. 90 minutes, buffett did the deal usually buffett goes to charlie.didn't even bother on this one. he did the deal in 90 minutes. so, you know, the whole thing is a travesty. >> you intimated in an interview or a letter that you knew of somebody who would give the financing without the warrants who was that >> well, i'm not going to divulge that but i definitely knew somebody okay i'll die vul vulge it i would have done it simple as that. >> that makes it more convenient. >> that's convincing. >> did you make any kind of offer? >> i didn't know about it. it was a secret. at least to me she is not going to call me anyway, obviously. i don't think i'm on her favorite list. i'm not going there for christmas dinner to galveston. but, you know, i would say that she definitely could have gone out. look, i have to tell you something, scott in all of the deals i have done, and this is really -- and i'm saying this 100% in every deal i have done, i have always found in talking to people, yeah, they disagree with you, carl. they say this company isn't doing bad

there is no question warren buffett is the best ever. david: value investing is easier done when the markets are down. when the markets are high there are not as many bargains. what have you been doing because the market have been high? john: we were able to buy terrific bargains around march 2009 when the market was bottoming and we got great cbs.s, royal caribbean, as the markets recovered, some sectors have stayed really cheap. media. we love companies like viacom, madison square garden networks, those are really cheap. financial service companies that you know well like kkr. there are some sectors that seem to be totally neglected even as the markets recover. david: the united states economy was in a recession that ended june 2009. for 10 years we have been in a growth cycle. it is one of the longest in the country's history. but there has not been a lot of depressed stock prices for this time, so are you kind of hoping that as -- if some point there is a recession, you can get things at lower value prices? like to buy bargains but w

warren buffett is boosting his bet on the e-commerce giant increasing his stake to 11%. shery: there will be relief for trading today. we are definitely seeing some internal volatility. you can see virtually flat on the day. utilities the biggest gainers. still of risk off sentiment. we are watching a couple of names that are also weighing on the dow. cisco, ge, procter & gamble is moving higher today. for an see the vix going ride and we were at volatility levels not seen in many months. we will take a look at walmart. we are seeing almost 4.5% move higher. shery: it's really interesting to see walmart and the difference that was so important. it's been really interesting to see that discount retail has outperformed both luxury brand and department stores. overall we are seeing u.s. retail sales pretty strong. also the fifth consecutive month of increases. this despite the fact that we are getting lots of mixed signals when it comes to those trade tensions and the trade war escalating. really interesting that alibaba beat all of the highest estimates. they have a high p

warren buffett has up his wager on amazon. perch are hathaway's stake rose 11% in the second quarter. it is valued out more than $1 billion, but it's taken amazon is much smaller than the holding in apple worth $49 billion by the end of the quarter. more from the 13f filings. buffett'se in warren perch are hathaway. his fund took a holding worth $619 million. the famous activist investor's stake is not expected to be an active one. could the u.k. see a caretaker government to block a new deal brexit? that is the plain of jeremy corbyn. he has asked rival parties to support him in a bid to stop boris johnson's plan for the u.k. divorce from the eu. jeremy corbyn says if successful, he will delay brexit and call a general election. india's prime minister has defended his move to revoke kashmir's autonomy speaking in his address on the nation's independence day, modi says special status has only led to terrorism and separatism. willys the recent moves allow kashmir to play a meaningful role in india's ongoing development. global

warren buffett always says last century, the dow started at 66 and ended at 11,000.had two world wars, a great depression, presidents sassinated, and the markets always march back. david: are you not worried u.s. has $22 trillion of indebtedness and we are adding $1.3 trillion a year? is that a concern or not so much? john: not so much. right now, inflation is staying very much under control. interest rates are staying low which means stocks are still undervalued in this environment. we think we always have a way of adapting to whatever the challenge the country faces. my confidence is really high that we will get through the problems that are in front of us. david: in recent years, the income inequality in the united states has become evident. is there anything policymakers can do to diminish the large income inequality we have? john: government needs to do a better job making sure we have financial literacy in public schools, urban public schools, where we can get people exposed to the markets and coming out ready to make the right investment choices, being more ef

