the berkshares, from what i read, it has done a great job, 400 plus, and businesses at the berkshires, and it's a local program. they're not trying to expand it nationally or even regionally. so i don't see right now it being a problem as far as competing with the u.s. dollar. it's more keeping the money local. problem is starting a new one really is getting from both sides, people who want to use the currency and people who won't accept it. if you don't have enough businesses that accept your currency, people don't want to exchange their dollars into whatever currency you're starting, so i think that the most important thing from the start is to get a good core of businesses that will participate. >> i'm assuming that was aimed at me? >> i guess i can say that because it was named at mazacoin. if you have a coin, and you want to trade it in for mazacoin, we're going to be establishing walk up changes. a variety of crypto currencies, so if we try that with our casino operations, it's conceivable a person could come up and trade their bitcoins for mazacoin very seamlessly. if you win a

the successor will come from inside berkshire. sses we have a shot at evaluating a lot of talent. there is a lot of talent there. and some of them would have the talent to run the place overall. others wouldn't. they're more specialists in their own business. but particularly then when combined with todd and ted who bring an investment perspective, which is useful in acquisitions, analyzing acquisitions. i think we're as well equipped for the next century as anybody. >> you mention both todd and ted. i assume you look at the potential cio part of your job, that someone could take on as a handler. >> those two could. there could be a third person but i'm not looking for one. >> as ceo, would it be a woman. >> not at present. none of the candidates, no. the top candidates now are men. >> and those candidates, has that been a list that's changed over the last year? >> doesn't change very much. it's very slow to change. they shouldn't be on the list if it's quite changeable. >> right. let's talk about some other issues that people have

despite record profits for 2013, the berkshire underperformed the s & p performance and the index fort five years. warren buff xet plaiett explain is tough off to beat the s & p 500 in high times. >> we always do better in markets that are moving up moderately or we do in markets that move up a lot. there has been one year in the last 49 when the markets -- were, were well, any, any year, that we have fell short. the markets were up 15% or more, except for one year. so we just don't do well, we, we, like to have one bthe head r than the tail wind. would look to thank warren bi . buffe buffett. monday, see if mcdonald's bounced back. monday is target'sline to submit documents to congress. and rupert murdoch will celebrate his 83rd birthday. wednesday, the worldwide web, turns 25 years old. retail sales are due. and friday, consumer price index out for february. that's the show. i'm becky quick. thank you for joining us. my guest next week, businessman, jack welch on the economy, markets and state of am can buo american business. each week keep it here, we're "on the money." and i will

in his annual letter, the berkshire hathaway ceo praise the virtues of long-term investing by disclosinghat he bought a piece of new york city property some years ago and found out he is the landlord to a string of retail shops in lower manhattan between a and eighth and 9th street near nyu. warren buffett invested $1 million in 1993. there is something else that we land. who was the family that helped to lead the purchase of the family -- project? a mall can family, the -- the malkin, the same family that operates the empire state building. groupew this nondescript of stores it be a meeting place for titans. talk to us about this investment is noah who covers berkshire hathaway for bloomberg news. i was talking to other property developers and they said there was nothing remarkable about the deal. do, buy and what we hold investments, and a payoff. >> the other interesting thing to notice is when they bought, and that his 1993, and who they from, -- bought from. that is a key component. if you go back to the letter and what he said there, he really highlighted how the property had not b

i think investors are following the sentiment around berkshire hathaway and warren buffett after thereleased. he was talking about asset allocation, being the single biggest defining factor into whether or not investors are going to be rewarded for holding berkshire hathaway shares. be doing aseems to pretty good job. you talked about some of his investments, like nevada energy. he also talked about heinz, and the partnership with dream -- three g capital, all ways to intelligently allocate that capital. >> it is a huge things that andeholders care about, he spent a lot of his letter talking about ways that berkshire hathaway can -- >> $30 billion, i want to hear about -- i hear he wants to give up $20 billion in cash. tonight, andeep write a lot of insurance contract that can result in big planes. he liked that cash discussion. there are all sorts of risks that can be taken on, that they want that fully -- $20 billion for. at the end of the year because the $20 billion in cash. >> where is the speculation on where the next target maybe -- may be? will it be a self-sustaining one lik

the bet? which has performed better, berkshire hathaway or russell 2000. >> well you know i think buffett hearde must have heard about our bet, just the day we put on the bet, buffett, berkshire hathaway started to rally very, very strongly even as u.s. small cap, russell 2000 etf which i bet on, against buffett has essentially remained stagnant. so thus far it is very much in berkshire's favor. 10 years is a long time. i'm pretty confident that u.s. small caps will outperform u.s. large caps over the next 10 years and i'm quite confident that's the way it is going to stay over that longer period of time. cheryl: are you confident that the small cap stocks names can actually outperform the s&p over the last decade? certainly has ininverse last 10 years? going forward you think this is lot of momentum for bigger names, dividend paying names? people want guaranties these days? >> sure, sure. the most, one of the most fundamental things in finance, kind of rules of thumb that stood the test of time is what they call the small cap effect this. goes all the way back to the 1920s, 19 teens, since sta

