out why. exclusive interview with him coming up. and can we get to his target? >> twitter, by the way, have you seen that? up 8.5% right now, popping on news of more insider buying. plus this partnership with the company announced this morning with the nfl. is this the comeback that the beaten-down stock has been waiting for? we have both sides of that -- we're bringing back an analyst we had on last week who was skeptical about twitter. >> shares hovering around the $30 a share mark. and shake shack will report its latest earnings report. it's the third time reporting since going public. the first two reports missed wall street estimates. we'll bring you the

there are 80 businesses underneath the berkshire umbrella.y you own businesses like those. >>> and billionaire businessman donald trump with as many hits as misses some say at last night's record setting debate. were business leaders impressed with what they heard from trump or fellow republicans? we have the ceo critique coming in. three of them on "countdown to the closing bell" together. stay tuned. ♪ ♪ liz: singed, seared and soaring. >> the other candidates got opportunities to explain what they would do. trump, all he did was defend himself. i went into the debate liking trump, i still like him. i still think he makes the other candidates look weak. and, but i would have liked to have heard more about what he would do if he was president -- liz: well, exactly. >> than the silly questions. >> it's tough in a format like that with so many people on stage and fox doing the best possible job, 24 million people tuned in to see this. david see get, looking at exactly what the opportunity could really be, i guess let me shift to barry sloan. y

berkshire's new pursuit.said to the close to buying decision car parts for close to $1 billion, one of his biggest deals ever. they are just three of the things i'll be talking about through the next 60 minutes. ftse futures in the green. dax futures up 0.5%. will it be a higher open? let's get the market open with caroline hyde. caroline: two days of a selloff on the stoxx 600. we are likely to see stocks get that nudge higher, shrugging off the data we saw out of china over the weekend. exports down more than 8%. we are seeing worsening producer prices, but still m&a speculation in china, speculation of more stimulus to come. it might be helping feed into the ftse 100. cac 40 up 0.5%. we will wait for the ase in greece to open. will we get that deal signed off today for 86 billion euros bailout package? can the imf, ecb, european commission, and european stability mechanism managed to

berkshire hathaway agreed to buy precision cast parts. the price a little more than $37 billion, most of that cash. earlier we talked to a partner at gardner russo, his firm owns almost $1.5 billion of berkshire shares. the cash flow is how steady it should be. they have an order backlog they can map out, probably for 15 years. yes, the dollar makes a difference, but when you are placing order for an airline, they probably will end up going the wing because of the certainty it is the best in the industry. matt: the price is a 21% premium to the closing price friday, but the stock had fallen almost 20% of the past 12 months. another deal, under armour, expanding the relationship with the nba. in a multiyear deal they will be the title partner of the nba draft and presenting partner of the leak youth basketball program and will team with the nba to launch a fitness mobile app. the deal will let under armour placed logo on some merchandise. morgan stanley says congress will probably come to the aid of puerto rico and provide the island acces

berkshire hathaway has made it most advocate energy investment years.kshire has amassed a $4.5 billion stake in the largest oil refiner in the u.s., phillips the six. the s&p energy -- phillips 66. the s&p energy index is up. turned 85 buffett yesterday. chinese a new e-commerce site that is winning over investors. the hedge funds have boosted their ownership in the site by 18% in june versus 1.2% in the third quarter last year. meanwhile, they cut alibaba by more than one third in the same timeframe. toy have a similar business amazon and are predicted to grow at a rapid pace. joining us is gilbert, a tech analyst with web push securities. this is about growth projections as well as business model, isn't it? gilbert: that is right, alibaba is now growing at half the rate of jd. njd is traded on the business exchange -- and jd is straight on the business exchange. the is interesting about business model is comparing it aw to 10 years ago, it had marketplace business. it did not sell directly to consumers. and amazon was a lot smaller and sold directly t

matt: google wants to be the berkshire hathaway of the tech world. it is reorganizing into a holding company called alphabet. alphabet subsidiary will have its own ceo, and maybe its own letter, a structure similar to berkshire hathaway. larry page will be the ceo of alphabet. be headtime deputy will of the google search engine. he has only been working for 10 years. this guy's career has shot. he is young. he only came out of -- erik: there is no question because he is going to be running google inc.. not many outside the goal universe know much about send our pitch i -- about soon. p pichai.about sundar that was lower than the average economist estimate, but the first positive number in nearly one year. it is being called a new front in cybercrime. authorities have broken up and insider-trading ring that relied on computer hangers -- computer hackers. nine people have been identified in the conspiracy. five have been arrested. intoials say they broke the servers of prnewswire, market wire, and business wire. the international space station, the iss

