it's not the first time buffett has partnered to do a deal. five years ago, berkshire worked with mars in a $23 billion acquisition of wrigley. and just last year, berkshire was part of an unsuccessful $10 billion bid by coty to buy avon. but new york university business professor aswath damodaran says this deal is all about the experience 3g's team brings to the table. >> the one thing they have going for them is, they've run other companies very well in brazil for a long time. and these are people with a long history in consumer products. >> reporter: others say 3g, like buffett, is in it for the long- haul. >> 3g likes to hold its investments for the long-term, so it doesn't look to, like, buy then sell in a few years like a lot of private equity firms. >> reporter: 3g is run by jorge paulo lemann. he and buffett both served on the board of gillette. 3g capital snapped up burger king two years ago. the fast food chain has been aggressively overseas. analysts say we could see more well-established u.s. brands look to do deals with partners i

talk to you soon. >>> does it pay to follow buffett? let's bring in whitney tealson of case capital. welcome back. >> thanks. >> you own berkshire so you're happy with the deal. >> yes, i've talked to guys paying 20 times earnings for a slow growth mature business, does that make sense? i think it does. i love the deal as having berkshire as more than a 10% position in my funds for two reasons. one is buffett is sitting on easily more than $25 billion of excess cash, earning nothing right now. he's putting a lot of cash to work in high quality business and the second insight that people may not know because they don't know 3g that well, the investment vehicle of three brazilian billionaires who i think are bar none the world's best operating business managers out there. >> whom we rarely hear about. >> they keep a low profile, they're not well-known here but the names george palo lemon, marcel talas and cincopera should be names everyone knows. they've been active in railroads, banking but their main signature deal has been being anheus

buffett is buying heinz?d as a rollup vehicle to acquire other food companies in your view? >> well, first of all, happy valentine's day. i'm a little bit surprised on valentine's day that warren didn't buy a flower company since he already owns a chocolate company and jewelry store chain. but i think heinz is no surprise. he likes family operations, 140 years in old industry companies like underwear and dairy queen. so it's no surprise. >> but in terms of the lo longer-term strategy because we're always thinking what is next, seeing food companies on this notion they might be takeover targets down the line. do you think this is part of a longer-term strategy of mr. buffett's to roll up other food companies? >> i think if he finds value, he'd be very interested in private companies, food companies like mars and wrigley, which were actually pitched to him by my students at the university of nebraska atom has when we pitched potential acquisition candidates to him. he's very interested in long-term well establi

buffett and 3g capital like great brands.continues to grow and in equity and we continue to penetrate new markets. the view is we're still penetrating less than 2 or 3 billion people to. so you can't go wrong with great brands. it's been proven time and time again. mr. buffett and 3g capital are astute enough to recognize that and saw opportunity. >> i want to see family discontent and venture to politics. warren buffett was a fan of raising taxes on the upper income. the proof is in the pudding. what do you think of that? >> well, i don't know. it's hard to argue with the or or -- >> or cal of omaha. we'll choose to say i had lunch with mr. buffett on monday, i couldn't have been more thoroughly entertained and impressed with his knowledge of a variety of subjects including marshal goldburg who used to play for the university of pittsburgh football team. mr. buffett was a ball boy for the washington redskins. our lunch was those kinds of interesting things. while he don't necessarily agree on the tax comment, i pay more than

you know, this is classical buffett. he's buying a great brand, good cash flow, growth opportunity and he is the classical long-term investor. so for him to absorb a little bit of a premium to get the kind of property that he wants is not an issue at all. this is classical buffett. he's sitting on a lot of cash. he says he's really to reload and do it again if he can find a good property. he'll absorb whatever ream yumm he's paid over time and it will be a good day. >> and he was upping his stakes in directv, american express and is gm, interestingly enough. gm has got a -- they've got a european division that has its issues, but that's an interesting idea, keep loading up on that. it is still a very small position i understand. but clearly that could be the precursors. clearly, the automobile industry in the u.s. has come back strongly. there is a long way to go in terms of the replacement cycle here given the age of the fleet. so the prospects for the gm, at least in the u.s., pretty good. maybe asia pretty good. europ

