>> well it's not a tech that is very good business inside berkshire hathaway including the railroad,rn, auto insurance company geiko and a number of others it earns about 25 billion a year and those earnings are growing and apple is having a great year. susan: yes that's right in fact it's the second largest or maybe the largest in single innovates or or in apple and this is from warren buffett who says i don't invest in any technology or anything i don't understand but i guess that changes when you have $100 billion buybacks in stock each year. he loves the buyback and price and his grandchildren are helping out on that one. >> susan: remember cbs i was surprised to find that in there because some would say media stocks are low growth shall we say? >> media stocks are low growth and very inexpensively-priced stock around six times forward earnings and i think potentially apple might be buying the company down the road. apple i think is limited traction and i think viacom and cbs is an enormous amount of programming and apple might be interested down the road and it's bite size for a

warrenwarren buffett's berkshire hathaway pricing higher by a fraction at $331,000. says he has the etf that let's you own a piece of berkshire and other value stocks. 331,000 per share, tom, who can afford that? >> absolutely. liz, we've seen a huge amount of money going into etfs so far this year. a record $410 billion but this etf, vtv, vanguard value etf has seen 1.5 billion come in the last month. berkshire hathaway is the biggest weighting in this etf but the whole idea here is, there is a shift on from growth to value. investors are following that path. with the idea in value is underperform the last five years to a great extent but, when you look at warren buffett's philosophy, it is not how you do on the upside but it is the moves you make on the downside. they have got 128 billion in their coffers right now he is looking to do shopping but he will not buy at these high prices as you know. most of this stocks in that value oriented etf tend to do well on the upside, but when the market corrects they tend not to give as much back. there are only four basis poi

one of warren buffett's portfolio managers at berkshire hathaway is getting a big change in his job description todd combs is taking over next week in addition to the new job he'll continue to manage $14 billion berkshire hathaway portfolio the strong endorsements for mr. combs. but this move does not necessarily improve the chances that combs will succeed warren buffett as berkshire hathaway's next ceo >> here's what's happening senate majority leader mitch mcconnell holding a news conference this morning. he declined to even discuss the possibility of calling witnesses in president trump's eventual impeachment trial. >> i don't have anything to add. i think everything that could be said has been said you all have been covering it extensively. and i think we'll find out when we come back in session where we are. >> some royal news prince charles says his father prince phillip is being looked after very well in a thrown hospital aspirin phillip was taken to the hospital on friday as precaution for treatment of an existing condition. >>> and a tiny isolated community near the canadian border kno

larry page and sergei brin giving up on making their company the berkshire hathaway of tech, steppingt. will inheritchai projects such as self driving cars and internet deeming balloons. alphabet's model was based on warren buffett's hands off style. global news 24 hours a day, on air and @quicktake on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. hurtado.ana this is bloomberg. tom: equities, bonds, currencies, commodities. futures take a bounce off three days of ugly. let's go to cash. upee days down and we are 11, dow futures up 115. francine: stocks extending gains after the news report from bloomberg that china and the u.s. were moving closer to a trade deal. gold and treasuries erasing gains. pound had a significant move. pound climbed to a seven month high because polls showing the tories, the conservatives have increased their lead before the election. tom: i want to put into perspective the last few days, buy the dip, the ugliness of december a year ago, a true bear word,, and this year, my we are going down about 2.4%, and a correctio

david: let's turn to berkshire hathaway, and one of the two deputies for making investments.t a new job. sridhar: he's one of the morstan figures -- one of the most important figures with buffett, one of the key people responsible for running berkshire. if you look at warren, there are four or five key people, and he is one of them. the former hedge fund manager has been with berkshire for almost a decade, increasingly being given a larger mandate. he's played a key role in the whole health care high up between jp morgan, buffett, and amazon. geico, the second largest car insurer in the country behind state farm. he's been doing really well. one thing i would like to see, is he going to change their mascot? every time they come on the screen, i tend to look away. [laughter] david: is that right? you don't like to gekko? what is interesting -- like the gecko? what is interesting to me is this is an operational role. might they be grooming him for something? sridhar: he is 48, so you have to thing about him as a possible viable candidate for berkshires ceo, so it is understanda

esg assets do not include amazon, berkshire hathaway. i think a lot of education is needed. james, give me the bullish case. a billionve taken dollars this year, not huge in the grand scale of etf's, but this is similar to the way i look at smart beta etf's. the things that a lot of beta are getting a lot of assets. the number ones are excluding a couple of assets, securities. some of the companies that eric mentioned, there are some real governance issues with them. it makes sense if you are going tsg that they would be excluded. esg is a lotourse, more developed in europe. >> they seem to be warmer. maybe 5% in europe versus 1% year. a lot of it is regulatory. benchmarks will have to disclose their holdings. also here in the u.s., the products that took in a lot of money, that was a european pension fund. they are being driven toward that. that is why it has taken off more in europe. scarlet: there have been some big numbers related with calls and etf flows. a big number has out there and you put it out to twitter to see if everyone would agree. eric: i was shocked that ma

