the outlier, warren buffett's conglomerate berkshire hathaway.t seems like in germany the tables are starting to turn, with newbies showing the old elite how it is done these days. reporter: at munich airport, chinese travelers are known as avid wires a luxury goods just before departure. since recently they have also been able to pay with alipay or wechat, chinese payment systems. it processes the transaction to the wire card company. germany's wire card takes a 1.6% commission for the service. >> to begin with, it looks relatively easy. ali trader has to do is integrate a little software. you also have to look very closely at the security angle. when you hear about how much data gets stolen, we have to look after the data. that means we have to make the corresponding tests and get it all set up. reporter: and wire card is growing along with it. the company employs 5000 people. these i.t. specialists at its headquarters are discussing their expansion plans for the u.s. a short while ago, wire card acquired a transnstion bankiking -- the boom is

when you think about amazon, jpmorgan, berkshire hathaway coming together, if it is just going to find another purchasing coalition, i expect incremental change. if you begin to leverage amazon's footprint alone, their relationship with the consumer, their customer obsession, we talk about healthcare is not as customer focused as it needs to be. amazon's customer loyalty, they begin to leverage their ability. one challenge of healthcare, employees don't touch the system with enough frequency in order for it to be routine, in order for them to be sophisticated consumers. amazon and other online shopping, if you can incorporate healthcare into their routine and leverage their platform you have an opportunity to reach them in a way no one else has been able to reach them. for me when i look at this coming together, the opportunities how do you leverage their platform to reach people in a more natural way and more frequent way than we reach them today. yes? >> a question about what you guys call high-performance networks, obviously related but different things too. are your employer's seei

the past few decades and most are technology firms the outlier warren buffet's conglomerate berkshire hathaway founded in eight hundred thirty nine now it seems like in germany the tables are starting to turn with newbies like why are cars showing the old elite how it's done these days. but munich airport chinese travelers are known as an avid buyers of luxury goods just before departure. since recently they've also been able to pay with early pay or we chat chinese payment systems. this watch merchant process is the transaction through the wire card company. germany's why a card takes a one point six percent commission for the service. on the phone thanks to begin with it looks relatively easy and at all a trade a has to do is integrated in software like that you also have to look very closely at the security anger when you hear about how much they target stowing we have to look after the data that means we have to make the corresponding tests in the data centers and get it all set up on this i am. and why a card is growing along with it the company employs five thousand people one of these i

. >> marquee jets, then berkshire hathaway and you've started another company, same space kind of, amazingwheels up, we're trying to be more netflix than net jets, a little more of a subscription model. five years in, really excited. i would say that we're definitely proof that anything's possible in america. >> well, good. yeah. that's good to remind ourselves, especially in these days. tell me one thing you've learned. >> i learned that you can't be scared to pivot. no business plan -- i know in your business, the people that you interview, the people that hit it are the ones who can move. there's no straight line in business. you have to pivot. and i think if you don't pivot and you're too hard core to your original plan, you're not going to get to the rainbow, to the gold at the end of the rainbow. >> what was your scariest pivot? >> i wouldn't say any of them are scary. i want's more scary not to pivot. we were focused on the 25 to 50-hour flier wheels up. the real imagine nick the space is the 0 to 15-hour flier, a person just getting into the space. that person is much bigger. >> co

billionaire who spend the money on politics, and on the energy side, nv energy is owned by berkshire hathaway, which is owned by warren buffett. one of the list conservative billionaires in the country versus one of the most liberal billionaires in the country. host: and we are talking about candidate donations. how does the candidate spending compared to the ballot measure spending in 2018? guest: california is frick only one of the highest priced states for ballot measures. thetop three most -- sorry, overall spending on ballot measures so far this year is about $129 million, the last time i looked a a few weeks ago, so it will be higher now. but $129 million is more than the two parties and outside groups have spent on the three most expensive senate races this year. the ballot measures in the campaign world, you can, we have made a decision as a society to restrict conservations to candidates because you might be able to influence a candidate, but we can influence a ballot measure, it is yes or no. so there are unlimited giving in most states, you can give as much as you want to an initia

some big names excluded are exxon and berkshire hathaway.ike most esg, you are going to be a little overweight tech and industrialderweight and that is par for the course. julie: we talked about the price, we talked about the big player. i think specificity. i know the name would be extremely long, but if they just what they don't invest with. if they strung it out or condensed it, that would help. people don't know what is going on. i think if they had a buzzword to it. esg is not exactly exciting. i also think getting active. they should make concentrated, high active shares of portfolios. foreigners --for out performers draw. everybody is waiting for godot with millennials. all the money. why are they appealing to them? they should try to appeal to the youth inside that would appeal to these issues and put their money where their mouth used to be. julie: thanks, eric. with the etf report with eric. vonnie: julie hyman, thank you for that. stay tuned. cannabis is booming. trouble for big tobacco? philip morris international's ceo is next.