is the berkshire comparison a fair or accurate one, josh?you know, brian, google itself is making that comparison, but i think you're right to ask whether it's a fair comparison. listen, we know google's founders are very much long-term admirers of the oracle of omaha. in the company's s1 in 2000, larry page and sergei said they'd write annual letters to shareholders and that the decision was inspired by warren buffett's essays in his annual reports. google is radically restructuring itself in ways that it says resemble berkshire hath away, specifically the company creating a public holding company called alphabet which includes a portfolio of separately run businesses, so calico, nest, fiber, google x and the company's investment arms. it's similar to berkshire in that respect, a holding company with a wide array of different businesses, but there's also some really important differences and most obviously berkshire is truly diversified so it's everything from insurance companies to railroads, but google, remember, is first and foremost an

berkshire doesn't report every segelment each quarter.t. still a lot of answers to get from google. i do believe we have roger mcnamamee back with us. roger, can you hear us? >> i can indeed. it's a lovely morning. how are you? >> we are doing great, thanks. your thoughts on this google move to have a parent company called alphabet and separated into two baskets. >> well, first of all, the really important thing for investors here is that this may lead to separate tracking stocks for the various businesses inside goggle, which would be a sensible move for everyone. and if you look at this, simply breaking things out, providing more transparency has some value but i think it's quite limited. but in the long run as the advertising-based internet businesses, which is to say search and youtube and all, begin to slow down they're going to have very different investment characteristics in the rest of google. they're going to be more than one kind of investor that's going to own google. you're going to see that value-oriented and growth at a rea

berkshire once held a large position in the u.s. oil refinery, sold nearly two-thirds of its sales last year. berkshire did mention phillips 66 in its stock holdingers. if you quietly buy a large amount of stock, phillips 66, if we have the chart report up here, you can see up 1% in frankfurt. >>> coming up on "worldwide exchange," a sea is of yellow, anti-government protesters take the streets but the prime minister stands defiant. more details coming up. >>> and ashley madison hackers release details about who wanted to break it off with the infidelity website. >>> and the kremlin released vladimir putin getting a sweat on in the gym. find out how many he can lift after this break. this just in: 50 million customers' data was not compromised this morning in a security breach that didn't happen. wall street. not rattled. at all. no. not at all. not at all. i mean, look at the day. sir. sir. what went right? what went right? everything. thank you. with threat intelligence, behavioral analytics, and 6000 experts, ibm security will he

how can he ensure berkshire hathaway? doug: moore used to buy gazelle and she priced companies that he price is whatys you pay, value is what you get. beginning about one decade ago, he began to change the nature of his portfolio, paid up for a bunch of consumer brand companies, paid up recently for precision cash hearts and record high multiples to evita and earnings and customary. i did think that berkshire hathaway, which has a substantial premium to book value of about 40%, is basically evolving into the u.s. global gdp company. the biggest problem is the large numbers. it is just increasingly -- he is like apple. it is time for apple, subject you know a lot more about than i did, it is increasingly hard for apple and berkshire to move the needle because by nature of their share successes. olivia: we will leave it there. that kass, president of seabreeze partners joining us from tampa. thank you for joining us. corey: number two, we are watching oil slump. heading for the longest run of weekly declines in almost 30 ye

berkshire may see a pickup in the third quarter. inerger is expected to bring $7 billion.witter could see a shakeup in the boardroom once it finds a new ceo. the company is considering adding more diversity, such as appointing from minority groups and taking experience from adjacent industries. three of the board are former twitter ceo's, something that may make life tricky for the new chief executive. chinese car booking service d kuaidi, has joined investors. it is seen as uber's rival in china and has raised $2 billion in funding. the company is looking to expand its shuttle bus and car pulling services. that is a check of the top corporate stories this hour. i'm zeb eckert. angie: gold's recent meltdown cost russia and china billions of dollars in just three weeks as prices hit a five-year low. we've got bloomberg intelligence asian metals mining analyst yi zhu with us in the studio. explain the impact of gold kind of dulling things for russia and china. >> the gold prices had fallen more than 60% since the year high. we think there are four factors behind that. first