number five, berkshire hathaway.is hard to not see technology driving the market whether up or down. >> to dig in more, might not be faang per se this year, certainly netflix has fallen off a little in terms of dominance, but nasdaq composite, another example. when you look at it is weighted by market capitalization, a third of the index is waiting, microsoft, apple, facebook, alphabet class c shares, if you go further, alphabet class a how sustainable are these moves and how much of it is really n centered around big cap tech companies. >> the market has it right, these are entrenched platforms, in a long term way going to be able to remain that way and kind of grow faster than the overall economy. that's what the market is saying that doesn't mean any price you pay is reasonable for it i think that's the argument we're having it is not so much are these great businesses, they're valued where they are because we know they're great businesses that's not the disagreement. the disagreement is are we getting overexcited

buffett has tapped a new leader of berkshire hathaway's division. ddition to running geico, he will continue to manage 14 billion dollars of berkshire's investment. geico is the second largest auto insurance company has the best commercials, that's my opinion. he begins january 1st. berkshire is slightly lower today. that's a drop of over $1500, definitely some movement, but let's move on to talk about how we can wind down 2019 and prepare for a new decade to begin. we have several prominent traders that are looking ahead to 2020's january effect. what's that you might ask? it is a rise in stocks in early january that are brought on by the buying of securities sold in december. usually that happens for tax purposes. if you want to get ahead of the game, our next guest is here with some tips and tricks on how to help grow your investment portfolio as we approach the new year. trading chief strategist is joining us now. normally we see you at the new york stock exchange. this is a nice little treat that you have come into the studio. let's talk about t

comes after warren buffett berkshire hathaway wdisclosed. back to you. >> thank you very much and see you again on rapid fire in a few minutes from now we begin today with energy and what has been a brutal year and a brutal decade for that sector and bob pisani is live at the nyse with the numbers. you wouldn't have made much money in energy at all >> any, essentially. let's call it the lost decade for energy investors the s&p up 181%. in the last ten years, but look here at energy it's barely positive it's the bottom of the barrel. up 6% in ten years far and away the worst performing sector in the s&p 500. look at everything else. consumer discretionary, tech and health care, all up 2 to 3030% how about 2020 some argue that the chevrons, bt, exxons, they offer great dividend yields and they do and some are cheap at 12 times earnings maybe, but that's a minority view that that is a buying opportunity. the majority view is that supply will continue to grow. likely up 2 to 3% this year. 2020 with the main unlikely to be up that much. bottom li

second, berkshire hathaway or third, the spy. if you think you know better than those three and you want to fight against them, you are welcome to do that the stock is up 72% year to date there's absolutely no way to steve's point that the fundamentals of apple have improved by 72% this year. understand that that's what's happening. it's not just happening with apple. a version of that story is happening across the entire xlk. big buybacks, big index participation. you want to get flattened? keep doing that. it's not a good trade this year. >> a trade deal with china playing into forecasts for stocks in 2020 as you can guess. joining us now with his outlook is ralph kalakos you are thinking about trade and tariffs how today with this looming on the weekend >> we have generally held the assumption that we do continue to see deescalation on the trade side i think you get some form of tariff rollback ahead of the presidential election. will that happen before monday or not to be seen i just don't see that tariffs go higher markets a

slightly after a big beal on the bottom line but they had a huge run in the quarter helped by berkshire hathaway disclosure of a 6.5% stake. the hold up in face of the mctrafrs but deedra talking about throwing shade but gary friedman evoking we work saying growth without profitability has been unjudge justly rewarded. valueses placed on the mistaken belief that online retail is better nan a store retailers hope for the same valuations and grifo driven by fear as not being viewed as fashionable as allocated capital to unnaturally grow business this results is shifting not lifting seems. driving down margins while physical stores are left to rot. we have taken the road less traveled and believe like robert frost it will take a different difference rh stock doing well. >> and the frost reference very nice. >> robert frost. love it. >> you -- you shouldn't invoke robert frost the genius is that not mentioning the guy's name. he skrupd up the whole thing like robert frost. he lost -- i i'd sell on the back of that at 16 times earnings the stock is relatively inexpensive. it's had a huge run a lot ba

