scrutiny over berkshire hathaway. is it specific to berkshire hathaway?s specific to berkshire hathaway. what regulators are looking at is the financial stability oversight council. it was set up after dodd frank to prevent another financial crisis. it is led by the treasury secretary jack lew. they look at companies that could potentially be a risk to the broader financial system if they were to fail. that does not mean that they think berkshire is in trouble or anything like that. the part of berkshire they are looking at for the time being is the reinsurance operation. the financial stability board, which is that international group easton switzerland, they are going to be -- based in switzerland, they are going to be looking at companies that are a risk for the global financial system in july. they want to get ahead of that, the council here in washington. they want to get ahead of that, and not be caught having not done their homework. on one of the reinsurance operations. >> so, ian, if we are to understand, this scrutiny is taking place because the

the f zock gone affirms like berkshire hathaway last year -- fsoc.nbank financial firms as sifis. aig, ge capital and prudential financial. so mom meant from the fed tore -- comment from the fed and treasury on the story and no comment from berkshire hathaway. david: you heard hit here first through peter barnes. thank you very much. we asked you on twitter if you thought herbalife is a solid company or a pyramid scheme as some senators are now saying. at crime busters saying amazing chasm between pyramid and solid company could leave anyone guessing. wonder if that is a cat or a skunk. saul says, i'm not sure, but you will get rich from a product. the company is questionable if pyramid scheme gets them. if you figure that one out, you're a better man than i am. tomorrow on "after the bell" we'll head back to the world economic forum from davos. more top business people in the world. novartis's ceo. melissa francis and money is coming next. i ys say be thman with the plan but with less ergy, moodiness, i had too something. i saw mdoctor. we talked ab

and yet he's the person warren buffett wants to succeed him as chairman of berkshire hathaway, the mega holding company that buffett built. like his father, howard does not live the high life. in fact, he's a farmer who would rather dig up the ground than sit in a boardroom. are you sure he's your son? >> well, i think that's worth checking out. you'll have a big exclusive. [ticking] [bell ringing] >> for 150 years, the floor of the new york stock exchange was the center of the financial world. but today most trading in stocks is done elsewhere by robot computers that buy and sell in microseconds, faster than you can blink an eye. and the computers have done so well that some institutional traders have come to believe that the game is rigged. are humans ever involved in the trading? >> humans are not involved in the trading because humans are way too slow. [ticking] >> there are close to 850,000 of them in the united states, twice the number of atms. the new slot machines, the main attraction at casinos, are like high-tech video games. and states across america are increasingly relying

that is owned by warren buffett's berkshire hathaway. he is leading the world know he is betting on crude oil ports. they are swapping shares of phillips 66 for full stock. this helps the product flow through pipelines more quickly. this only the latest of buffett's investments. it accumulated more than $4 billion stake in exxon mobil and berkshire hathaway added holdings and the national oil embargo and suncor energy. if warren buffett is right, one of north america's a gift and most controversial could play right into his hand. the keystone pipeline might as well be a line in the sand. environmentalists and lawmakers. >> teh keystone xl pipline is a 2000 mile funnel. if the $5.3 billion pipeline is approved, what does that mean for jobs? it will create 42,000 jobs during the two-year building phase. almost 4000 are pipeline construction jobs. the pipeline only expected to create 35 permanent jobs. a recent report forecasts a thin profit for oil companies. the recent shale boom created a glut of oil in the united states, dragging down p

marquis jet to berkshire hathaway in 2010.it was a dream come true for me and my partners who came from

just how far off the mark, his own mark, is berkshire hathaway?lk about we will -- what we are measuring, book value of berkshire hathaway. companiesof the working versus what the stock price has been doing. if you look at what the s&p 500 has done over the past five years it has returned about 128% , and it does include dividends. at the same time, the book value of berkshire hathaway, according to estimates, is north of 80% but still a far cry from 128%. warren buffett pointed out earlier this year he was not sure he was going to make it. if you look at book value through the end of september, there you have the actual number. nose66, 80% gain on the and now analysts are looking for a gain in the low to mid 80's. of curiosity, what is the first -- what does the first potential miss and 44 years mean to you? >> a couple of different ways. the two more important things is, one, the s&p 500 has climbed a whole heck of a lot in the past five years. the other thing is berkshire is getting really -- >> he is just suffering from the comparison? >> yeah