warren buffett always says last century, the dow started at 66 and ended at over 11,000. we had two world wars, a great depression, presidents assassinated, it was an extraordinary 100 years, but the market always marches back. david: in the philanthropic area, you are a philanthropic leader in chicago. what are the areas of interest you have in philanthropy? john: we have been working hard on how to solve the wealth gap in our country between majority and minority communities. there is all of this data that shows how the wealth gap has gotten larger, particularly between african-americans and white americans. so we started a small public school over 22 years ago to teach financial literacy in a public school, to get young people prepared to be able to pick their own stocks and navigate their 401k plan and all the things they need to do. most recently, we created a program at the university of chicago for minority students to work during the summer in the investment offices of major endowments. david: your parents were prominent leaders in the african-american community i

david: now, warren buffett coming is he a value investor?n: he is the greatest value investor of all time. some people talk about whether michael jordan is better than lebron james. there is no question when it comes to investing that warren is the best ever. david: ok, but value investing, as i understand it, is easier done when the markets are down. when the markets are high, there are not as many bargains. what have you been doing the last 10 years, because the markets have been high? john: it has been interesting. we were able to buy terrific bargains right around march of 2009 when the market was bottoming, and we got great brands, companies like cbs and royal caribbean, true bargains. as the markets recovered, some sectors have stayed really cheap. in particular, media. we love companies like viacom, and madison square garden network. those stocks are still really cheap. financial service companies, some that you know well, like lazard or kkr. there are some sectors that seem to be totally neglected, even as the markets recovered. davi

as soon as it broke with warren buffett this amazon bet, does it tell us more about what esther buffettiew has shifted, or his view of how much bigger and stronger amazon could be? sarah: i think it is the latter. providing a scalable profit engine and that is a nice complement to the retail business that grows strongly. they have over 100 million prime members and are doing a good job signing up for more. you can see how that complements each other and fits together as a business. francine: how much bigger can and iscome -- become, there ever a to big amazon? -- too big amazon? concern if u.s. regulators think about antitrust law differently. that could be a challenge for amazon. it should continue growing at a pretty strong rate. it has 30% of the e-commerce market in the u.s. and i expect that to grow as it expands into more categories. it is beefing up its assortment. francine: yesterday, macy's missed estimates. what does that tell us about the strength of u.s. department stores? sarah: it tells us they are not very strong. what happened yesterday was not about trade or the health

which is a stunning admission from warren buffett and the guys that 3g. is no sign he is going to sell out but he is obviously not happy with the performance. >> how much shaking that has to go on when you think of the makeup of the foods and the supply chain? what are they have to do to reassure investors? >> the big food companies, they are not nimble. they are supertankers and they make it difficult to adjust to consumer trends and change faster than they ever have with social media and bad diets and everything that goes on these days rid this is a company not set up to innovate on food. it was set up, they took heinz profit and they got the expenses down. at the same thing with craft. they want to do this again and that is the thing that stopped them. as far as growing the brand, that will be the challenge. >> thank you for joining us. from toronto and new york, this is bloomberg. ♪ at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome t

warren buffett company boosted its stake by 11%.d we know they have a big bet on apple. how does this compare? su: apple remains one of its biggest holdings and amazon is a billion dollars smaller. what we are learning from these snapshot,alling for a a sneak peek into the holdings in these portfolios is that his deputies are increasing the tech --dings and shifting away the way berkshire looks of them. they're filing shows a $1 billion share of stake as again the june 30 filing come a we don't know if they have increased or decreased since then. warren buffett again viewed as the value icon for many hedge fund managers. streety the main investors like to follow this, but also one wall street, close attention is paid to what he is holding. if we take a look at one of the bank ofings, he has america, coca-cola, those are among his biggest holdings along with wells fargo at american express. the amazon stake has been boosted by 11% and he cut back a little bit on the food companies. what was also interesting is that one of the hedge f