the translation, too. warren buffett released his an july shareholder report last weekend. even though berkshirefifth straight year, the firm boasted both record full year and operating profits. courtney reagan joins us live from cnbc hq with all the details. courtney. >> good morning to you. oracle of omaha has done it again. warren buffett released that annual letter to shareholders this past weekend, which revealed another record year of profit for the firm in 2013. despite underperforming for the year, berkshire raked in a full year profit of $19.48 billion. that was an increase of 31% while operating profit was 20% at 15.14 billion. net profit rose nearly 10% to around 5 billion and revenue jumped as the businesses benefited from the improving u.s. economy. buffett wrote, i have always considered a bet on ever rising u.s. prosperity to be close to a sure on thing. he says, quote, though we invest abroad, the mother lode of opportunity still resides in america. buffett indicated that more acquisitions that i well be in the country's future saying he remains on the prowl for bigger guys after

the public offering. shares falling 9/10 of one percent. warren buffett missed his target at berkshire hathaway for the first time while berkshire underperformed. he doesn't expect that to happen .gain berkshire posted results over the weekend. is innual meeting nebraska in may. microsoft's new boss has announced his first major decision. he is shaking up senior management in an effort to reignite growth. the man passed over for the ceo job is leaving microsoft. ukrainianction to uncertainty. at commoditiesg right now. today charts we have. look at where we are. 103.76. one dollar 30. gold $12. this is where we were when it closed and where we are at this point. above 13.30 an ounce. that is pushing up with a down day. very sharp gains in sydney. here are some of those names. new crest mining and resolute mining. sharp gains. back to you. >> thanks, david. our reporters across asia have been taking a look at the struggles people face getting to work across the region. indonesia's capital has a reputation for having smoke the orst traffic. tommy takes us on his typical commute. >> i'm a

right now, company news -- >> in non-ukraine is, a rare miss for warren buffett, the measure of berkshire hathaway, much ofk has risen as the s&p 500 is the first time they missed on their five-year target dating back to 1965. after ringing up record earnings last year, he says he will be looking to do more deals this year in the u.s. the microsoft new ceo is shuffling management. he has promoted mark penn to fulfill the new role of chief strategy officer. he is a former political strategist to work on the hillary clinton presidential bid. skype is also with microsoft. american express debuts its first no see credit card. -fee credit card. they want to broaden its customer base. we have breaking news out oftyco. unitll sell itself korean for 1.93 billion units. to get the week started and there will be a financial effect. it will revise its eps forecast because of this deal. it now sees second-quarter earnings per share when you back out some items, or 89-40 one cents per share on the deal. >> did you sleep last night? >> barely. and 15 minutesur of the oscars and i learned the hard way t

the tension here. do you think that's having an impact inside berkshire? >> no, i don't think so. eat the s&p historically when the s&p is enjoying two to three times its historical average. the time that warren performs and shows genius is when the s&p is underperforming other losing money. then he's able to add the most amount of value for shareholders. it's not a concern. he's up 18%. he's doing just fine. berkshire's a great investment. >> and, jeff, pick up where becky left off on the energy question. obviously, throwing his support behind the keystone pipeline. you expect him to make another big deal in energy here? >> absolutely. he came out and said in his letter, he talked about the deal they did last year in nevada, e said they'll do more deals in the future. he loves it, he can put capital to work at a regulated rate of return, assured rate of return over the years, and he's going to keep doing deals in that sector. >> on the subject of deals, i thought it was interesting in the letter he mentioned the heinz deal. an interesting sort of scenario because it was almost a s

the berkshire hathaway chairperson network increased to two $63 billion, putting him in second place. carlos slim helu seen his fortunes -- shrink as his companyares of tumbled. mark zuckerberg calls president obama to complain about nsa spying. angry about report to the spy agency can disguise itself as facebook to gain access to users' computers. he says the nsa needs to be more transparent. , amazon prime will cost you more but are the perks worth the extra bucks? we will talk about it. this is "bloomberg surveillance ." bloomberg television and also streaming on your tablet, your phone, and bloomberg.com. we are back with professor chart -- professor charles calomiris momentarily. ♪ >> coming up on bloomberg television, an important interview with the world bank before the spring meetings in april. kim, now with the world bank. great expertise on health care worldwide. this is "bloomberg surveillance ." morning.sy friday i'm tom keene with scarlet fu and adam johnson. up go the prices. so much for no inflation. >> amazon shares are moving a little bit higher this morning. raising