might be listed as systemically important situation that means that berkshire hathaway would be considered too big to fail and we now have firms that are explicitly listed as. too big to fail. i would rather see things like the f.b.i. see you go away and have firms actually have to pay but if you're a positive assurance bank that you have to actually have to pay the real costs of insuring deposits to the point where it's actually an affordable and you have these large banks start to disintegrate and have to break them off into smaller bits so you have smaller companies as opposed to telling a bunch of really big firms by the way we're going to label you as too big to fail which means you can to stay as large as you can you can take the money that we're printing you don't have to invest it back in the economy you can continue to just throw it into stocks that are generating a lot for everybody else and we continue to have this sort of muddle through stagnating economy now this might seem like a simplistic question but don't we have laws against monopolies the sherman act no bu

. >>> warren buffett's berkshire hathaway is swapping around $1.4 billion in shares of phillips 66 forwnership of one of phillips' businesses. the unit berkshire is acquiring make chemicals designed to increase flow in energy pipelines. shares of phillips 66 rose 3% to $77 and change. shares of berkshire hathaway were also up a fraction to $118.56. >>> hewlett packard is cutting 34,000 jobs by the end of next year. that's 5,000 more than the company originally estimated when h.p. first announced the layoff plan in 2013. the company did say the cuts could increase. shares were off a fraction to $27.98. >>> revlon also cutting costs. the cosmetics company is leaving china and reducing its work force by 20% as part of a plan to slash costs by about $11 million a year. the move comes as revlon sales have dropped in the asia pacific market. shares are at $24.96. >>> our market monitor guest says investors shouldn't assume that stocks will be just so-so in the new year just because 2013 was such a phenomenal year. he's corn charlotte son -- chuck carlson from horizon investment services. tha

federal regulators are crude rising berkshire hathaway -- are scrutinizing berkshire hathaway. s to determine whether berkshire is too big to fail and needs federal reserve supervision. is it? >> they are certainly not a bank. they own a big chunk of wells fargo and american express. they are a big reinsurer. in some ways, they look like a large hedge fund. in other ways, they look like aig without the excessive derivative underwriting. the question is one of size. when anything gets that large, are they potentially problematic to the overall financial system? i honestly do not know. >> we were looking through some of your research. you have been saying you have to watch the nfl. if it starts talking about ipo? concession -- concussion settlement go to the judge and the judge kicked it. he said it does not go with enough of a reserve. there are too many former players who are potential litigants. the award is not even going to pay for their medical bills. there are talks the nfl is looking at an ipo. that tells us the liability on concussions is greater than anyone imagined and

for the first time in 44 years, berkshire hathaway is likely to fall short of a key benchmark. rapidly over a five-year period, this year was different. long lines in colorado, stores able to sell marijuana legally for recreational use. the state trying to make sure legal marijuana does not make it into the black market. denver's airport signs warn not to take the drug home. street to wall street and pay. shares of banks coming off one of the biggest annual rallies and 15 years, a boon

quicken is putting up the money and berkshire hathaway is ensuring the prize. the odds of picking a perfect brangt every single game are one in nine quadrillion. if you select the winner of every single game, you could get 45 annual payments or lump sum of half a billion. >> you better get your calculator out and start working the numbers. >> absolutely. >> that's "nightly business report" for today, i'm susie gharib, thanks for watching. >> nightly business report has been brought to you in part by -- founded by jim cramer, the street.com is an independent service, home to multimillion dollar portfolio. you can learn more at the street.com/nbr. >>> tonight on revolutionaries. >> it went through incredibly fast and powerful. and on the moment of the new generation. >> the cup in 2013 shocked the world with a new boat design, new strategies, and a revolution in video coverage. we go behind the scenes of the america cup in san francisco with team u.s.a. ian burns, team member matt mason, and television pioneer stan honey. major fundings for revolutionaries. >> th

quicken is putting up the money and berkshire hathaway is ensuring the prize. the odds of picking a perfect brangt every single game are one in nine quadrillion. if you select the winner of every single game, you could get 45 annual payments or lump sum of half a billion. >> you better get your calculator out and start working the numbers. >> absolutely. >> that's "nightly business report" for today, i'm susie gharib, thanks for watching. >> nightly business report has been brought to you in part by -- foued by jim cramer, the street.com is an independent service, home to multimillion dollar portfolio. you can learn more at the street.com/nbr. [ ♪music ] >> memory can be illusive. for certain artists, creating their art is entwined with chasing the shadows of memories. >> binh danh: the people are really looking back at you and kinds of asking about what happened to them, asking about history. >> christopher brown: there's no new stories in life. there's simply new experiences of people living in the present. >> the influence of memory, this time on spark. [ ♪m