with the equity markets we were hearing from warren buffett over the weekend.is sitting on a huge pile of cash, saying he does not like the valuations in equities at the moment. do you see value? ben: there is always value. it has to do with the fact that you have earnings that are solid in terms of like you said, companies have highly liquid balance sheets. corporate leverage balance sheets have built up has not really been unbound. companies can access capital. that is not the issue. this example you mentioned from a major investor like warren buffett who has been in this position for some time is a reflection of and certainty people continue to see hanging over the global economy? we are back where we were three years ago, dealing with a very sluggish global environment, uncertainty that is hard to calculate and now the trade war, low inflation environment as well. this is what investors will look at, margins and pricing powerful companies will be driven by the prospect of future inflation. that seems to be muted. shery: how will the u.s. dollar play into th

buffett has been fairly quiet.e a feeling it will kind of stay that way even though he is approaching his 89th birthday soon. vonnie: thank you for joining us. good luck. i'm sure that you will be up a little earlier than tomorrow morning. let's get a check on the major indices. on treasuries we are still lower but not adding to those losses. the s&p 500 holding around the 29.20 mark. worst performer is still noet hewlett-packard, and some of the other computer services companies. the nasdaq down 1.3%. the 10-year yield, 1.87. the two yield, 1.72. amber: for all those that thought they could take an early vacation after the fed rate cut were mistaken. we are awaiting president trump and his new announcement potentially on an agreement with the eu on beef. we will monitor those developments. if you missed any of the charts on the program, you can always v .em on gt v thank you for watching. this is bloomberg. ♪ mark: i'm mark crumpton with bloomberg's first word news. first, this programming note, we are standin

i think buffett, with his time horizon, that's one of the factors he thinks about. is valuations. again last time becky asked him about this, trading around book value depending which stock you are looking at with double-digit roes after the crisis, roes fell to single digits. you are trading alt book value if you look through whether or not there is going to be a recession, which would clearly drag the stocks down, it's cheap. >> in a previous quarter he has been a much more aggressive buyer of bank stocks than this time around. this time we saw small incremental increases in bank of america and u.s. bank corp he has a wide spectrum of bank holdings he pretty much remind his position this time around. previously, you can see that from the change over time, he has been a much more aggressive buyer of bank stocks i think we should take that as a signal that perhaps taking the approach of let's wait and see what exactly happens on the macro side. >> the other point i'd say, all of these are the money centers if you are arguing, oh, those exposed to net interest income

warren buffett who we should mention. >> yes. >> he worked with warren buffett and acted as a mentorhave you been taking advice from him on a regular basis about all that is happened to you? >> just once on this. he was one of the great heroines of my life. david: is understandable. with everything you've been through. >> i met him when i was 13 and i called him rabbi and olevia messages a rabbi is calling. and that's probably the right way to describe a relationship righ.i went to see him on june d he told me you have to do this. and even tried to do gracefully the summer but anyway. >> you're the ceo of a company that you started, you have a board, shareholders, you have employees, i have just got to ask you, why are you involved in any of this, whatever any of this is, i don't know how to make heads or tails of it although i'm sure it'll be a conspiracy theory. but why. you are also a ceo and responsibly, you could've just said, this is not my lane, i'm not going there, and that is not an appropriate division of labor. that would've been honorable and legitimate thing to say. >> i

under accumulation every single day, the freedom annapolis retirement vehicle for almost -- warren buffett is the other person you're probably selling to best of luck or the company. the company has, i don't know, 130 billion, 140 billion amount allocated to buy back hair own stock over the next few years and they retire that stock so as the stock goes back to an all-time high does not meet an all-time high new valuation. not issuing new shares they're shrinking the float so actually it can make new highs in price without having a more and more egregious valuation even if you don't agree that there will be growth for the company, which they continue to find ways to grow, so you could sell to buffett or sell back to the company as they obliterate that share that you used to own or you could sell to the buyers of the spy who will continue through 401(k), et cetera, you're welcome to do that but that is literally what you're doing when you get out of the stock because quote/unquote supplier issues in china or tariffs or whatever you want to do. >> sit next to somebody who got out of apple. >>