tallahassee up to the berkshires so in western massachusetts and just east of albany so the >>> good, we're between storms. . partly sunny and warmer with mid-60s to low 70s inland. upper 50s, low 60s at the coast. light to moderate rain in your forecast tomorrow and again monday. >> all that weather brought to you by quaker. a look at some of the yummy temperatures coming up. >> yeah. >> we're getting there. >> i like that stroll from the social square back to here. yeah, get a little workout in. feel chipper when i'm over there. >>> coming up "high school musical" star zac efron reportedly involved in an altercation in downtown l.a. new details about what really happened. >>> saved by strangers. a group teeing up to help a young woman in trouble at their local gym. ♪ make a change for a better day ♪ ♪ i'm gonna do it... [ female announcer ] this nation of go-getters seems to be in the middle of a human energy crisis. ♪ take a chance so i can see... ♪ [ male announcer ] power up with the good energy of quaker real medleys. ♪ sweet fruit, crunchy nuts and multigrains. it's how we hel

stay tuned in the next hour, that's when quicken loans dan gilbert and berkshire's warren buffett will us as well to talk about the billion dollar challenge. after the sell-off yesterday, you'll see a rebound this morning. dow up by 31 points, s&p up 4.5 points above fair value. the ten-year note is yielding 2.656%. you did get the yield get pushed down on the ten-year note, back below 2.7%. >>> in our headlines, gm is battling claims that air bag failure in recalled vehicles resulted in as many as 303 deaths. this is still very early in all of this. this is raw data. they're looking at. the cars in question were part of the automakers ignition switch recall. gm says that number was based on raw data from safety regulators. it has not had rigorous analysis. gm is under criticism for the time it took to take action on the switches. >> they are probably looking at huge metadata statistics with air bags. any that didn't go off, they'd apply some formula to how often an air bag makes a difference. >> this is linked to at least 12 deaths already at this point. >> it's millions of cars. >> i

the american consumer. estimates.at sales rising 16%. warren buffett, berkshireorted fourth-quarter profit growth. 10% on gains and insurance units. despite a strong operating performance, another year in which it trailed the s&p. the billionaire chairman and ceo said a fresh goal in his annual letter, saying he could beat the index. no,more, i want to bring in who covers this for bloomberg news. also, russo. , and i have known each other for years. thehave been going to shareholders meeting for how long you fell 28 years. you have -- noah has gone for the last three years. let's start with you and your big take away. >> a confident letter. a bit educational. he wants us to understand just how much value he has created. the question about the out performance and underperformance s&p over five years is quite irrelevant from his perspective in this report. but to let us know geico has a $20 billion increment to goodwill if you accurately valued the business. it is very important. those types of numbers reinsurer -- reassure investors. his general comment, intrinsic

our show you can go to our website and follow us on twitter. >>> the oracle of only ha admitted he doesn't always get it right, berkshire hathaway under performed the s&p 45u678ed last year. it under performed the index for the last five years. warren buffet explained why it's hard in tough times. >> why we do better in markets moving up moderately or the down markets that move up a lot. there has only been one year in the last 49 when the markets were, well, any area that we fell short, the markets were up 15% or more except for one year, so we just don't do well. we like to have had one better than the tail wind. >> i'd like the thank warren buffet for his time. by the way, here are the stories that are coming up that may move the markets and impact your money. mock donald will report same store sales. we'll see if they bounce back after three straight declines. monday is target deadlines to submit documents to congress of when exactly it learned of the security card breach. >>> on tuesday, rupert murdock will be celebrating his 83rd birthday. thursday, retail sales for the month of january are due and on friday the p

goldman sachs and jpmorgan are among the underwriters and berkshire will trade under the ticker symbol v i r a t which will be trading on the nasdaq. ipos this year, something that will continue, a lot of new companies coming to market. adam: the war of words heating up in ukraine as we draw closer to its secession vote in crimea. the latest in who the ukrainian prime minister is calling and this is a quote, a gang of fascists. cheryl: ukraine to china, credit suisse, massive stock miles hitting iron ore prices tied. will lowest in four years. we are live on the pads of the cme with a good explanation. we will be right back. nascar is about excitement. but tracking all the action and hearing everything from our marketing partners, the media and millions of fans on social media can be a challenge. that's why we partnered with hp to build the new nascar fan and media engagement center. hp's technology helps us turn millions of tweets, posts and stories into real-time business insights that help nascar win with our fans. a short word that's a tall order. up your game. up the ante. and if

the rise in berkshire. carlos going on with slim? >> his biggest holding has been hit. he was comfortably the richest man in warren buffett was fourth. since then, warren buffett has been on a tagger. -- on a tear. has concernsle about new regulations. >> that has been an overhang for carlos slim for many months, and in fact, several years we have been hearing about this. do you see the divide or the gap between the top three? how does it look? >> gates is number one. he is $78 million. , andthe low-60 billion then you have in fourth place, europe's richest man who is at about $60 million. the gap is closing between it is indeedim. >> and i wonder how much these guys look at the rankings themselves. what are you hearing about what is going on with how bill gates is using his money and how warren buffett is, and how ortega is as well? >> at this level of wealth, what is interesting is they live relatively modestly. worn buffet is known for drinking cherry coke -- warren buffett is known for drinking cherry coke and playing poker. ortega -- >> is he a modest guy? >> they