. >>> what do berkshire hathaway and google have in common? one analyst says a lot. a lot more than you think. he joins us -- next. >>> halfway report is sponsored by fidelity investments. innovative ideas by serious investors. guaranteed. did you see it? in one second, he made a trade, we looked for the best price, and the trade went through. do the other guys guarantee that? didn't think so. open an account and find more of the expertise you need to be a better investor. hello. i am here to offer sophisticated investing strategies. my technology can help you choose the right portfolio. monitor it. and automatically rebalance it. all without charging advisory fees, account service fees or commissions. that may be hard to compute. but i'm a computer. so trust me. it computes. say hello at intelligent.schwab.com >>> we are back and following its big restructuring announcement, our next guest says google is now the berkshire hearthway of the internet and could rally big time. scott devet is an analyst joins us on the phone for call of the day. scott, thanks for jumping

it's a lot easier at berkshire-hathaway when you're dealing with companies like fruit of the loom and net jets or insurance. but in a company such as alphabet or google, you're dealing with very high-tech, very capital intensive and in some cases certainly deintensive businesses where innovation is the key and not simply running the business for cash flow. >> finally, does this protect good until any way from the challenges to its primacy, especially in europe, regulatory challenges, by reorganizing itself, does it become less vulnerable? >> i don't think so. google's core business, what's going to still be called google inc., is the primary business where they're being challenged by anti-trust authorities in europe. that will be equally vulnerable under this structure as well as the old structure. so google still has to deal with potential anti-trust issues, whether they're trying to put other competitors in their business out of business, and this structure really doesn't help them at all. >> ifill: professor david yoffie of the harvard business school, thanks for helping us out. >>

berkshire is taking advantage of the lower commodities.om: what warren buffett loves is to buy history. an iconic image of oklahoma oil going back to 1917. tell us about the company his by? is it the -- tell us the company -- tell us about the company. vincent: roughly 2.2 million barrels of throughput capacity spread across the u.s. tom: does it link into railroad assets? vincent: it is the transportation of crude, the cutting, cracking of crude into gasoline. are there other opportunities out there like this? skip: he is creating a virtual integrated oil company through his position. other other places you could do that? sure. what you want is a refiner that is exposed to the coast for export purposes. that is one thing phillips 66 has done well. tom: so they are selling oil like you put in your engine abroad. they are not selling a barrel of oil abroad, right? aip: they are not selling barrel of crude oil, but they are running it through a refinery. tom: i am amazed at the refiners. they have not gone down in price. they have done way b

berkshire b shares which are up 12. like berkshire a, the a shares. >> one of the problems we have now is we have a lot of cash. and berkshire a. >> it does trade in a range and we have customer who are calling you and saying why am i 20% cash? and i said you're asking the wrong question, you should be asking why am i doing so well? because that's how you're doing so well. this is a chance to get into the market and we like b because as i told you last time, the market to me then was like the day after black friday, no deals left. it's all situations in tragd. visa, make the case. >> visa is the only new investment idea we've had in the last six or 12 months. we've sold some american express, i liked visa under 70. unfortunately stock went up to 77, i'll buy it at 70, won't pay 77. >> blackstone? >> blackstone for the tax-advantaged client, tax-advantaged account, nice sweet price of $40 so it's not off the charts like some of the over ones. it's not a yield, but it's a partnership payout of 7.5%. >> so much of the stoc

♪a one, a two, a three percent cash back♪ >>> berkshire hathaway out with earnings.angelis has the details at headquarters. jack. >> hi there, melissa. it pears americashire has missed according to what we were really expecting here. let me go through the numbers for you. operating earnings down 10% for the quarter compared to the same quarter last year. operating earnings per class a equivalent share $2,367. we were looking to be a little bit over 3,000. that was also down 10% year on year. what appears to be the issue here was the insurance underwriting segment of the business he. it went to a loss year on year. at the same time it seems like they got a little boost from their non-insurance businesses as well. we are watching the shares in after-hours trading. the a shares unchanged, very low volume and of course the b shares slightly lower as well on unusually light volume as well. back to you, melissa. >> thank you, jackie deangelis. a lot of people look at this as a conglomerate. jackie said insurance was the problem. do you see insurance having problems? >> wel

the merger earlier this year was driven by warren buffett's berkshire hathaway and 3g capital of brazil. fears of legionnaires disease forcing a drugmaker to shut down a plan. glaxosmithkline cutting down -- shutting down a north carolina facility. the plant makes inhaled drugs. -- bernie sanders's campaign is gaining traction. in a statistical tie with hillary clinton in new hampshire. the vermont senator has a lead of 7%. mark: another legal hurdle today calais huddle in the tom brady -- meeting with roger goodell in a new york courthouse. the judges telling them to work out their differences about the four-game suspension over that of late -- deflategate scandal. up --t: coming mark: emerging markets in a bear market getting hurt by china's falling yuan. how much worse could it get for these markets? scarlet: more people returning -- families forced to make tough choices on spending habits. the reason it is getting so much focus, millennials. mark: the keystone pipeline taking center stage in the canadian prime ministers elections. could this further complicate president obama's deci