now, warren buffett's berkshire hathaway owns 26.7% of kraft heinz. in may, two and a half months after kraft's first write-down which was $15.4 billion, that slammed the stock, i asked warren buffett how he viewed the situation at kraft. >> i don't remember exactly when i heard, but the write-down is intangible. it isn't like money disappears or anything of the sort. it's because we paid, in my view, we paid too much for kraft. we didn't pay too much for heinz but we paid too much for kraft. liz: did you know you were paying too much at the time? >> i'm not known for buying things where i know i'm paying too much. liz: okay. but he said it's not like money's disappearing. well, money is disappearing, at least on paper. buffett's stake worth $15 billion before that first write-down, is today worth $8.7 billion but we need to make this clear. bes berkshire will not need a write-down because it intends to hold kraft heinz until the price recovers. this is not a sector story at all. while kraft heinz stock is down 38% year to date, look at competito comp

because of the favorable warrants that buffett got. carl's actor was that he knew of somebody else who would have done the financing without having to get the warntrants. i'm going to ask him today who that was if we can learn anything on that and what he does next. if there's some sort of an agreement he can reach with the company to get one or two board seats. maybe the company wants to do that to try to get carl to go away we'll see. you said, i have the press release right here, david. moments ago, literally, they announced the closing of the deal not a surprise in any way, shape, or form, as you know. anadarko shareholders wanted this to happen and they voted 99% of them voted in favor of it so looking forward to our conversation with carl >> as we all are scott, thank you >> thanks, david >>> well, meantime, shares of lyft are surging this morning after posting positive q2 results. uber coming after the bell today and those shares are also higher deirdre bosa is in san francisco with a report on the major ride hailers. >> morgan,

warren buffett was a net seller in the last quarter. he sold a billion dollars worth more than he bought last quarter. do you think when you see the beginning of this kind of repricing, and i say beginning, because that is what this monday morning looks like. the beginning of a shift. do you think this is going to be a race out of equities? >> i would think the emerging-market space are relatively unstable, going to see the largest hits. that is where the inflows have taken place. in august 2015, we had a very significant 20% decline. already, we have seen u.s. stocks around 5%. we have seen the hong kong stock market off around eight. some markets have been unchanged because they have relatively consistent and new economic policies and macro policies in place. we will dig deeper into the differential and policy in a moment. stay with us. speaking of the rally in the haven's, equity markets coming off their highs. what is going on in the straight skirmish? is there more repricing to come? dani burger takes a look. >> these headlines cou

my second thing is is there anything stopping warren buffett and all these millionaires are saying we need to get the tax rate, is there anything stopping them from voluntarily paying off taxes towards paying say the federal debt? guest: so no there is not and that goes for anyone. if you feel so inclined you can send the treasury a check and they will accept it. where the conversation is coming from, the patron millionaire group saying tax us more is maybe you have a handful of people that say i want to put this down payment on the debt or pay for info structure project, but in terms of long-term sustainable growth in terms of where is the tax money going to come from they are saying we have to make it a law, we can't just volunteer or some sort of charitable thing needs to be set in stone. host: what does the irs defined as wealthy and how many of those types of people exist in the united states? guest: they don't put a definition well -- wealthy or small business. someone in new york, someone earning $200,000 is kind of middle income. but for that you are one of the higher income e

finally in june i went to see buffett. buffett is like my rabbi.nce i was 13 and he was 45. >> i remember you telling me about him when you were starting overstock.com. >> and he's been a great adviser and friend and he is a wonderful teacher and man. and i finally went to see him june 20th and i walked through the story. and he said patrick, he thought for about ten seconds. he said you are coming forward to the public. and i said i've gone to the feds. they'll be digging through. this they'll be furious. he said you let feds do their job. you're a citizen. this country is ripping itself apart. you have to come forward i gave him 20 minutes of counter arguments. i said my lawyer's head will explode. he said what else have you got? your country, it's never been like this in my life. the country is ripping itself apart. you're coming forward right now. so i have. fbi is silent. the fbi is. >> reporter: honorable guys. i'm sorry that it came to this. it was all hijacked from the top whathijacked from the top? what does that mean? >> by x, y and z. >>