that money put up by warren bu buffett's berkshire hathaway.rrectly predict the ncaa basketball tournament. >> getting a little more crazy. if someone does it, he or she will be paid in 40 annual installment of $25 million, or take a lump sum payment of half a billion. i will take it either way. >> the odds are worse than the powerball. never been done, i don't believe. >> paying big. >>> coming up, we continue our coverage of the latest round of winter weather. we'll have the latest on flight cancellations throughout the nation. >>> and another odd outburst from toronto mayor rod ford. we'll let you hear what he has to say and maybe you can figure out what he's saying. you're watching "world news now." ♪ i got to get drunk because i know what i'm going to do ♪ >> announcer: "world news now" weather brought to you by colonial penn life insurance. it just hits you!

the money will be paid with the backing of warren buffett's company, berkshire hathaway.efore any potential bracketers get cocky about it, remember, there are 9 quintillion ways to fill out the 64-team bracket. that's 9 billion trillion. put more simply, it's a 9 followed by 18 zeros. then again, we're talking about a billion dollars. >>> when we come back, how they found each other. the survivor and soldier who helped save her so many years ago. >>> finally here tonight. a story that begins at the end of world war ii. two people, one of them caught in the horror of the concentration camps, the other, a man who arrived on the side of the liberators. now, almost 70 years later, their story has come full circle. we get the story tonight from nbc's rehema ellis. >> i never forget it. >> reporter: at almost 90 years old, marsha kreuzman is still haunted by the horrors of the holocaust she lived through as a teenager. >> we didn't exist to them. we been disheired, pushed to death, killed, murdered. you cannot imagine this. >> reporter: kreuzman spent five years in concentratio

. >>> could warren buffett's berkshire hathaway be too big to fail? it could be according to the financial stability oversight council. it's headed up by treasure secretary jack lew. this risk council is trying to determine if berkshire could threaten the nation's financial stability should it fail. and if so, the company would be subject to stricter regulatory oversight. >> from the here we go again file, the economy could be in real trouble real soon if we hit the debt ceiling and washington can't borrow more money to pay its bills. treasury secretary jack lew told congress it has to act now and not wait until the last minute to increase the nation's borrowing limit. >> i think they know what they have to do. i think they know it was not a good thing to create the kind of economic anxiety that was created just a few months ago. we're doing pretty well in the u.s. economy right now. we've got some tail winds. we're seeing the year ending strong, beginning strong. we have to make sure there are no more self-inflicted wounds. >> on wednesday, lew wrote

warren buffet, berkshire hathaway and quicken loans is putting up a billion dollars that will go to anyoneectly predicts the winner of every game in ncaa men's tournament. some inspiration. >> oh, yes. if someone does it he or she will be paid in 40 annual installments of 25 million bucks. or you could just take the lump sum payment of 500 million which is what i'm planning to do. >> lump sum payment. virtually impossible, the experts say, it's never been done in the espn brackets or some of these other popular ones but apparently a 17-year-old boy from indiana did it a few years back but the odds of running the table and getting the money is way worse than winning the powerball jackpot. >> offering up a billion big ones. >> someone has to do it. why not us. >>> arnold schwarzenegger is coming back, so strong in fact that he is the star of our "play of the day." >> yeah, first we're seeing the former governator as a golds gym employee. his character's name is howard and he's giving gym clients fitness tips. >> sit up straight. very good. stop being a baby. this is gold's gym. it's not a ba

important to take a look in the etf itself and the top three weighted are jpmorgan, wells fargo and berkshire hathaway. on the street it seems the one in most favor the bank of america and citi. is this the way you want to express your bullish conviction on financials in general? >> i think it's a really good way to do it. because xlf respects a basket of stocks that compresses the price of stocks a little more, we've seen that because of the way the market has been behaving, the index types of products that's where the options premiums have been declining most. you're able it to get these bets by doing something dan is recommending, purchasing an upside call for a relatively small amount of premium. you get a lot of upside leverage and you're significantly mitigating any of the risk you take to the downside in case we see some news that's going to push the stocks the wrong way. >> scott, like this trade? >> i do. dan makes the right point here, implied volatility is as low as it's been in 24 months but it's low on an absolute basis and so in a situation like this, you don't want to get too cute, don'