the west will have to swallow -- that is his calculation. >> thank you very much indeed. big with company views. berkshire hathaway has mystified your target for the first time since warren buffett has taken hold of it. he always thinks long-term. berkshire reported a fourth-quarter income that rose nearly 9.6%. that is $5 billion. the slump in the markets is an opportunity. .hat can open up the company invested $7 billion globally with a focus on the emerging markets. is setne travel agency to announce an initial public offering as early as today. around 350ld raise million euros. ofing up on the next hour boomer tv, we look at the oscar winners, including 12 years a slave. we talked to the president and ceo of the a film production company. we will see you shortly. ♪ >> good morning everybody. we are on the radio, streaming on your tablet, your phone, and of course we are on bloomberg.com. time for today's hotshots. she bounced back in a dual event that took lace in japan. who knew? live action continued in switzerland in the ladies downhill world cup event. big big fog. the active course. bahrain.warme

hathaway fighting a familiar shareholder proposal for the firm to pay, quote, a meaningful dividend. berkshire saying stockholders should vote against the idea at the annual meeting in may. liz: he would say, overhis dead body will he pay a dividend. he said that in the past. and the u.s. and russia remain as far apart as ever over ukraine and russian occupation of crimea after talks between secretary of state john kerry and his russian counterpart did not come with a conclusive ideas. six hours together. crimea is voting this weekend on whether to break away from ukraine. "after the bell" starts right now. david: time to break down today's action. a bit of a roller-coaster day. we have chris hoe bar, hobart financial group ceo with three stocks he says investors should start. joe keating, with picks to add to your portfolio. guy labatt, january any fixed income strategist and dan stesich in pits of cme. a full house today, all good stuff. dan, first to you. insider dumping stocks, some say selling stocks but we haven't seen this levelnsider stock selling in 25 years. is this a concern at all

in other company news, the latest deal for berkshire hathaway and graham holdings, saying that the extentrren buffett tax knowledge, avoiding on a billion dollars, swapping shares, the billionaire took advantage of tax laws to reduce the irs stake despite the public stance the corporations should pay their share of taxes. betty liu is in san francisco today. you know, betty, i just have to say -- at what point does he put his money where his mouth is? he is out there saying that this is not good. he has certainly benefited from carried interest. and he has complained about it. so, why not just pay more tax? >> i agree. i don't know if you remember, but years ago we asked that question to him. we said that if you do not like the tax law, don't feel you are paying enough, just give more of your money to the government. >> he said that that was not the way that it works. we have to change the existing law so that everyone plays at the same rule. but we would not be talking about this story if it was not for the fact that yes, he himself pays a lower tax rate. he said himself that he takes ad

warren buffett missed his target for the first time while berkshire underperformed in the snp over the last five year. he does not expect that to happen again during what he calls full market cycles. was visitedeeting by thousands. top corporate headlines this morning, up next, we have the reform debate. why china might downplay the projections on the economy. you're watching "on the move. >> let's get back to what is happening in the ukraine. ev have put its troops on full alert after russia took over crimea. many thanks, professor, for joining us. does this equate to actual invasion or not? >> it is a partial invasion. it is particularly in crimea. the russians would say that what they are doing is looking after their interests, their legitimate interests, the neighboring crimea, which, according to the agreement they signed recently last year, they have the rights to protect until 2042. so in that sense, there is a certain amount of justification. but having said that, the reasons for threatening ukraine the way they are insane saying that they are protecting russians in ukraine com

well, who better to ask than the chairman and ceo of berkshire hathaway. a vast array of businesses, from the burlington santa fe railroad, to retailing, a lot of different things. as a result, buffett has his finger on the pulse. >> we have had this moderate but consistent growth now for four and a half years and every now and then we get excited about it speeding up and every now and then we start worrying about a double dip and all that. you've heard all this different commentary over the four and a half years. it's been remarkably consistent. the gdp figures maybe bounce around a little. in terms of what we see, i would say that it's been almost a straight line but not at the kind of slope that people would like, but not flat, either. >> today for the first time, we also got the chance to meet with the group of executives buffett refers to as the three ts. this is tracy coole along with the two investing dynamos buffett tapped to take over the endless supply of cash when he's no longer doing it. each of them, todd and ted, each manage more than $7 billi

the swap places compared with two thousand thirteen weeks. there followed by berkshire hathaway starbucks and coca cola. the top ten also includes walt disney and general electric. idealistic sixth place last year dropped to number sixteen cents to use them if you want my kids off to slumber to port and facebook is in thirteenth place. service through a broad consensus among americans that the us is spending too much or too little on the military is it for the three reports. thirty seven percent of americans believe that the nation spends on the military too much. eighteen percent a standstill that of their state spending is about right the global car industry are stable as the chinese new year card industry's offset the decline in consumption with some emerging markets moody's investor service reports. the rating agency expects chinese box but he has to go through a growth of about eight percent while in western europe the car sales will grow out of reach of two percent. electronics plants to cut one third of its staff under the program cost optimization adopted by sta