one has to wonder at what point -- well, certainly warren buffett is a significant owner here i pointed out about tensions he's denied it i continue to hear it in terms of buffett and 3g and where the relationship stands. take a look at that stock, jim it's down 14%. >> suboptimal situation developing there it's very interesting the ceo has said something on the conference call that i really like talking directly about the idea that they're going to develop a strategic agenda >> oh, good. >> what were they doing before we're going to sell a lot of cheese whiz. honestly it's a collection of brands that millennials actually would like to take baseball bats to >> sometimes it feels like it would be so easy you have been talking about those brands sarah eisen has for a long time, how unwelcomer th they are in millennial households. this stock has done nothing but go down. >> if they madean acquisition of spam, it would really complete their incredible set of brands >> a negative 3.3 percentage impact from currency they're getting hurt there excluding that impact, the reduction in adjusted,

audi is said to be in talks to add warren buffett-backed byd for its battery.hey plan to deliver fully electric cars with more than half in china. they plan to lift -- list the battery business to raise funds for expansion. paul: saudi aramco is reported to be reevaluating plans for an ipo. dow jones says it is considering a plan to split what is expected to be the biggest ever share sale in two. following up with an international offering next year or the year after. aramco appears to be looking at tokyo for the listing. kathleen: more pressure on korea's largest company as it navigates the turmoil of a trade war. the supreme court overruled the decision to suspend a prison sentence and is sending the case back to a lower judge. he was arrested in 2017 and spent a year behind bars. the new ruling means he may eventually returned to prison. paul: the reserve bank of india raised its gold holdings by more than 9% of the ending in june, its biggest bridges and newly a the r.b.i. fought despot more than 50 tons of gold less year, raising total holdings to 618 tons

vonnie: warren buffett staying in cash, happy to park there. what would you be doing with any cash reserves right now? kevin: mr. buffett's perspective is to look for value. a lot of things don't look incredibly cheap. the paradox is the things that look cheap have not done well. if you look at the market over the last 30 years, price-to-book to return on equity, it looks extensive because the returns on capital are higher than they've been. most of the sectors are in line with that. we are relatively neutral to the market. aggressiveto be too because of these shocks. looking into fundamental plays, consumer discretionary her, underweight internationally exposed sector. not really piling into the super defensive names. they look more expensive here in august than they did earlier. vonnie: have to get your thoughts on the 10-year yield. a fat probably scratching his head. there are a lot of theories out there. i don't think there is three-dimensional chess happening where the president back them into a corner by inserting the trade uncertainty p

not every bet that warren buffett makes is going to be a winner, but in our good get -- but in aggregatehard to argue with his track record. paul: to get back to the point you made about relative value, i want to bring up this chart. to your point, it does prove that the dividend deal does outweigh what you will get from the rather miserable 10 year trade. but you have to bear in mind, the earnings season's been tempered. we were talking about the u.s. dollar. that does not bode well, either. it does come with risk. daniel: i think so. there is short-term headwinds related to the trade wind issues, volatility around the dollar. but if you go back over the past five years, the dollar has gotten much stronger and has not really caused any sort of economic calamity. i don't think investors should be making their decisions based on short-term volatility surrounding where the dollar goes. it is very likely we could end up at some point with a resolution to the trade war, in which case equities and the dollar could reverse course. i know one of the things you like our small caps. daniel: you l

you look at people like warren buffett, are now investing in amazon.hese are opportunities i think now. maybe opportunity to come out of some save stocks. stocks like proctor & gamble are up 50% here. might be time to take some of that profit and rotate. >> who would have thought about it. warren buffett, 11% increase in his amazon stake. have a good weekend,. >> thanks charles. charles: major industries held when they had to on the downside. buyers are emerging. we'll follow markets tick by tick. later on the show, elizabeth warren is surging while biden is being told to hide out. new data of threats of more tariffs putting a dent in consumer sentiment days after we got robust retail spending numbers. so could the fear of higher prices actually derail the almighty american shopper? we're going to ask our favorite retail expert next. this was me before liberty mutucustomized my car insurance, so i only pay for what i need. and this is me now! any physical changes to this man's appearance are purely coincidental. only pay for what you need. ♪ liberty. l