the second management shakeup by berkshire hathaway. motors in china for the first time in nine years. largestes europe's carmaker the lead among foreign automakers in the world's largest car market. germany's biggest retailer, metro, reported revenue this morning. hans nichols is all over the numbers from berlin. a little bit of a disappointment today. >> a little bit of a disappointment in metro. these numbers are so interesting. it is the fourth largest retailer in the world. it gives a better sense of consumers both in europe and outside of europe. ae numbers are, we had disappointing christmas. that was true in germany and elsewhere. they were buffeted by a strong euro that hurt sales in eastern europe. overall, revenue is down 3.3%. the stock is moving on the back of those numbers, down just about 1% last time i checked. the ceo tried to put a brave face on the numbers. here is what he said. the an answer year has gotten off to a solid start in spite of the still challenging background." inenue was down almost 2% local currency. i

regulars are said to start scrutinizing berkshire hathaway.il is evaluating which non-buying financial companies could threaten stability if they were to fail. welcome back. >> 6:41 a.m. in london. picksor look at the top from today's newspapers. our european business correspondent caroline hyde is here. francine is in davos. or shaking his head. >> we picked the same story. bible thatd of a everyone has. this is a program for the world economic forum annual general meeting. at 9:00 a.m. we have a workshop. >> it is on meditation. this is a workshop, a goldie hawn meditation workshop. it is how we deal with stress. ceo's this to morning. we had the lloyd's ceo. this morning. cool.greco just said be stress ofot have the making acquisitions. it to the conversation. el-erian of pimco saying he struggled with work life balance. finance whenn someone is resigning it is because of legitimate reasons. >> the one session, we have great sessions. we have the iranian president. this is the davos paper. abouth telling us here theired to allow customers t

marquis jet to berkshire hathaway in 2010. dream come true for me and my partners who came from nothing. we still feel like we came from nothing, which is a good thing. it was a dream come true, which led to creating tequila aviÓn. dream comes true, but you are not content. it you go back into your personal history. you were in the spirits industry for seagrams. how do you come back to that? >> it's an amazing thing how life comes full circle. i have an accounting degree. company for the gallo -- >> ernest and julio. where i come from, it was a to too much hope, where you start there and die there. i ran the beverage company. the company was sold. that is what led to the marquis experience. eating in the spirits, the wine industry, when you have that in your blood -- it is great to come back to it. that is why i pursued my dream, which was to create the best tequila in the world. ?> how is it avion .> it is obviously a tequila >> why did you start with tequila? >> because i am insane. it is probably the hardest spirit to make.

u.s., a company byd,ed by warren buffett, and they focus on election -- electric cars, and berkshire hathawaystake. notlindsay vaughn will defend her downhill skiing title, and that was a reason she heard her knee and then reinjured it. she must -- is the most marketable winter olympic athlete. turning to the latest on the so- , and we are vortex bringing in su keenan. she has the latest on this come on it to you wild ride. some say you really should not be cranking up the heat at this time, right? >> yes, they are talking about having people conserve. this jones to never before seen levels on a 13-state electricity grid. it jumped 13 fold, and traders say in the past 15 to 20 years in trading, this is probably the coldest weather they have ever seen. anything never seen like this. >> as for natural gas, you told us about the volatility in prices. any change today? gainer inthe biggest commodities last year, and we are seeing it taper, with milder weather ahead. news is production in the u.s. is pretty strong right now. >> we need to think differently about energy in this country. we are now

that money put up by warren buffett's berkshire hathaway. and quicken loans. game in this year's ncaa basketball tournament. >> march madness just got a little more kreez. if someone does it, he or she will be paid in 40 annual installments of $25 million, or they can take a lump sum payment of half a billion. ly take it either way. >> the odds are worse than the powerball. never been done, i don't believe. >> paying big. >>> coming up, we continue our coverage of the latest round of winter weather. we'll have the latest on flight cancellations throughout the nation. >>> and another odd outburst from toronto mayor rob ford. we'll let you hear what he has to say and maybe you can figure out what he's saying. you're watching "world news now." ♪ i got to get drunk and i sure do dread it because i know just what i'm going to do ♪ >> announcer: "world news now" weather brought to you by colonial penn life insurance. >> announcer: "world news now" weather brought to you by colonial penn life insurance. it just hits you! you've t different wayet rid. but theyad end.