of anyone winning went to the hostel it was nothing really in the guardian assurance of mobile even ensured himself that his company berkshire hathaway a hazy guys have to pay out the past practice even if someone does get a billion dollars the true winner is quick and allowances getting your and now my info for free washington dc area boring artsy. earlier this week we told you that we told you about the earthquake that hit the lake area remember the tv news anchors who had two cup so cover my bunny ears problems were traveling with the way. well while cheating covered the event live. the l a times feed everyone else with the first online reported how did they do it turns out the role by generating the story who was on line three minutes after the quake aid. here's the first report that i've posted on like this gives the basic facts about the quake were a hit of the magnitude. although an editor did have a chance to quickly proof read the story the play was published. an l a times journalism program that old slate dot com that he created that col griffin be created an algorithm called big box when i think it's the algorithm

>> the -- >> zero. >> berkshire hathaway doesn't pay dividends, either. ng a parallel, to be clear. >> with candy crush. >> right. >> quick final thoughts from the panel tomorrow. we have the durable goods number we'll be watching. >> i want to see the durable goods number. buying a house right now is not a bad thing. the rates are still low. >> you have to pay dolly 6%. >> tune in and catch kevin on "shark tank" minimarathon tonight, kicking off at 8:00 p.m. eastern time. and catch marcus on "the profit." "fast money" coming up in a few moments. what's on tap today? >> have you seen one of these yet? >> is that a -- >> it's a fresh, from the launch today -- >> is that an htc one? >> exactly. >> it looks like it has a big screen. >> this is the phone that's going to aim to take market share from samsung and apple this year. we have them on set with us, with a couple of the phones. and we'll check them out ourselves. >> compare the screen size. >> "fast money" starts right now. live from the nasdaq market site in new york city's times square. our traders ar

here's when asked about the climate change, in berkshire's insurance business. >> in terms of our insurances, no effect in terms of prices we're charging this year versus five years ago. and i don't think it will have an effect of what we're charging three years or five years from now. we have one plan. i think we ought to pay a lot of attention going on. >> guy, insurance? >> like it. a name like prudential. hartford financial on the show. they're okay. everything he says is well and good. but look at stocks, it's really interesting here. traders were lousy today. but it has been a monster of a stock over the last six months. i still like the name. >> all right. the tension between russia and ukraine is weighing on global markets and capturing attention of investors. we have someone here saying there is another emerging market shoe waiting to drop. >>> plus, is global turmoil affecting your next meal? why restaurants may be feeling the heat. tdd#: 1-888-648-6021 there are trading opportunities tdd#: 1-888-648-6021 just waiting to be found. tdd#: 1-888-648-6021 at schwab, we're here to help

of workers say they will spend part of the day checking out the tournament, which equates to 1.2 billion in activity. warren buffett's berkshireffering a $1 to those who hit the perfect bracket. they don't think anyone is lucky enough or smart enough to go all the way. the fbi estimates americans will illegally wagered $2.5 billion on the tournament this year. wager $2.5egally billion on the tournament this year. that money moving around, should some of it goto players? he's the lawyer that one free agency for nfl players back in the 90's. he is representing a group of college player suing ncaa for compensation. he sat down with an interview with our very own erik schatzker. >> right now most of the players at the top level of football and top level of basketball help the schools earned liens of dollars -- earn billion's of dollars and what they end up with is nothing in return. most of them don't graduate. none of them don't get financially compensated. almost none of them have a professional career afterwards. they end up at the short end. the schools would argue that most if not all of these athletes get scholarships and th

berkshire. melissa: unwith of the ways buffett has made money he always has cash when everybody else is desperate for it. whether insurance situation or goldman sachs during the financial crisis and able to charge an exorbitant amount to lend it. >> melissa, he is not playing by main street rules. buffett is calling somebody from the cordless phone in the bathtub which is kind of dangerous and getting sweetheart deal from goldman sachs, 7.5% corporate bond in the financial crisis because they need money. melissa: right. >> icahn is going in, saying, you know what? i'm walking off the street. if you have line one and line two in your office and ceo and buffett and icahn you're taking the buffett call because you're afraid of who is on line two. i like that guy. >> you respect buffett. you really do. you know that this is not a guy coming to shake you down. this is guy who will have some sort of public fight with you to try to embarass you, to harass you,. melissa: that is good point. >> here is the bottom line. if i'm a ceo i have a five-year plan. i don't have a we're going to change your busines