perhaps the market pop is fueling warren buffett's berkshire hathaway. look at class a and class b shares. they are hitting brand new record highs above $335,000 for the first time ever. berkshire at $338,310. b shares at $225.52. why? well, why would they be responding? there are more than 70 companies under the berkshire umbrella and subsectors within that. they have a lot of exposure to china. they do deals in metal, in chemicals. remember, this time as well, we are looking at the stocks of these big conglomerates, a and b shares, and watching that closely. a single gain here of 1.33% means $4,628 for berkshire a shares. this time yesterday, we had told you how middle eastern fund managers were predicting that saudi aramco would hit $2 trillion in market cap as early as today. that is exactly what the state-backed oil company in the second day of trading hit. the record valuation allows the kingdom to thumb its nose at doubters in the financial community who have said even our nyu professor who was here but remember, two days of trading, very thin trad

larry page was hoping to create a berkshire hathaway structure where you have the umbrella company of gives operational independence to google and you get a separate budget for more decent projects. now, the ceo will oversee both alphabet in google. the divided structure they've had, it was constantly in trouble. you have the other so-called bet. they lost $3.4 billion last year. it includes other companies like self driving cars. you have nest which were taken out from other bets and folded back into google. former employees told us this structure was never quite clear. google has always been the tail that wags the dog. perhaps the need to shield the highly profitable google from ambitiouscostly projects is no longer urgent. since creating the him rela company in 2015, google shares have really taken off. they doubled, gaining 95%. perhaps the separate structure for alphabet no longer make sense. nejra: thank you so much. our guest is still with us. our columnist has says that alphabet answers the ceo question but raises new ones. is the ceo ready for the tech hotseat? does the compa

berkshire hathaway doesn't have to make the list either. >> what are you thinking, josh >> are you starting and doing qualitative conversations about these names, like if you are an investor watching at home wondering if they should get involved, the names on the list, where is the starting point >> i mean we do screens. we also talk to a lot of investors and analysts and come up with ideas which are timely and topic am and we think are attractive and offer a pretty good risk reward. >> which would you say is the one they should go for >> i think viacom/cbs, it's ticks i six times forward earnings >> nobody wants it. >> it has a tenth of the market cap of disney, i think ultimately it might be acquired. >> you have a provocative thought in that vain you think that apple could acquire viacom/cbs >> i don't think any time soon i think ultimately it could. i wonder how much traction apple will get with disney and netflix. i think it's a great factory it's pretty attractively priced. apple is 1.2 trillion market cap and viacom's is 25 being >> so luongo that initiates a lot of mna in the tradit

maybe berkshire hathaway people are going to start diversifying to other larger company, correct >> i we should expect to see that and research especially when we talk to customers and we do a lot of talking to customers, in particular with this feature, we see customers' eyes lights up when they deposit $10 or $100, and the entire universe of stocks that they would like to invest in or stocks that represent companies that make products they love is available to them. so like you mentioned with as little as $1, you can buy shares in all of these companies that are worth hundreds of dollars per share, thousands of dollars or in the case of berka, hundreds of thousands of dollars a share. i think that really is amazing for customer, having the entire universe of stocks to be able for them to invest in. >> valentine's dlad, do these l companies realize they have shut out by having these big institutions and without robinhood and others like you, people can't own a piece of america, because they look at the dollar amount and they say i'm never going to be able to buy a share of amazon. >>

investors including berkshire hathaway despite concerns with spending, they may signs of fatigue moderateder. the company has boosted its 2019 outlook three times this year and in doing so, rh has shown it has pricing power. we'll be watching after the bell to see if that momentum continues, guys. back over to you. >> meg, thank you. two minutes left to go let's send it over to rick santelli or a rick on bonds. >> if you look at today, 67,000 on adp, the second worst number in nine years or the third lowest in our non-manufacturing certainly we made the low right after adp but it moved higher and it continued into the range. we've grabbed back about half of yesterday's drop if we look at a one-month chart of high yield, the spreads are widening but it's still very well behaved. bertha, good day in the nasdaq stacked right on top of yesterday. >> expedia is leading the way after the ceo and cfo resigned over strategic differences the board authorized a $20 million share buy back the worst, workday offering some fairly cautious guidance for some of the street and software today is a little b