. >>> buffett's company, berkshire hathaway, as teamed up with quicken loans to give $1 billion to thell out the perfect tournament bracket. you have an option of being paid out in 40 payments or a lump sum. by the way, the chances of that are 1 in 9.2 quinntillion. it has 18 zeros. so pencil me in right now. make sure to follow me on twitter @jaketapper, that's all one word and also at @theleadcnn. that's it. i'm jake tapper. i turn you over to wolf blitzer. he's in a very cozy situation room. >>> all right, jake, thank you. a dangerous winter storm hammering the eastern half of the united states with brutal cold and heavy snow. cities are shutting down. thousands of flights are canceled. we have full team coverage at this hour. >>> a desperate hunt for female suicide bombers known as black widows and a shadowy figure known as russia's osama bin laden who has vowed to target the winter games.

if you can pull off the lofty feat, quicken loans and berkshire-hathaway will give you $1 billion.r $500 million lump sum or split it up into 40 annual installments of $25 million. only one submission is allowed per household. frank and michelle. >> by the way, the catch, the odds are 1 billion to 1. i'm not sure anyone has ever done it. >> i don't think so. >> reporter: most major contests that they have people get at least 10 or 12 games wrong. >> of course. here's a shocker. i guess home heating oil, that's going up, as well? >> reporter: the cold temperatures it left behind are part of the reasons why propane and natural gas prices are skyrocketing. it's been colder than normal in the u.s. and there have been a number of storms this winter. if you use propane to heat your home, you will see the biggest price increase as much as $200 more to fill up a tank compared to a month ago. even if you don't use propane, you will likely get a bigger bill next month since you're using more fuel. >> kind of figure that was coming. >> no kidding. >> that's the way it goes. wendy gillette in

warren buffett and berkshire hathaway and quicken loans are partnering to give away a billion dollars a perfect march madness bracket. david: wait a minute, a billion dollars? sandra: anyone thinks they can do it. the prize is paid out in 40 annual installments of $25 million. david: how am i supposed to live on that? sandra: or, david, take immediate 500 million-dollar lump sum payment. if there is more than one winner, share the winnings. david: forget that. sandra: odds of winning are not very good. 1.92 quinn till i don't know chance to be exact. contest starts march 1st. david: a billion dollars. sandra: there is a chance. david: there is a chance. a copyright fight. the pandora music streams service is taking on the industry group known as ascap. sandra: dennis kneale is looking into the clash. he is joining us now. dennis. >> how are you doing, guys? the federal trial begins today for pandora's lawsuit against ascap, american society of composers, authors and publishers. the online streamer sued the copyright group over a year ago seeking to reduce fees it must pay and implicat

berkshire hathaway is paying out big bucks for perfect brackets.artnering with dan gilbert of quicken loans, he's giving 40 annual payment. chances of winning, 1 in 9 quintillion. >> feel like my odds are good then. >> you're saying there's a chance? >> good one, grasso. tradering seeing heavy activity in oil after halberten, baker hughes and schlumberger beat earnings. is it warm where you are? >> i am cozy. i saw guy hanging out in times square in the snow. on the oil service space, we saw unusual activity today. this is a little unusual for two reasons. one of them being, as you just mentioned, all of these reported. baker hughes, 1.5-times its average daily volume. and schlumberger. halliburt halliburton, trading lower today. and rpc said people hasn't interpreted the earnings. and that the margins may have been better than they said. an institutional investor seems to be playing along with the bullish view. we saw a sale of 4,000 of the january 15 spreads. they collected $1.40. and they used the proceeds to buy a call spread of similar duratio