especially people like warren buffett, he should say, he has talked to me about this. that was legit, i would be on firmer ground, but i believe he believes it. i believe he believes that. that's about as far as i can go. >> juan: you gave him some credibility. okay. college students walking to a class, that teaches them how to be an adult. you have heard that, right? how to be an adult. more when "the five" comes back. ♪ maria ramirez? hi. maria ramirez! mom! maria! maria ramirez... mcdonald's is committing 150 million dollars in tuition assistance, education, and career advising programs... prof: maria ramirez mom and dad: maria ramirez!!! to help more employees achieve their dreams. and with new features and richer stories,d you're from. mom and dad: maria ramirez!!! it can lead you on an unexpected journey... ...that brings you closer to home... it's only $59 to discover your heritage... so instead of telling stories of where you went... ...you can tell the story of where you come from. get your dna kit (now) for just $59 at ancestry.com. it's my special friend, an

warren buffett has upped his share of amazon, raising his stake 11%.d at more than $1 billion, but the stake in amazon is still much smaller than the holding in apple. ackman has taken a big stake in berkshire hathaway. fund took a square holding were $690 million when we are told the famous activist investors stake is not expected to be active. and a great leader, that is how president trump described resident xi jinping in a series of tweets last night. he said his counterpart is a quote good man in a tough business. he ended by saying personal meeting? he did not clarify if he was suggesting a summit with xi jinping. global news, 24 hours a day on air, on tictoc, and on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. matt? matt: thanks so much, tom mackenzie in beijing. vestas is falling after reporting profits that missed forecast. wind turbine revenue dropped. the danish manufacturer also narrowed its earnings guidance closer to the downside. joining us is the new ceo of vesta's -- vestas.

warren buffett says when they go up sharply, they become riskier. going down, they bim more reasonable. >>> another wild day on weight we have all the angels bertha took is lookingty birthers there the nasdaq is still holding above those monday lows, the big caps that sent us down were not unpredictably, chip makers, facebook today was one of the big drags, along with apple as well >>> taking a look at where we are, the nasdaq is only about 6.8% from lows, so it's not a correction, but hardware, off 13%. chips closed right near the lows we saw a week ago monday, still above the june lows, however software getting near corrections, xlun indications are holding up bur but this is the maul chaps, which you this would not by -- nonetheless they are one of the worst performers down, taking out last monday's low, back over to you >>> bertha, thank you very much. seema has a look at the industrial >> caterpillar, boeing down among thers, in total accounting for roughly one third of the losses today. analysts say it's data from overnight which highlights th

warren buffett's berkshire hathaway increases amazon. he turned around on the stock, and then said but wait, bill ackman has increased his shares in berkshire hathaway. walk me through the highlights. sonali: the funny thing about that, berkshire hathaway shares were down quite a bit in the past year, and actually rose just a little bit. i wonder if people worth inking there was some kind of activism campaign going on. david: bill ackman is going to try to do a proxy. [laughter] sonali: that would be the fight of a lifetime. bloomberg reported this is a passive stake, so maybe he just wanted to reap the rewards of berkshire hathaway. my other favorite bet was the ipo stocks, actually. you so all of this poor into her after it had a bad run -- uber into -- pour into after they had a bad run this quarter. taylor: you have all of these new ipo's that we watch with varying degrees of how successful or not successful they have been. you are now starting to see some endowments going to that space. sonali: a lot of ipo's this year were successf

. >> the whole part about -- he said warren buffett advised him to come forward and then he said him and others, i believe, hopefully i'm getting this right, said that you're going to be eaten alive by the political class in washington if you come forward with this. i'm sure they're mulling it over now. >> he's going to get eaten alive by us as we go through the fact checking of it. and that's okay. that's the rigor that a situation like this is going to warrant. and it's easy. you know, we're putting in calls right now to warren buffett and he's either not going to comment or he's going to comment and say this is true or not true. not the underlying story because i don't think he has proof of that. either he has pictures of him and butina or he doesn't. >> but if you listen to asha rangappa, she said, listen, it's not unusual for the fbi to talk to someone about it, you know, especially if you have a relationship with someone they're investigating. of course they're going to try to use you as an asset. >> i'm not saying that that part's weird, i'm just saying overall it's strange. l