that is why the partnership announced between amazon, jpmorgan, and berkshire hathaway on health care benefits is exciting. if these three large companies can use their scale and technology to create real change and move to a value-based payment, it could help nudge the system forward. a change i hope is also coming is the integration of spending. that between pharmaceutical benefits and medical services, rather than managing them in silos. so the recent mergers of cigna and cvs and aetna do present an opportunity to break down that silo and compare the benefits of technology directly to medical service. if on a large scale, employers and payers demand value, i'm sure our industry will find a way to deliver. so let's all work to create this future together. i think we can all agree patients are hungry for it. patients like marie. she is getting value-based care because her doctor is part of risk-based contracts that reward him financially when he keeps her blood sugar under control. marie is empowered because her insurance plan offered upfront coverage for continuing glucose monitorin

filing shows that warren buffett's berkshire hathaway has cut its stake in the company to under 5% as of the end of august that means berkshire could sell the rest of its shares without further public notice. so you're on notice. >>> japan's renaissance struck a deal to buy idt. who is renaissance a sluemicon dublgt educsemicond >>> and casey's general stores, look for that stock to rise. better than expected second quarter results. same-store sales rising. >>> let's now get back to your top story, that's the category 4 massive weather alert. hurricane florence gaining strength in the atlantic as it eyes the carolina coast. it's projected to make landfall by thursday, mass evacuations already under way ahead of the storm. jack deangelis is heading into the storm. she joins us live from carolina beach, north carolina with more on preparations. >>> good morning what a difference a day makes. when we got here yesterday, it was sunny. people were walking on the beach. they were swimming, eating outside. this morning the air is thick. you can feel the moisture. the boardwalks are all wet,

the majority of the cuts -- >> the tax cuts favored berkshire hathaway. >> is this the basis for a long-terma little bit of a sugar rush? >> well, it isn't a sugar rush but the question of who you tax and how you handle expenditures and what government should expend it for, but there's no question that corporations, owners of those >> i learned berkshire bought up more apple. correct correct? >> not a huge amount. we own more than june 30 but not a lot. >> that's 21 plus percent of berkshire's portfolio. you like apple. >> yeah. >> here are my two questions on apple. is there anything that apple is doing right now that makes you think that it won't eventually lose its dominance, the way that ibm did? >> that's the question. blackberry, aol, name all kind -- slide rules, typewriters. any time you have a magnificent castle on the hill, people will try to take it away from you. >> you wouldn't buy it if you thought the castle was falling apart. why do you like tim cook? why do you think he's so effective? >> i don't know what's in his genes or anything. but he is a very, very good manager. just

let's see how travel travelers is doing that is a dow component up $1.01, berkshire hathaway through its subsidiaries they re insure those are the insurers to the companies moving higher by three quarters of a percent. progressive is down nearly a percent and flip it over to cna financial corp. we can see that cna is up 1.5% american international corp. and when you see some up some down we still don't know what the damage is going to be so american international group is catching a bit here up nearly 2%. well the wrath of florence is expected to last for days as the hurricane category 1 hurricane comes ashore creeping pace of just six miles an hour. it's not just the flooding that has residents concerned but the power outages for more than half a million residents in the carolinas, take a look at this transformer exploding. you can see it flashes a green light after the sparks come out, so we gave you the number 634,000, without power but remember, that duke energy which is based in north carolina had said to us with 4 million customers they do estimate one to 3 million people could

the largest position now in of course the berkshire hathaway portfolio of stocks and let us listen ino what warren buffett told fox business on thursday about an analyst's suggestion. let's listen. would you suggest that apple get into, or would you support it? >> i support tim cook. i think it would be a very poor idea to get into the auto business. it's not an easy business. liz: he says one minute you're up, one minute you're down, sort of like the insurance business. >> know what i wonder? i wonder if warren buffett will give him the money. let me point this out. warren buffett has bailed out goldman sachs, i think g.e., bank of america. now, they were incredible terms. remember he got out of goldman sachs, $15 a minute or something like that? he made out like a bandit. liz: they needed the money. no one would lend it to them. >> do they go to warren and say give us some money here. liz: talking tesla? >> i have heard it. i have heard it rumored and speculated. i'm not saying it's going to happen. you don't think so. why don't you think so? liz: i thought you meant buy tesla outri