says berkshire has more money than it needs. thepany doesn't pay a dividend because he can generate better returns for investors by pursuing takeovers and buying securities. sony's playstation for gaming console top unit sales, beating microsoft's xbox one. it sold 90% of what the playstation 4 sold. the xbox one generated more revenue because it is more expensive. spending on videogame hardware has increased 42% from a year ago. there is a change coming to the sec 500. changing the same to green mountain coffee. >> larry flynt has been involved with the impediment he of -- with pornography with hustler magazine. he is also involved in capital punishment. new hampshire has become the 19th state to repeal the death penalty. the founder is still the center of this debate. he wants to be heard on the issue. he remains paralyzed after being shot by joseph paul franklin of 1970 eight. despite this, he is always objected to the death penalty being part of the judicial policy. he spoke about the issue with market makers. >> tempers were fl

the tournament. would one of your companies be interested in it? so i thought he was kidding at first. >> it is long odds. if there is a winner. berkshirehaway will pay up. ensuring it for quicken. the winner can choose to receive $25 million a year for 40 years or a lump sum payment of $500 million. the brackets go up sunday night. entry deadline is thursday. good luck. that's the show for today. i'm becky quick. thank you so much for joining me. next week, hot tips for tax season. each week keep it here. we're "on the money." have a great st. patrick's day, everybody. and we'll see you next you used to sleep like a champ, you lay down, clocked off and next thing you knew, good morning. so what happened? life happened. work. stress. fun. bad habits. kids. kids. kids. now what? not milk. not sheep. not that. let's think smarter. let's get some science in here. let's build a bed. another bed? no, an entirely new sleep number bed that tracks your movement, your heartbeat, your breathing. sensors working directly with the air chambers, yeah you need the air chambers. introducing the sleep number x12 bed, the first bed that tracks your slee

reminds me of the time i was with warren buffett, he said let me give you a great stock tip, buy berkshiree stuff? give me the stuff that hasn't had the binary trials. >> the sharks are biting at me at the moment. i would like to draw on another one that i like a lot. that's called intermune. i believe you had the chief executive on your show not too long ago. the stock more than doubled in a day. >> we had him on before that, in january. we had him on again to follow up. >> well done. we think it's going higher still. we think in may it will start moving that way because all the new data that were so-called top lined are going to be revealed in detail at a meeting of the american thoracic society. we are looking forward to that day. we are looking forward to those data. we expect the stock to continue moving up. >> got to leave it there. thank you very much for joining us. intermune and regeneron. what do you make of this? i know sam doesn't believe biotech is in a bubble but it has been a word thrown out there. is biotech an area you are at all interested in investing in? >> you really h

financial firms make up the largest allocation of equity investments at berkshire hathaway. he welcomes payouts from the companies he invests in. president obama has been using his european trip to display unity with european allies, imposing sanctions after action in the ukraine. me. mattingly joins has there been a single overarching goal for the president when it comes to russia during this european trip, and has he achieved it? it.ou said it sounds simplistic, but he is looking for unity on two fronts. first, the sanctions. no shortage of officials are -- on the sect oral sanctions. the other is on nato. the u.s. has argued europe has not carried its weight on the financial side of nato. the proposed investment is 2% of gdp for defense. only three allies have done that, something the president hit on yesterday during one of his speeches. >> going forward, every nato carry its step up and share of the burden by showing the will to invest in our collective defense and developing the capabilities to serve as a source of international peace and security. >> it is important to

because it's really been trading in sympathy with the nikkei, but i want you to think about softbank, beyond japan. think tab as combination of verizon and berkshirelargest mobile carriers in japan, also has an 80% stake in sprint here in the states, which is something really interesting might happen with, either a turnaround or a transaction of some sort. it's also got 34% of renren, a big social network in china and 37% in ali baba, bigger than amazon. could be a $150 billion ipo. almost double the amount of yahoo! but not tied to a slow growth, boring business. i think there's a lot that could work out well here, and i did long the stock and intend to stick with it. wish i could buy it twice. >> can you call it a millionaire boom? robert frank joins us now with a high net worth report. a lot of millionaires and stock market's gone up. >> we have an all-time record for the number of millionaires in america according to spectrum group. the u.s. added 640,000 millionaire households last year. these are households with net worths of $1 million or more, not including the primary residence. we have more than 9.5 million households, this is the first

they would get a number of berkshire shares currently held by graham holdings and an amount of cash in exchange for the. they say a specific number of shares in each company the amount of cash determined on a closing date base odd certain factors. buffett says i am sure there's a mutually beneficial transaction for both companies. our admin ragz for the company is undiminished. buffett's 40-year association with the company has been extremely good for our shareholders. naturally, the deal we put together is one that would be good for both companies. since these are assets being swapped, this is beneficial from a tax perspective for both of these companies. we have warren buffett coming on friday and we can ask him about there. >> okay. last but not least, andrew, we're going to go to break. are you still there, andrew? >> here is what i would posit. i would posit that protecting auto dealers is similar or the same to setting minimum wages and to trying to dictate overtime by the government. it's trying to protect certain ways of -- >> and that's what -- >> and thinking you can do things with jobs and c