. >> warren buffett is buying heinz. >> jon: jiffy pop and jiffy lube. the two office companies makes sense, not so clear on why buffett and heinz are getting together. i guess it's a strategic value add the acquisition for buffett tour a terrible misunderstanding between him and his secretary. he said get me some ketchup. so i got you a ketchup company. [ laughter ] the point is the financial journalists inbridled enthusiasm for this merger boom is entirely rational because there is no and never be a downside. >> you had the leverage buyout boom of 2007. he had the dot com mania and going back to the 80s the junk bond bonanza. all of these are merger boom as long with them and they all ended badly. >> jon: destroy thes but distill. destroy thes but kill buzz kill who came from the set of madmen. destroy him. he is using the past to predict the future. he's a wizard. drown him! [laughter] so why would the rest of -- with the rest of economy stagnating has there been a surge in mergers and acquisitions. it doesn't -- >> i can answer that question, jon. >>

warren buffett's company, berkshire hathaway, buying time out right here. they called it at 7250. >> yes, they just think it's a great product. he said he was absolutely going to be in for the long term. liz: it's not a classic equity deal where they shine it up. david: we just saw whole foods getting kicked today about 10%. >> that is not good news. david: as you can see, we have very big movements. do not be fooled when we see the dow jones down, the s&p 500 is up a little bit. less than a 10th of a percentage point, nasdaq, the biggest mover is the rest of 2000. it is the individual stocks, we have seen some big movements by individual stocks and we will be talking about coming up. liz: did you see the coal industry sector? lots of natural resources after the fourth-quarter earnings. all gaining more than 4%, 13 full percentage point. david: when you see that it is settling at the lowest level in six months, that is what gives people a lot of concern. it is just about at the 200 day moving average. a lot of gold traders and a stronger dollar. it led to t

will not come even warren buffett, warren buffett himself lower taxes. that is the funny part of this whole story. rich people are reorganizing taxes that they don't think they are going to get. [talking over each other] [talking over each other] neil: i think we have a do-nothing thing. republicans are reluctant to touch defense. >> the only solution is to cut spending. our goal should not be what should the federal government be, it should be wealth creation from americans. the propensity to want to cut spending, whether it's on the democratic side or the republican side, especially when it comes to their programs as well, it is in there. so i'm looking at what you're saying. i am very worried -- i'm worried that we are going to get back to paying just a majority of what we make. >> we are very spoiled in this country. we want everything and we don't want to pay for it. [talking over each other] [talking over each other] [talking over each other] neil: only half are paying their income taxes. we are paying for it. if you are right, people care about th

warren buffett is buying heinz.one of the things that he said, stuart, is that they have great tasting products. stuart: it is a name that the whole world knows. >> we will get above those highs. >> if we do not have confidence in the market, we are in a really bad situation. stuart: we had to heinz buyout by warren buffett and then we have the

warren buffett, he doesn't care about sector rotations. he cares about acquires brands, lasting brands for less, some sort of consummate wholesale buyer likes brands for less. now it's his. who was really complacent here? i say it was the goldman analysts, not the buyers. how about dell? you really think that dell, which supported slightly better than expected numbers, is that that much better than heinz? once again, here's the stock that's been left for dead. nobody even cares, maybe nobody pronounced it dead, yet it simply refused to die, too much cash, too much cunning. heinz has flatlined for a long time. dell has been going down. you know who cared? michael dell cared, and now he's in a huge fight over pennies on the dollar. dell will get his man, because alas his man is dell. virgin media, third biggest deal of the year is once again emblematic of the flaw of the sell the rip strategy, virgin had already ripped and ripped big before it got its bid from liberty. the odds-on move would have been to short this stock, especially in light

warren buffett playing catch up.iness, buying heinz and the merger to greet the world's biggest airline, what your next move should be. tracy: we will go behind the american airlines u.s. merger, what it means to you the traveler. my guess is not good. dennis: co-pilot cheryl casone live in miami. cheryl: ask yourself this, is new york anti business? we have a guest coming up on markets now. he can recruit lots of guys to bring it to florida. he will be joining me. and then coming up at 12:30 eastern time. the state of miami real-estate, a lot cheaper to do business from the real-estate perspective in miami. we do stocks now, nicole petallides dow in the ran a little bit on this valentine's day. nicole: great work in miami. financial firms by the stock exchange heading to florida where it is more business friendly. the dow down 15 points, loss of 1/10%, the s&p and nasdaq pulling back slightly, nowhere near the 14,000 mark, we are thirtysomething points away and we have seen some tough economic news from europe. we h

and this is a buffett -- >> for valentine's day? >> and buffett sent me this tie.r you were out there with him and he took it off. >> kind of -- >> now to react to my tie. >> i ran out to get -- >> what i didn't mention -- >> playing catch-up ball. >> he immediately took a tax write-off for what he sent this tie. even though he loves everyone else. he did say, you know, i don't know what this was worth but i think he did, whatever he paid for it. he wrote it off as charity. which we love him. i wonder, really, whether, i think buffett is different. when he decides to buy. i don't this necessarily means -- but it should, maybe. maybe this money -- >> got in at the right -- you know he's been playing with this for some time. just the timing was right. >> and you know, he could have bought heinz, k-e-t-c-h-u-p but then there's the other one, hunt's, c-a-t -- do you know what the difference is, andrew, and why this one was more attractive? >> is hunt's owned by conagra? >> and there's talks about what -- >> they spell it differently. it's the same thing, basically. >>