i mean, maybe when amazon and jpmorgan chase and berkshire hathaway get together, they'll have that kind of clout, but, you know, whether the market and these market manipulations can do it, i think secretary azar today said you need to give it i mean, my feeling is, yes, maybe some of them would work overime, but we're running out of time here. people are hurting right now, and these prices are extraordinarily high right now. >> woodruff: the other thing we see about drug pricing is frankly a lack of transparency. we don't see what it is inside these companies that is leading to these price increases, do we? >> no, and in tk number of politicians have called for that. a number of states are callingic for that, is interesting. there's a lot of action at the state level right now.a ate is saying, if you want the raise prices, okay, explain why you need to do this. we want a justification. so far at a federal lev, it's been kind of willy-nilly. why do we raise prices? well, economists would say because they can. >> woodruff: it sounds like you're saying in the near term we're not going tse

warren buffett is the largest shareholder through berkshire hathaway they went limit up, they went 9.9% and can't go to 10% however, it's not retail stores. instead it's all of the businesses or tenants that amazon cannot amazon so pet care, veterinarians, massage therapists, hairdressers, gyms, personal trainers, tanning salons these are things that will exist no matter what a company like amazon does on the internet. store capital locates these businesses and they say, knock knock, we will let you free up the capital you have trapped in that real estate we'll take it over, you lease back from us by the way, there are tax benefits also they're actively managing that portfolio so when they see a tenant in trouble, they can get out of the building if they need to, find a new tenant or both by the way, this management team was vetted originally by howard marks at oak tree so you have the two smartest investors alive, buffett and marks, and i think it's just an absolute home run for a ten-year hold and i've been accumulating it steady. >> good stuff. thank you guys, both. >>> more coming t

when did everyone decide to be berkshire hathaway what did they earn $18 a share?st preparation business. buying the test prep business of baron's. terms of the deal did not disclose kaplan formerly owned by "the washington post. that's an interesting deal there. >> berkshire hathaway is 3 324,000. >> they're getting expensive aren't they? >> they're up there. they started down in the 30s yeah >>> all right. one company watching the trade wars very closely is polaris brian sullivan joins us from huntsville, alabama. he has a special guest good morning again >> good morning. we wanted to come to huntsville because this is where the polaris ranger is made all made in america sold mostly to americans made by americans with mostly american parts but yet still impacted by tariffs. let's find out why joining us chairman and ceo of polaris scott wynn >> thanks for being here we have a wonderful workforce here make great products but certainly dealing with a few issues with the latest trade war. >> okay. let's talk about this. here we go you said something to me that was v

the japanese government, and whether guaranteed or not, a lot of the big players, blackrock, berkshire hathawayhey went south, there would have been a lot of disruption in gold. back then, not only did you have the big banks but then he may and freddie mac, aig -- fannie mae and freddie mac, aig, too big to fail, have we really solve the problem at large with institutions explicitly on the government's dime, and those implicitly guaranteed, which creates situations like fannie mae and freddie mac where bondholders lent money to fannie mae and freddie mac even though they knew they were undercapitalized and took too much risk because they would be bailed out. how many other institutions still look like that today? continuing this centuries-old cycle of boom, bust, bailout. alix: not just banks. this is just the leverage loan and junk bond market. there is a lot more money out there. since 2008, how high we went in 2017. my concern is that the leverage not reflected in this chart. shadow banks. banks that have offshoots they are lending to risky areas, private equity, because banks were regulated

the us it has come under pressure from activist investors. 10 years ago, warren buffett's berkshire hathaway buy a 25 percent stake in chinese maker byd. that investment has soared more than 500% since and is now worth roughly one point $6 billion. byd is his most valuable holding in a publicly traded company outside of the u.s. it is also china's biggest maker of alternative vehicles. merck has changed a policy calling for its ceo to retire at 65, which will allow the current chief to stay on longer. fraser turned 65 in december and has agreed to stay on. that is your bloomberg business flash. alix: joining me now onset is luke kawa, our cross asset reporter. taking on more risk. this is an index that tracks risk appetite, 18 different components. it's been rising but a nice shoot up the last couple of days. what does that tell you? still feelpeople comfortable in an environment of rising rates, rising real rates. this is not a threat to the expansion. these trade issues, rising oil, rising rates doesn't matter because the outlook for american corporate's is presumably good. you are startin