. ♪ david: warren buffett's berkshire hathaway could be in for a multidecade record but not the goodompany is poised to report it failed failed to increase net worth surpassed the subpoena 500 in 10 years. this would be the first time since 1965. cheryl: bit craze intensifies the demand for atm interest is rising. they have 190 of them in the past month alone. are atm sales indicator of booming business or a bubble waiting to burst? david: a lot of bubbles waiting to burst according to some progno, sir tatetores. -- prognosticators. we have the atm manufacturer. one thing i'm wondering are they legal in the u.s.? >> well thanks for having me. and they're definitely not illegal in the u.s. there will be regulatory requirements but all of our operators are working with their lawyers to figure out all small details of that. business has been doing well for us, especially the last month. we've sold 90 of our machines, 130 overall, all over the globe. the idea of the machine is very simple. the easiest way to get bit down in the shortest amount of time. all you do with our machine, you wa

. >> buffett's berkshire hathaway is now saying it is buying a $5 billion stake in goldman... >> $5 billionf preferred stock... >> it's a huge surprise... >> the next day, raj gets on the phone with one of his traders in asia, and he's so proud of himself. >> narrator: prosecutors allege that gupta had a financial interest in passing rajaratnam insider tips. he was convicted on insider trading charges, but is now appealing. rajaratnam was convicted and is serving an 11-year sentence. >> smith: there's a picture i've seen of you with rajaratnam under arrest. put me in the moment. >> there are two sides to that, where this was a culmination of the amount of work that we put into it, but the other side, the bigger side for me, was that, based in part because of the galleon investigation, we still had a tremendous amount of work to do. so it wasn't, "we made the arrest, now it's over." it was, "we made the arrest, okay, now we continue." >> narrator: the fbi refocused their investigation. informants had pointed them toward independent research firms known in the industry as "expert networks." >

bracket for this year's term in-judge tournament and if there's a winner, buffett's company berkshire hathawaya prize. but that's a pretty big if because the odds of winning are even greater than the winning back the millions of our balls top prize. back a signs website or ferry docked in that says there are more than nine quintillion possible ways to fill out the 64 team bracket creep but buffett said since the winners in the tournament aren't random there's really no way to accurately calculate the actual lot of the perfect bracket creep quicken will also pay out $100,000 for 20 contestants who scored the best in the brackets. ♪ [ female announcer ] wherever morning brings you, bring the energy you need. nature valley soft-baked oatmeal squares. softly baked, made with hearty oatmeal and a drizzle of cinnamon. they're nature valley's take on a morning classic. because when you keep going, the morning can bring you to brand-new places. ♪ nature valley. nature at its most delicious. here stanley roberts who found some people behaving badly. (siren) san franciso fire department medic 96 is resp

fiber-optic alley buffett said he would hire jamie dimon at berkshire hathaway if he decides he wantsy. warren buffett, not always seeing eye-to-eye politically with jamie dimon who is little more conservative. warren buffett coming hyped jamie dimon 100% in support of what he is doing at jpmorgan chase. has to be good for jamie and the bank. >>> what effect will debt ceiling have on banks in this country? liz claman had a chance to sit down with bank of america ceo and president brian moynihan what hopes washington will do with the upcoming debt debate. take a look. >> i hope they work through, they have a budget deal which is unusual. the debt ceiling goes on context not having a budget deal. it actually started, when i talk to our clients around the world, but especially u.s., started in '11 and thing got started and downgrade. people got concerned because maybe they didn't understand something because at that time europe was pretty confusing. u.s. got confusing. asia got cons fusing and china particular. people sort of backed up. when you go to the u.s. and west coast and southwes

associate broker with berkshire hathaway. the first listing.n't look great on the outside. 1011 watkins street listing for $309,000. above the median or average in town. taxes, $2,700. two beds. 1 1/2 baths. 1,120 square feet. >> beautifully renovated. exciting area known for restaurants. it's an dwlaer had been a blue collar area and now a lot of fixing up going on. beautiful wood floors throughout. exposed brick walls. custom kitchen. many architectural details. backsplash, something that the first-time buyers will walk into and love. >> a center city location? where? >> this is south philadelphia. called east past young square. one of the red hot districts, where someone can afford who can't afford a $1 million or $800,000 home. >> second listing. 506 cater street listing for, $569.900. 2,100 square feet. h tell me about this one. >> yes. located in the queen village section of center city. it's just off the south street. the hippest street. this home was done several years ago. has -- everything is gorgeous. walk-in, third floor master bedr