airways, creating the world's largest airline company; and warren buffett is buying h.j.e biggest food company acquisition ever. we'll have more on american in a moment, but we begin tonight with buffett and that surprising mega-food deal. the billionaire investor is teaming up with the billionaire owners of 3g capital to buy the ketchup maker for $28 billion. the private equity group and buffett's berkshire hathaway are paying $72.50 a share in cash. that's a 20% premium over heinz's closing price yesterday. ruben ramirez reports. >> reporter: the oracle of omaha now has a new title: ketchup king. for the first time, warren buffett, who's shied away from working with private equity partners, is teaming up with 3g capital in a $28 billion deal--

i think warren buffett is the "oracle of omaha" for a reason. take a look what airline stocks did today. even though there is some evidence that in these big mergers, these big airline consolidation that is the airline stocks do pretty well. in agenda they're not doing very well. they don't seem to like this much at all. what about the new american, the new american airlines? the us airways name, by the way goes away. it goes to the barn where brand any of and american and twa live right now. this new american will have $239 billion in revenue in 2012. it would be 2% larger than ual. it will be the world's biggest airline and better positioned to compete with united in markets like this in chicago. it will cost about a billion dollars to do the merger. they say they will save a billion dollars in costs and 6700 daily flights, 336 destinations, 56 countries. is bigger better at this point? we don't know. tracy: jeff flock out at

the partnership with buffett yesterday for heinz. an increase in sales as well as expense reduction. joe? >> let's go back to our conversation robert kaplan, former vice chairman of goldman sachs and harvard business school professor. and sandler o'neil's jimmy dunne. what we've seen, which has been an improvement, has come i guess once we got over the cliff, and we've done -- there's been a couple of things that we got through. but it's really not any clearer or any less uncertain about where we're going, but, would you say people have come to the realization that, hey, if i'm an investment banker and i'm 56, i don't want to wait until i'm 60 until i do something? i'm not going to wait around until i'm 60 to do something. better do it. >> i agree with that, joe. but, well -- >> can't you just sit there and wait for the world to turn into what you want it to be. >> i've given up on that a long time ago. i don't reallyion stand the uncertainty issue. i think we're quite certain as to where it is. >> you look at the election, three bod

buffett already owns dairy queen and a candy company and he's famous for his love of cheese burgers.o this purchase kind of made sense to a lot of buffett-watchers. >>> senator frank lautenberg the senior senator from new jersey, a democrat, announced today he will not run again. lautenberg is a five-term senator, the oldest serving senator, 89, and the last remaining world war ii veteran currently in the u.s. senate. the race for the seat will be closely watched. newark's mayor cory booker has already filed papers to run for his seat. >>> the president was on the road today. in fact, he was practically on the floor with a bunch of preschoolers. lots of hugs and high-fives in a pre-k classroom in decatur, georgia. a look under the magnifying glass. one of the 4-year-old's asked if he was their teacher. after that got cleared up, there was another reason for his trip. the official business pushing his early childhood education plan which he highlighted in the state of the union address. >>> picture of the day from the world of sports comes from the australian women's golf open. interr

warren buffett -- these guys -- warren buffett is the best that has ever been and perhaps the best that ever will be. he's dimaggio, he's michael jordan, and i think the stock's terrific and i've liked it now for some 30 points. i'm not backing away and you shouldn't either. seems like takeover mania, but don't get caught up, the m&a hype is encouraging, but i sit out the speculation. i'd rather buy the socks at kohl's than buy the stocks of kohl's. don't move, "lightning round's" next. right that's a fifth-floor probleok.. not in my house! ha ha ha! ha ha ha! no no no! not today! ha ha ha! ha ha ha! jimmy how happy are folks who save hundreds of dollars switching to geico? happier than dikembe mutumbo blocking a shot. get happy. get geico. fifteen minutes could save you fifteen percent or more. [ male announcer ] to hold a patent that has changed the modern world... would define you as an innovator. to hold more than one patent of this caliber... would define you as a true leader. ♪ to hold over 80,000... well that would make you... the creators of the 2013 mercedes-benz e-class... qui