. >> significant board member at berkshire hathaway and jpmorgan.ong time, very close friend, of course, jamie dimon, went to business school together, no word on plans there in terms of i would assume he's going to continue that's pure conjecture on my part but never -- always a bit uncomfortable to talk about your boss this appears to be -- this appears to be true don't have a lot of details in terms of his decision why, why now. in his early 60s but that's a significant transition in the media business that is going to be taking place potentially sometime this summer >> it is difficult to talk about -- i've known him for years and years and years. and he's a great guy, yeah his family's great i don't want him to go is what i'm saying i don't want him to retire if you can get him on the phone -- >> there is the opening bell, by the way. we can try we can try >> he has so much more to do always said in every profile, he wants to do so much more for charity, so much more for -- >> a lot of chapters to life, jim. not just one might want to think abou

keep in mind, also, the financial sector has about 12% of berkshire hathaway in it. not a bank at all. plus all of those insurers i want to compare it to technology after the 2000 bubble burst. very similar, but took even longer this is the march 2000 high in technology stocks right here going to try it. this goes up to late2017 it took 17 1/2 years to do there. so by that standard, financials have been very brisk in getting back to a record >> and mike, clearly, they've had a great sort of run this quarter, in terms of catch-up, but relative to the rest of the s&p 500, if you compare it crudely on a p\e basis, still very, very cheap >> certainly cheap and certainly with a lot of room to move, to really kind of go anywhere near what the overall market has done in other value sectors >> mike, thanks so much for that after the break, we'll talk much more about the breaks when we sit down exclusively with morgan stanley ceo james gorman no doubt his thoughts on whether his stock is undervalued or not as well as the broader banking landscape. china, trade, and much more.

this is actually the second position that the firm added this year, after berkshire hathaway, which was, indeed, a passive stake. so we'll have to wait to see exactly what they plan to do with this, whether they do plan to do something that's more activism in nature you can see there that the agilent stock price is up 4.6% on this news and pershing square itself is up about 51% in the year through november guys, back over to you >> leslie, thank you for that. let's send it over to mike santoli now for his third dashboard of the day mike, what do you have >> calling this one, oh, flow, you don't. fund floes out of equity funds getting a lot of attention "wall street journal" had a look at that today, as if retail investors are somehow boycotting the big record stock rally this is ned davis' research's rendering of the data. into or out of equity funds, it's been basically negative for most of the last two years the exception was this real rush in in that really exuberant peak we saw in january of 2018. obviously, this is last december when there was genuine flight out of equity funds. i

middle-class families in my district saw their taxes rise, just onee values fall, company, berkshire hathaway, one company got a $29 billion windfall. did corporations give that money to their employees? no. according to c.r.s., the average merican worker got an added bonus of $28. did they invest in new jobs? noh no. so where did the mungo? i'll tell you where most of it went. the tax cut helped corporations buy back over $1 trillion of their own shares on wall street. which gave us a temporary sugar high on wall street. we may as well have bushed that money on the national mall. for, for this, the republican tax bill took from middle class families money they needed to buy their first home, to send their kids to college, to stay in their home when they retire, for this, because capping salt wasn't nearly enough to pay for that bill, the bill blew a $2 trillion hole in the national debt. just as everyone on our side predicted because we used something called math. madam speaker, let's restore the salt deduction, vote for this bill, i yield two minute those gentlelady from california. the spe

is this a hat tip that this is the next guy to take over berkshire hathaway when warren buffet eventuallynk this is a big deal because i think this is a test this is an operational test to see whether tood combs can be a great investor and operator. there are a couple of, quote, unquote, operators in the business that have been flagged or tagged as a ceo of this company. the question has always been in the future whether you would have a ceo that's operating effectively or overseeing the businesses and a separate individual who's doing the investing piece or whether that's one person and potentially if tood becomes it, maybe it is one person. >> and insurance company requires both of those skill sets, right? you get all of the premiums in and you need to invest them somewhere in order to generate the returns down the road. so this is a particularly good way. he's already been running the portfolio. now he can run the company. >> we will see having said that, there's been a huge value in tood sitting down the hall from warren he won't be down the hall now. >> 20 years ago we had jack welch

198 planes and this is slightly different from net jet which is owned by warren buffett and berkshire hathawayn that it democratized private air travel. instead of catering to more business travelers which is what net jet does, wheelsup is more high net worth individuals and it's kind of the uber of private jets. it has a little app, you can book one way private seats on certain planes and flights. i would call it probably more -- it's a more democratization of private jet travel than what you had with net jet. stuart: that will create the largest fleet of private jets. susan: yes. that's correct. 190 planes. stuart: susan, thanks. eric trump, oh, sounding very upbeat about his father's chances in 2020. when i spoke to him, have a look at what he said. will you predict a landslide win against any democrat candidate? >> yes. no question. the reason is everyone i talk to, i ask are we stronger now or stronger in 2016. every single person without missing a beat, without blinking an eye, come on. they roll their eyes at me. it's not even close. you're much stronger now. stuart: he was intense, let