especially people like warren buffett, he should say, he has talked to me about this. that was legit, i would be on firmer ground, but i believe he believes it. i believe he believes that. that's about as far as i can go. >> juan: you gave him some credibility. okay. college students walking to a class, that teaches them how to be an adult. you have heard that, right? how to be an adult. more when "the five" comes back. ♪ do you have concerns about mild memory loss related to aging? prevagen is the number one pharmacist-recommended memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. billions of problems. morning breath? garlic breath? stinky breath? there's a therabreath for you. therabreath fresh breath oral rinse instantly fights all types of bad breath and works for 24 hours. so you can... breathe easy. there's therabreath at walmart. family is all togetherect... and we switched to geico; saved money on our boat insurance. how could it get any better than this? dad, i just caught a goldfish! there'

david: let's talk about warren buffett, $122 billion.$122 billion. >> he could buy three occidentals with that money. the person who wrote the story over the weekend, she drew light on that i talking was clever was him complaining about his cash hoard in 1998 and in 2004. even though he was complaining about holding so much money at those times, just after that, he made some of his greatest bets. made american who was the corner seven to the empire and after 2004, we had 2008 when he went to goldman-sachsing and general electric. david: but warren doesn't like to overpay. maybe things are too expensive. rick: it says something about the dichotomy in the equity market. you've got five to 10 companies that have a huge percent and then you have a lot of businesses that are some good businesses but a lot that are more until in the manufacturing sector and industrials are having a hard time. and what is the more traditional usiness is hard to find. that's driving a lot of what us the upside in the equity market today. it's a more skewed equit

i feel terrible, i have been watching for three years, i finally went to see buffett. he's my rabbi, i call him. he said you have to come forward and i said it's going to make some feds furious at me, their heads are going to explode. and he said you let the feds do you their job, you're a citizen, go to the public. this was all political espionage conducted against hillary clinton, rubio, ted cruz, and trump. i was in the room when it happened in the way, i was part of it. i knew i had some of the pieces, i had the pieces of something much bigger. as stuff bubbled into the news, i started realizing i had these very important missing pieces. i actually started trying to help them but i had to wait until there was a return to the rule of law. that took waiting until bill barr got installed, i don't know the guy, but only then did i trust things enough. >> martha: it's my understanding that i should just point this out because some people might be listening and saying how credible is this? we did some asking around and we have basically had the indication that there is e

and bill ackman bets big on buffett. that's ahead in ap fe."ridir i saved hundreds when i switched my car insurance to geico. this is how it made me feel. it was like that feeling when you pull your green sock out of the dryer and then the very next sock is the other green one. and then you pull out two blue ones. and you keep going till you've matched every single sock in perfect order. and the owner of the laundromat is so impressed, he hangs a picture of you next to the dryer. geico. fifteen minutes could save you fifteen percent or more on car insurance. >>> welcome back let's catch you up on stories on your radar today it's rapid fire. here are dom chu, mister rogers and cnbc contributor ron insana. >> there's a story behind it, by the way. out of context >> first up, is harry marcopolis the madoff whistleblower is targeting ge he says the company has been hiding the extent of its financial problems for years and calls it a bigger fraud than enron and worldcom combined. >> put a lot of people in prison over the years i'm just continuing th

warren buffett holds a huge voting majority of those shares.ht warren buffett would be a big battle >> why do it >> shares have been depressed. at the end of the day activist investors are value pray layers they look for things that are cheap. ackman has not disclosed anything since starbucks last year he has not done activist on anything since adp recently sold shares of that it looked like he might get involved with utx, writing a letter to them, to the ceo there, urging for a breakup but then sold out of shares of utx as well. this is part of a broader trend of activists taking a step back. >> ackman is like, you know? i've been doing this for a while. i'm not that great i'll give my money to buffett and head to corsica. >> he is up 50% right now. >> i'm kidding >> why run an expensive proxy fight if you can just kind of invest in good companies >> ackman had some of the great calls of all time. general growth, alexander's. it was just -- i don't know. >> gets hard when you get bigger >> it does what should i do just throw in the towel. give