warren buffett is not done making big deals yet. the companies on the short list are next. hey, it's me, progressive insurance. you know, from our 4,000 television commercials. yep, there i am with flo. hoo-hoo! watch it! [chuckles] anyhoo, 3 million people switched to me last year, saving an average of $475. [sigh] it feels good to help people save... with great discounts like safe driver, multicar, and multipolicy. so call me today. you'll be glad you did. cannonbox! [splash!] ♪ pop! ] [ female announcer ] during award season, i put together an all star cast. celebrate awardsight with crystal light mocktails. all celebration. no guilt. for every shade of you. dare to leave your lipstick at home. new revlon colorstay ultimate suede™ lipstick gives you all-day color and instant moisture with shea butter and aloe. for food-proof wear and velvety soft lips. >> another budget battle brewing in washington, dc, could mean no blue angel show in san francisco this year. >> the crowds are thrilled each year but the event could be in jeopardy if congress cannot prevent the automatic

airways, creating the world's largest airline company; and warren buffett is buying h.j. heinz, the biggest food company acquisition ever. we'll have more on american in a moment, but we begin tonight with buffett and that surprising mega-food deal. the billionaire investor is teaming up with the billionaire owners of 3g capital to buy the ketchup maker for $28 billion. the private equity group and buffett's berkshire hathaway are paying $72.50 a share in cash. that's a 20% premium over heinz's closing price yesterday. ruben ramirez reports. >> reporter: the oracle of omaha now has a new title: ketchup king. for the first time, warren buffett, who's shied away from working with private equity partners, is teaming up with 3g capital in a $28 billion deal--

we'll hear from warren buffett at 3:00 p.m. don't miss that.f a food guy, right. ashley: he is. tracy: dairy queen. ashley: he buys and likes what he knows. he likes ketchup on his fries. tracy: let's get back to the airline deal. american airlines and us airways teaming up in a $11 billion merger creating the largest airline in the world. american shareholders own 72% of the company which will keep the new american airlines name. jeff flock follows the story for us at o'hare airport. jeff, everyone want to know one thing will ticket prices go up because of all this consolidation? >> you know, i don't know the answer to that question but i do know what warren buffett said about airline stocks. if his for bearers had known what would invest coming in airline stocks they would have shot orville and wilbur down. he is food guy, not a airline guy. you can never be sure what will happen in terms of ticket prices. doug parker, the new ceo of american, says ticket prices will not go up. there will be more competition. it will be more fun for everyone.

what does it warren buffett purchase of heinz mean? very hard to make a larger argument about this. this was the dominant story of date obviously but muff likes dell situation, i think it's very much a one off. there was some bidding up of the other consumer companies, but this is a very big takeover, a warren buffett style company. i don't think you can make a larger argument about the heinz particular takeover. we're up to about $180 million of m & a in the first quarter. >> that's great. >> it's cooking. >> it also tells you money is very easy. it also tells you the m & a crowd, the private equity crowd, it's real cheap to borrow money to go and invest in these companies. >> there's a lofts cash sitting on the sideline. >> but jim pethokoukis, when you do gigantic m & a, do jobs go up or down? >> that depends on the deal. there's going to be some thinking that jobs are going to go down. >> diane, the same question. >> down. >> you're worried about job creation and growing the economy, m & a work? i'm a market guy, i'm all for it. i'

we have berkshire-hathaway, warren buffett's group, buying heinz, the a-m-r u.s. airways deal. what does this mean for wall street? > > i think it is really good. i think it points toward some bullishness in the market, and some bullishness in the m&a market, which is good for everybody. i think that you could see a real pickup in m&a activity toward the end of q1 and into q2, which is bullish the s&ps and dow for sure. > thank you mark. have a good trading day. > > thank you. the merger of american airlines with u.s. airways is the 5th large airline merger since 2001. our cover story takes a look at who wins on the business side and whether consolidation of two more large carriers is good for consumers. american airlines keeps its name, but analysts say it'll be u.s. airways management in charge with increased collaboration from employee labor groups. "i'm hopeful and optimistic they'll include labor, whereas american did everything to exclude labor from their business practices." both airlines have been flying in different directions. since november, 2011, american, operating

george soros, new secretary of state john kerry, and warren buffett, yes, the warren buffett rule.agenda coming up and also on the agenda, climate change and the carbon tax. yesterday the environmentalist made the claim that green energy is cheaper than coal and natural gas. really? we'll get the facts and a reaction to this after the break. >> clean energy, that's also available here in the the united states, that's coming in now cheaper than coal. cheap her than new gas, puts more people to work than dirty fuels like coal and gas. >> wait a minute, wait a minute, wait a minute. but that doesn't mean i don't want to make money. i love making money. i try to be smart with my investments. i also try to keep my costs down. what's your plan? ishares. low cost and tax efficient. find out why nine out of ten large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. all you