but remember amgen went from 1 to 1,000 in the '80s, people that held on -- or anyone that bought berkshiresr. >> once you've taken out the house's money, you can never lose. you took out your house's money and you let the rest run and you don't even have to think about it. it's never going to turn into a loss again that's what you do with american or any one of these. >> we'll have to ask him next time, he just left. >> man, he's terrific. productivity i'm not sure he's on -- >> we didn't realize he didn't have an ifb so he didn't hear rick's question. that was a mistake. >> i was thinking he was thinking it was an attack or something. >> he was here for a couple of blocks and he didn't have an ifb and he stayed longer than we were going to keep him. >> i thought the silence was deafening. >> it was our mistake, we figured it out after he left. thanks for asking. we were able to clear it up. we'll see you in a few minutes. >>> be sure to catch a special interview on "squawk on the street," nike ceo mark parker will be joining the gang at post nine to talk about the business and the launch o

revenues and shore up some of the budget shortfalls and crimea could end up looking like the mac caw of russia. >> berkshire hathaway is said to be reing plans to sell 20% of their hong kong shares. why is it revising these plans now? >> well, the company is facing essentially a balance sheet crunch. this warren buffett-backed company is forecasting as much as a 96% drop in profit in the coming quarter and in fact, its debt levels are at records now. it is a challenging situation as its core products of gasoline-fired engines, those cars are not selling necessarily that you will well. shareses could raste raise as much as $1 billion. it would give them funds to bolster shares in electric cars. profit forecast to drop about 96% this quarter. shares are down today. and warren buffett's investment in b.y.d. is not looking as hot as it once did. take a look at this. there is a silver lining in everything, i guess. it is not all bad news. b.y.d. was sold as the best performing stock of chinese companies listed here. it has done quite well for all of its misfortune. we will see what this share raising means for t

the company. she says to pursue television directing possibilities. also, warren buffett yesterday, berkshireput it price tag on a tv station in miami, buying it for over $1 billion in a stock swap. the station itself is worth about $364 million. buffett in return will be getting some shares of ram holdings, the former parent of washington post. each of these moves sends a signal to the media world, and we want to decipher what the signals are with bob wright, former chairman and ceo of nbc universal and also ran ge capital as well and is a legend in the media business. warrent's first tackle buffett's move into a local broadcasting station. we look on his annual letters and back in 2007, he noted here the opportunity to buy a station in dallas, and he opted not to do that and said he regretted it ever since. he thinks local tv stations are cash cows that require very little investment and just keep generating money from those re-transferees. is that the case now? >> war is very shrewd. he picked an all-time high or current period high to sell his shares in graham holding. graham holding in t

charles: they can blame the weather this time but they have some work to do. record profit at berkshire the rich should be paying more taxes, so wants to talk to about this. how many of those profits go to the government? the guy makes so much money, his company makes so much money and he seems to have it both ways. >> we already know warren buffett's take on the tax system. he has said we can expect even too slow to moderate growth as we have been since 2009. how does tax policy affect the slow growth going on, right, charles? charles: corporate tax policy, higher minimum wage. i don't know how many of his employees work a minimum wage, but it seems weird because i'm one hand he is a businessman. when the country was melting away he was finding great opportunities to enrich himself but he lent his name to propaganda that hurt capitalism that he embodies. >> anytime a very wealthy person talks about tax policy commie have to wonder commie have to think about every income bracket and i am not sure these people in the upper bracket, i know warren buffett is a man of the people on the stre

berkshire hathaway will turn valued6 million shares at about $1.1 billion. they would get theion along with a yet to be determined number of berkshire shares and cash. that'll -- it is a little bit of a swap and he gets to go into the television business. that's not bad. health food craze is not a bad business to be and which has affected every corner of the food industry. e.comays.com -- graz sees huge growth in portion control snacking. you got an announcement? launched in the u.s. in december, we flew past 100,000 customers. they love it and we think the market is a minimum $500 million e-commerce snacks so we will invest $75 million. >> to where? >> it's in the marketing and product development and the technology. to build thee need logistics infrastructure lets us serve the 250 million addresses. >> you are putting that in the states? >> yes. >> why hasn't caught on? >> as you said, there is a product need and that is americans are looking for healthier snacks which they enjoy eating. with our model, we can very quickly create new products and get it to them. >> steve, ar