time in 44first years, warren buffett will miss his target of increasing berkshire hathaway net worthe of the s&p 500. continued rally would mean berkshire would fall short of the goal and of course the s&p cap the going up so its return 100 and 28% including dividends since the end of 2008 and the book value, has yardstick thomas up 80% starting at the same point through september 13 -- september 30. they are predict in his gain will be in the low to mid 80s. that would indeed mean he fell short of his own target. this comes with some caveats. first of all, if you look at his longer-term record, it's pretty darn good. >> just 20% annual return. a part of this has to do not with his necessarily making bad decisions although one could as thehe ibm decision s&p 500 and stock overall, the amazing outperformance compared to historical alarms. the indexrd to beat every year. it's especially hard to beat an index when it's up 30%. that's what he was up against. >> one of our bloomberg view w referenced another blogger saying if you look at an index fund it's true that hardly anyone -- if yo

berkshire hathaway has a companies.on of >> she is officially the chairman of four units, including onein more is moore is a paint company a lot of people like. laura colby and i spoke with buffett about her evolving role. said that she thinks like he does and for that reason she trust him to be out there and oversee the sprawling business empire he has built. >> she was voted most likely to be a billionaire. here are some who say that idea was not exactly the same as everyone else's. we spoke with some of her friends. they say that tracy is very interested in business. she has the kind of mind that can drill down and think about the things that matter to someone like warren buffett when he is overseeing a big business like he has. had to fire three ceo's and find replacements. >> she had to change three ceo's benjamin moore had to change the ceo for a second time. it has not been entirely a slow -- smooth ride. but this is maybe a good thing for her to be going through these experiences. they will test her. they will make or potentially a more valuable person for berkshire long-term. t

turning to another event that we are looking at as it unfolds, warren buffett has made a name for berkshire hathawayith strong consumer brands, like heinz and coca-cola. he is now testing the appeal of his own company's name with bircher hathaway home services. noah,re i am joined by who covers bircher hathaway and warren buffett. this is an intriguing story to me. we all know about cold where -- coldwell banker and century 21, but bircher hathaway home services does not spring to mind, get it is a huge company. >> this is actually a business that he bought about 14 years ago. it randomly came along with an in 2000.mpany through acquisitions they have steadily been growing. they are in a bunch of states, they are sort of national. the interesting development here is about one year ago, they purchased a franchise network. if you used to drive around and see prudential franchises, they bought that network. as a result they have been slowly introducing this new that, both to brokerages they own themselves and some others that are just ranch ices. >> before about one year ago, the bircher hathaway home

it seems like a safe bet, berkshire hathaway backing a $1 billion prize to anyone who picks any winnerery winner of every game in the march madness tournament. a joint effort between buffett and quicken loans. one.dds, 9 quintillion to 0's.llowed by 18 we will take those odds. >> i always get knocked out really early. >> do you study the teams or pick them by the jersey color? >> isolate him backwards. -- i fill it in backwards. >> very interesting. >> bragging rights. >> $1 billion. >> real money. trouble ahead for hbo, showtime and other premium pay tv channels. this is from npd group, subscriptions to premium paid tv channels is the yellow line, they are slipping. falling to 32%, down 6 percentage points. subscription video-on-demand -- netflix, hulu plus, gaining strength, the white line. 32% versus 27% two years ago. in terms of who leads the way, netflix, 80 nine percent overall. hulu plus has a 10% share, and amazon prime at 2%. david bank, looking at netflix gaining momentum, balance that with content costs it needs for all the content. is it a credible threat to the premium pa

time in 44 years warren buffett will miss his self-imposed target of increasing network of berkshire hathawaye than the s&p 500. he said the continued rally would have berkshire falling short of the goal. up 29%, 32% if you include dividends, bringing the five-year return to 128%. network per share was increased by 80%, not too shabby, but it will be hard to close the gap in one quarter. >> it is hard to ignore his long-running track record if you go back decades, and he was hurt by ipm -- ibm. >> he is also his own victim in the sense that he set the target -- >> it is a high bar. >> and also, it is apples versus oranges. there is underlying profit to s&p 500 companies, and then there is the multiple expansion. if you wanted to increase at the same rate as prophets, that could've have been closer to the mark, but investors became much more bullish on stocks. % was multiple expansion not actual improvement. >> like i said, hard to improve the track record. we will be talking about what is going on in colorado -- legal to buy marijuana for the first time. we will talk about that. >> yesterday