warren buffett -- these guys -- warren buffett is the best that has ever been and perhaps the best thatll be. he's dimaggio, he's michael jordan, and i think the stock's terrific and i've liked it now for some 30 points. i'm not backing away and you shouldn't either. seems like takeover mania, but don't get caught up, the m&a hype is encouraging, but i sit out the speculation. i'd rather buy the socks at kohl's than buy the stocks of kohl's. don't move, "lightning round's" next. ♪ ♪ ♪ [ male announcer ] what's the point of an epa estimated 42 miles per gallon if the miles aren't interesting? the lexus ct hybrid. this is the pursuit of perfection. the lexus ct hybrid. try running four.ning a restaurant is hard, fortunately we've got ink. it gives us 5x the rewards on our internet, phone charges and cable, plus at office supply stores. rewards we put right back into our business. this is the only thing we've ever wanted to do and ink helps us do it. make your mark with ink from chase. transit fares! as in the 37 billion transit fares we help collect each year. no? oh, right. you're thinki

. >> warren buffett is ready for new takeover targets. >> good morning, billionaire investor warren buffetts they announced they are buying heinz in a $23 billion deal but that may not be enough. warren buffett is looking at making more large acquisitions. according to bloomberg data he could look add 30 companies including general mills and a hardware supplier which fit the takeover criteria. the supreme court will hearingments in a case involving feed giant patents. a lower court ruled a farmer planted second generation soybeans that were part of a patented feed of the company. they are required to bay the new seeds each year. it could affect other patent technologies. >> and adults going blind could have another chance at sight. the $100,000 device will not restore sight but it will give patients suffering great a rare eye disease the ability to perceive light and dark which can help with tasks such as navigating a sidewalk on reading large signs. >> and, now, we have this work thing. >> how about some hot chocolate to go with the cooler weather. >> we can make some an cakes and eric is

. >> warren buffett said he is not done making big deals yet. the supreme court is set to hear the supreme court is set to hear a case that could i'm drinking dunkin'. i'm just in love with the flavor. i get mine black. i don't want to take away from that pure taste. so smooth, no bitterness. it's awesome. there's no other taste like it. america runs on dunkin' coffee. >> welcome back. 5:15. it is colder in the suburbs and the wind chills are running in the single digits and teens. it is not this windy as it was yesterday. make sure you're prepared for the cold. 19 in jarrettsville. the win is about 8 miles per hour. the wind chill in part to right now it is 5. it is 11 at the airport. it is a cold start. we should see plenty of sunshine. it will be a beautiful sunrise and we should see plenty of sun. there could be some snow flakes mixed in tomorrow. there will be a rain event tomorrow. we will make it into the upper 40's tomorrow. high temperature today between 37 and 42 degrees. partly cloudy tonight and temperatures in the upper 20's and low

. >> warren buffett said today he's buying another newspaper. he's picking up the tulsa world, bringing berkshire hathaway's port pot of small and medium size newspapers to 28. and you know tom, it's really surprising because buffett has told shareholders in the past that the newspaper's industries prospects are so bad that he wouldn't buy a paper and here's a quote at any price. but now last year he bought his hometown paper, the omaha world herald, now this deal sounds like maybe a change of heart, right? >> maybe. a media mogul in the making. he began as a paperboy in omaha so he certainly knows well of that industry, and the woes it had over the past several years. speaking of woes, how about the markets today on this monday back to, without. major indes. the major indices suffered their biggest one day decline of the year with traders pointing to a closer than expected election in italy. there was no clear winner of the italian election, fueling worries about political and economic instability. here in the u.s., the s&p 500 saw its morni ri

will she give warren buffett a run for his money? >>> good evening. we begin with america's secret war. those escalating drone attacks in the air and the consequences on the ground. and the question -- is it making the united states safer? abc's chief global affairs correspondent martha raddatz tonight traveled to the middle east and brings in this report. >> reporter: it is a secret war. and just today, in a sign of how pervasive and how hidden it is, the revelation that america has a secret base in saudi arabia -- used to launch drones throughout the region. a tactic against terror which has grown 700% under the obama administration. whatever the benefit of the drone strikes, they have created enormous resentment among some here in the region, who view the strikes as another sign of american arrogance. everywhere i travel, from yemen -- >> i think americans, they are not right. they have no right to -- it is our fight. >> reporter: to pakistan. >> you can keep saying, yes, you are hitting the top leadership, but the byproduct of this is anger, anger