the report says a number of entertainment jobs in california has dropped 11% in eight years. and war remember buffett says berkshireathaway will still be mainstay of the economy in 100 years. i'm jeff glor, cbs news. [ male announcer ] love drama? don't be a yes man. [ boss ] it is a very smart plan. so we're all on board? [ paul ] no. this is a stupid plan. hate drama? go to cars.com. research. price. find. only cars.com helps you get the right car without all the drama. only cars.com helps you get the right car >> kroft: it was a startling case that made headlines-- an american neo-nazi leader murdered in his home in riverside, california. his name was jeff hall. and he was a burly man, 6'3", a devoted father of five young children, and a plumber who had been unemployed for three years. jeff hall was shot in his living room at point blank range. but, as lesley stahl first reported in september, 2011, what was most astonishing was who shot him. >> jeff hall: we've been through a lot together, some of us, you know. seriously... >> stahl: this is 32-year-old jeff hall. these pictures were taken just hours before he

the fiscal market. everyone points to work should -- berkshire hathaway and warren buffett. ual ownership structure underperform the market. look at what happened to companies like groupon or zynga. the founders maintained controls of companies that are not going so well. those issues are worth looking at. >> cory johnson, our "bloomberg large.ditor at i never understood having a cake and eating it too. >> the billionaire who had to backtrack home depot. he probably wishes he had just kept his mouth shut. >> we will be back with more "market makers." >> you would think that billionaires would have learned by now. to level up as a tax as similar toges hitler and nazi germany. he has since kind of apologized mying in a statement it is choice that is inappropriate and they may well have been. i extend my up apologies. that does not seem like an .ncredibly serious >> how do we learn that especially those on the right, they shouldn't use the word not see? >> politicians, they are unteachable. they have are not to make that comparison. we have another week, another billionaire maki

the auto workers. just an incredible job. >> number four, warren buffett. >> berkshire hathaway is the world's fourth largest company now butseeking leadership is infinite. >> bill clinton. >> what he's done with his aid foundation, north korea, cgi, putting himself out there when he doesn't have to and people love to hear him speak. >> cbi gave him that platform, that legacy that he didn't want when he was in office. >> look what he's done with george w. bush, reaching across the aisle. >> is there a more credible u.s. leader on the global stage you think than bill clinton? >> no. i think that's a really good way of putting it. >> you just said notwithstanding the president, i see bono, i see jeff bezos. >> he brings up the president of the united states. why is the president excluded? >> come on, andy. >> we had no intention of excluding the president of the united states, just as we had no intention of excluding speaker boehner or paul rand or cruz or rubio or ryan. none of these people are on the list. we put together a list of initially say 75 or 100 people and all of a sudden we realized none of these people are on th

the event. if you take a look about how warren buffett's berkshire hathaway went up after its different events, this is becoming like that. people are not talking about higher coffee prices here. they're talking about the miracle of digital and the miracle of customer service done over the internet, done through your cellphone. this is a technology play, a stealth technology play. >> we have been and we will always be a coffee company. but the question that any consumer brand must answer today is how do you become relevant not only inside your four wauls of your stores but on digital, on mobile, loyalty and card. we have a big lead. and that lead has given us permission to play outside of our stores. >> oh, boy, i got to tell you, scott, we don't know what howard schultz is going to announce this afternoon. i've known howard for years and years and years. i have never heard him say to me, look, this one is going to blow you away. he has always been very, let's say, under promise and over deliver. this is the highest over delivery i've ever seen. he is hyped on this one. >> almost wouldn't put it

food service because one of your big points in this is that their margins versus berkshire owen mclean, which is in the, but if they buy u.s. food service the whole story is off. there are plenty of people who think that deal will go through. >> well, that's true, but as i said, you're going to get two or three quarters where you will see what the base business is doing without anything from u.s. food service. i think there the tell will be how the business is really performing, and people realize these are roll-ups and they're able to do a lot of things once an acquisition occurs that makes it difficult to analyze. but we really feel the next six months you're going to see some interesting things out of cisco. >> herb and andy, guys, we've got to leave it there. three interesting names to watch. herb, we appreciate it. andy, thank you very much. have great weekends. i know it's wednesday but it's my friday. >> it's your friday. let's move to pan nar ra. absolutely tanking following a big downgrade. so joining us on the phone is the man who is responsible for all of this, the man who made this call. bo

the bracket, heisman time. no thanks. >> creighton thing, i debated putting creighton high up, it's in homage. berkshire interesting to watch a professional not talk about the fact that his stock has ramped beyond all reason. i figured out why, other than hoopla, you know? >> u.p.s. raising rating 4%. >> fedex reports this week. if ed dispints, repsych toll u.p.s. u.p.s. stock stalled since they missed the boat on the holiday season. u.p.s. represents greater value than fedex but fedex will give you state of the state later this week. impressive company. >> if you raise rates, you better get packages there on time. >> they paid huge overtime. trying to make up for that. >> sears are the land's end spin-off? >> they say that would happen. this is one where hedge funding if manager sells off his good, fund is bad. never a guy idea. but you know what? the oligarchs in the hedge fund business do what they want. everybody's an oligarch, now that putin took over crimea, everybody's an oligarch. >> why do you think the futures look as good as they do? >> i think the gloomsters overplayed their hand. we did not