regulators are looking into the berkshire hathaway -- they're trying to determine if the firm should be supervised by the federal reserve. this evaluation is part of a move to identify which non-bank firms could threaten financial stability if they were to fail. toyota sold the most cars in the world for a second straight years. sales climbed to just under 10 million units worldwide. they predict that they will cross the 10 million mark this year thinks to demand from the u.s. and china. jim placed second. that is today's complaint is. we want to head back to douglas, switzerland. tom is freezing. you have a lot of great guests. >> gorgeous weather compared to the east coast. a private interview with a very private michael dell. he is the founder of dell. we will talk about technology. we will talk about the transaction of ibm and lenovo. from the world economic forum's, from a cold new york, it is "bloomberg surveillance." ♪ >> this is "bloomberg surveillance." i am scarlet fu. tom keene is joining us from davos, switzerland. he just spoke with michael dell, the ceo and founder of d

a 29-year-old kid who is the chairman of four berkshire hathaway companies.she has fired three ceos. amazing. >> she is unusual, one because of her age, to because she is female, but obviously her parents knew something that we did not know. >> farmers. >> as opposed to harvard. >> two-putted in that context, -- to put it in that context, he has a generation of leaders he is grooming. they are there right now. >> those oriental painting catalogs? >> think about it for one second. look at who started some of the biggest companies in the country today. they were all started by 20- year-olds. bravo to warren buffett for picking a young person to lead his company and a time when are in charge. >> but this is not a new internet startup. she is thinking about compound interest. she is doing the most boring thing on the planet, which is why warren buffett loves her. he says that she thinks like him. poll onay, we did it bitcoin. 47% of those that we pulled would be sellers of bitcoin. only 11% would-be buyers. some 30% did not know what they would do with it. i also

>> it just makes berkshire hathaway more valuable in a sense because now, if the government says is "o big to fail congo that it will not fail. and creditors will will even better about it than they already do. >> if you get this tbtf license, put $1ou can go out and bu billion on the ncaa bracket. why not? >> but you do set it, they have the license. who grants them the license? >> who owns the fed? other big banks only fed. it has got the appearance of being owned by the american legal, but it is not. >> can we just disclose that since we have been talking about banks and jpmorgan, that you have a legal relationship with them that is adversarial at the moment. >> that is true, does been fully disclosed, be my guest and go look and see what jpmorgan is trying to do to me. suing you. price bill, you were in the middle of the lawsuit, and a still invited you to the jpmorgan conference. they are making a frenemy out of bill. >> things -- stranger things have happened. >> anyway, bill, you are taking a look, as the company, it is not a bad mark, it is not a red mark to be considered to b

warren buffett will likely report berkshire hathaway missed its target. say it isn't so. on latest data the s&p 500 had 128% returns is versus berkshire's book value which was up 80%. nothing to sneeze at. that is as of september a 30th. analysts don't expect it to make that much gain to make up the difference. score one for the little guy, i guess. ashley: it had to happen one of these days. remarkable ride for the s&p and after 44 years. tracy: you had to believe it would catch up. that is just me. ashley: started new streak. and tracy: and "countdown to the closing bell" december car sales are out. we will tell you who knocked it out of the park and what it means for investors. i will sit down with bob carter, vice president of toyota motor sales and ask why toyota is seeing the most growth and which one of its cars outsold the competition. cheryl casone in tte studio, dow up 54 points. don't go anywhere. [ male annouer ] me jill. and she might have if notor kari, the identity thief who stole r to open credit cards, destying jill's credit and her dream of retirement. e

an unusual name is berkshire hathaway with its investment in mid-america energy and burlington northerne railroads should benefit tremendously from transition from diesel to natural gas as a fuel and have an upwards of 50%, 60% fuel savings. >> erin, what do you see that's worth buying at these prices? >> you know besides afew of those, there are some places within the energy space, but another one we also like is in the materials, specifically chemicals. eastman chemicals is one of our favorites. it has one of the lowest estimates for 2013 but looking at 2014 coming off of those lows these estimates for 2014 have had some of the highest revisions upwards in the past few weeks and we think they could really be some of the big winners going ahead. >> thanks for your help. up next we'll come right back with the closing countdown. and also after the top of the hour earnings from at&t and yahoo!. they are due out very shortly, and we have full team coverage standing by to dissect all the numbers and what they will mean to those company shares and the overall market as well. you're watching