the senate berkshire hathaway was put on creditwatch negative because of uncertainty around the funding of the acquisition and how that may affect current cash resources and leverage metrics. buffett has built berkshire over the past five decades largely by using premiums held as insurance units. the operation now includes power companies, retailers, manufacturers and so on. the deal for position is among his biggest effort and a rare instance of using debt to finance a deal. buffett has long said he likes to keep a sizable financial cushion to deal with major claims. the have a aa rating from s&p which we do third-highest of 10 investment grade levels. new front and cybercrime u.s. prosecutors say they have broken up and alleged insider trading ring that relied on hacking corporate press releases before they were made public. they say hackers accessed 150,000 releases including corporate data on earnings that could be used to anticipate stock market moves and make profitable trades. over five years they infiltrated the servers of prnewswire, market wire and business wire. they pass the

google wants to become the berkshire hathaway of the tech world. goal is reorganizing into a holding company called alphabet. the company's search and advertising units will be separated from new businesses such as self driving cars and health technologies. each alphabet subsidiary would have its own ceo. that is a structure similar to warren buffett's berkshire hathaway. larry page will be the ceo of alphabet. negotiators have agreed on a deal for another greek bailout. says only avernment few details need to be worked up or the agreement will give the greek $94 in loans. that moneys some of -- in the next week it has a payment due on august 20. it is being called a new front in cybercrime. louvered news reporting that u.s. authorities have broken up and insider trading ring that relied in computer hackers. nine people are expected to be charged today in new york and new jersey. the hackers are thought to be in the u cane and possibly -- in the ukraine and russia. their broken into pr newswire and business wire. the world's top ranked golfer says

it is textbook berkshire hathaway. there are echoes of it.rtainly talked warren buffett's structure. google is a cash cow here. let's not forget that. despite the fact they have several billion on youtube, android, etc., the difference, .t is very clear of moontself has a lot shots. they are not done with innovating. i would argue there is a tremendous innovation right there, unlike the insurance business. erik: the fact that investors are responding so positively, trading up $40 this morning, it means immediately apple and and alibaba all have to consider doing the same thing? templatestablishes a here remember google pioneered, in the tech industry, and made it ok to had dual >> shares when they went public. since then, almost every new emerging company has. this structure is something i , because of technology ofnging every industry, all these are going headfirst into so many businesses. alibaba are winning emmys. they are making movies. they are building drones, etc. in theory, tesla, apple, google, and a burke, will all be competing theo

berkshire hathaway expanding its stake in philip 66 to $4.5 billion stake.ou can see we open higher today but we are still up about 9/10 of a percent. philip 66 is the biggest refiner in the country and refiners have done quite well year today -- year to date compared to the broader oil index. here. pulled up a screen refiners in orange and the s&p 500 energy index, the worst performer year to date, in white . doing poorly compared to refiners. refiners have boosted the amount of business they are doing with cheaper oil. that is one of the reasons warren buffett thanks this might be a good buy. people are driving just as much if not more than ever before. we are approaching labor day weekend when a lot of people will be out there on the roads. back to you. olivia: thank you so much. i look at top stories at this hour. walmart is spending $1 billion to provide more training and raise wages. employees have been told to leave shifts early or take longer lunches. samsung shares are slumping for a fifth straight month. the electronics giant has lost $44 billion i

obviously the most high-profile largest holder is berkshire hathaway, warren buffett's berkshire hathawaynd 151 1/2 million shares worth of stock. just doing some quick math here, with 151 million shares, you are talking about a near $600 million-plus maybe in the value of berkshire's holdings. among of large investors within american express, the large mutual fund names -- vanguard, state street, blackrock, whether it comes to etfs, fidelity also there. just looking at the top shareholders, far and away of course it's berkshire hathaway, warren buffett's berkshire hathaway with a large stake, about 151 1/2 million shares as of the last round of 13f regulatory filings. interesting to put some of those top holders in perspective. >>> here at the nasdaq we're down .8%. biotechs continue to be the big story today. the ibb down again and down 4% for week. more than 80% of stocks in the index with caps of $10 million. biogen down 3% from its 52-week high. nvidia raised its revenue guidance thanks to an increased demand for high-end computers. >>> the dax has been a beloved trade, it's up 20% s