hit the upper class the way it hits people in the lower rungs of this social ladder so it warren buffett said there's a class war and we've won. you know he was one of these very conscious. wealthy people who knows what that's you going on and said you know of course there's a class war so you didn't create class or you. just talk about it but you're not supposed to i know in this book you mention it as well there's generational pain that arises from events like this just as the grenfell event was dramatic and it was preceded by trauma and followed by trauma. in the same way addiction and much of human dysfunction is based on traumatic experiences which are passed on almost unwittingly from one generation to the next so the trauma of each generation will affect the development and distort the development of the next generation and this happens not because people are meaning to pass on their trauma but because of you unwittingly do so for example this is even so physiologically not just ecologically so they the grandchildren of holocaust survivors still have high levels of stress from you

warren buffett called healthcare -- i think he called itm "the tapew economic competitiveness," if i have that right.ll basi what he's saying is it is killing our balance sheet. >> i mean, this is certainly one of the where all of us agree. it is too expensive, and there are ways to reform it.e i think there fferent competing ideas about how to reform it. i mean, there are dels within medicare itself that have proven successful at bending the cost curve. if you look at medicare part d, for example, it has kept prescription-drug prices lower than it would ha otherwise. the same is true for medicare advantage. >> but here's e thing about medicare advantage. it's an enormously expensive program. people like it because wouldn't you want to have vision and, yo knaring aids and dental? that is really important as you come older. i mean, it's important anytime, but certainly when you become older, but you're paying a these multiple plans. people are tired of having to pay for five different... >> but that is what's kept the cost from growing,ecause there's competition between these multiple

hit the upper class the way it hits people in the lower rungs of this social ladder so it warren buffett said there's a class war and we've won. you know he was one of these very conscious. wealthy people who knows what that's you going on you know of course there's a class war so you didn't create class or you. just talk about it but you know supposed i know in this book you mention it as well there's generational pain that arises from events like this just as the grenfell event was dramatic and it was preceded by trauma and followed by trauma. in the same way addiction and much of human dysfunction is based on traumatic experiences which are passed on almost unwittingly from one generation to the next so the trauma of each generation will affect the development and distort the development of the next generation and this happens not because people are meaning to pass on their trauma but because be unwilling to do so for example this is even so physiologically not just ecologically so they the grandchildren of holocaust survivors still have higher levels of stress from you away and i'm o

the folks on the desk have just said, i do like it and i like to buy stocks, you know, a la warren buffett, be greedy when others are fearful, and i do believe over time their growth will -- if it doesn't necessarily reaction sell ra reacti re accelerate it will stabilize. i think it is interesting. i like the fact they're doubling down and focusing on their business which should be a catalyst in the future by selling caviar to door dash and taking that money and refocusing. >> for give me it sound to me though, even though you like it you think you can get it cheaper than where it is today, you wouldn't jump in here >> you know what i would do -- and that's an excellent question if i didn't own the stock -- and i do own it -- i would start nibbling today, yeah, at this very price because i never know when it is actually going to trough what i decided to do is keep my eye on adding to it, but i do want to, like everybody else on the desk, wait to see at least a semblance of some stabilization. >> it is interesting you have other names on your list and another one of them is a blowup and th

that's what buffett said about bernie. >> well, there's no question about it. it's frightening stuff. but i think the market hasn't started to focus on that yet but let's be realistic. just picture her in the debate next to joe biden when he starts saying some of the crazy stuff he says and whether you like her policies or not, she's a harvard law professor, very articulate, and plays right into the agenda of those who show up at democratic primaries. if she's the nominee and up against donald trump, i think that could be the biggest nightmare for our economy since the depression if she became president. however, there's a very good chance that could happen. i don't think the market is discounting that at all. liz: what has been your best trade this year and what are you waiting to buy when it gets cheap enough? >> well, look, i'm not a trader but i can tell you my biggest positions are alibaba, apple, google and a small amount of facebook. i'm in heavy tech. these are great assets. i'm someone who likes to buy top quality assets and close your eyes on days lik