. >> and when you are through, does it look more like a holding company, of berkshire hathaway stylecompanies,ee big and then we have a way to go in financial analysis. then we have infrastructure. there is a big difference. in aerospace we are trying to consolidate. then we have the tourism sector. >> your recent results show a pretty strong jump in profit -- what is driving that? i think all of our companies are focusing on profits and cash flows, and it continues to do well. apart from that our indian business is also -- businesses are doing very well. >> jaguar, land rover kind of a dark spot in your results. what is going on? they are both strong companies over the last 10 years , they have done really well. but the industry is going through a few major -- i don't want to call it headwinds, major things going on. and for them because they are in the u k they don't know what will go on with brexit. so there are three or four things all happening at same , so they have to deal with and they will be looking at products from withrent markets allocation between different platforms. b

filing shows berkshire hathaway has cut its stake in phillips 66 to under 5% berkshire could sell the public notice. >>> this week marks the tenth anniversary of the financial crisis as you probably know by now. we have a special documentary that premieres tomorrow night at 10:00 eastern time "crisis on wall street: the week that shook the world." jpmorgan ceo jamie dimon spoke to andrew about the weekend that led to thedemise of lehman brothers and how he was preparing for a financial catastrophe. >> i think i was driving home. i called up my home operating committee. i told them we're about to have a catastrophe take place, all hands on deck the next day i think it was saturday, everyone was at work we had workforces and teams going through every part of our exposure, which we'd been through before i think i called my board that saturday and said we have a national emergency and i told them what it was. i explained how bad it was going to get >> when you told them how bad it could get, what did you tell them my opinion lehman was going to go bankrupt, that it might be a domino effec

actually injured in that and, again, relationship with cuba changed that was one of the reasons, berkshire hathawayns less than 5% of the stock berkshire one of the biggest shareholder phillips 66 up 12% so far this year. maria: thank you so much coming up kansas city royals hall of famer george brett joins us visiting american troops in the middle east this morning, we'll be right back. ♪ do-or-die, ♪ nah. not gonna happen. that's it. i'm calling kohler about their walk-in bath. my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help. huh? hold one moment please... [ finger snaps ] hmm. the kohler walk-in bath features an extra-wide opening and a low step-in at three inches, which is 25 to 60% lower than some leading competitors. the bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. kohler is an expert in bathing, so you can count on a deep soaking experience. are you seeing this? the kohler walk-in bath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage. everything is installed i

billionaire who spend the money on politics, and on the energy side, nv energy is owned by berkshire hathawayich is owned by warren buffett. one of the list conservative billionaires in the country versus one of the most liberal billionaires in the country. host: and we are talking about candidate donations. how does the candidate spending compared to the ballot measure spending in 2018? guest: california is frick only one of the highest priced states for ballot measures. thetop three most -- sorry, overall spending on ballot measures so far this year is about $129 million, the last time i looked a a few weeks ago, so it will be higher now. but $129 million is more than the two parties and outside groups have spent on the three most expensive senate races this year. the ballot measures in the campaign world, you can, we have made a decision as a society to restrict conservations to candidates because you might be able to influence a candidate, but we can influence a ballot measure, it is yes or no. so there are unlimited giving in most states, you can give as much as you want to an initiative

-- berkshire have to raise, hathaway's, they have more flexibility. nonbank players. we go to annual meetings, we asked a lot of questions. proxy, bankl of the executives and ceos get paid more for showing better returns versus growth. we like it when the incentives are aligned with the wallace and pocketbooks of top executives. what kind of banks do you like? have a regional banks exposure. they have been challenged by slower loan growth. there are good regional banks opportunities. comerica we added recently. names have been busy -- mikeiciaries as identified, like morgan stanley. alix: it's going to be more cost efficiency, pay ratios, how does that get you excited about owning a bank? burns: nobody thinks dividends are exciting. that is the key thing that does drive us. we are with the banks, looking for firms that are growing dividends and growing them aggressively. i mentioned comb erica. they raised their dividend. they have a buyback of 10%. morgan stanley is another one, even though they did get a slap on the wrist, they made the decision to