and it had bill gates and warren buffett's net worth next to countries. and it was showing how these guys -- and i had never even knew that a billion dollars existed, let alone these guys had 20, 30, 40, $50 billion. >> reporter: he became a student of warren buffett's investing philosophy and asked friends on the outside to open an e-trade account. >> my best investment was taser international. dumbest move i've made, valeant. i have snapchat, bank of america. i'm up. if you're talking about money i made myself, just money i've made for people in general, just giving advice and things like that, six figures easily, easily. so even though a dilution of those shares happens, those shares are still there. >> reporter: yep, wall street does give advice for free and has even started a financial literacy group inside san quentin. >> you now have seven shares. you never lose your money. >> reporter: his hope is to some day leave prison. he could go before the parole board in three years, then start a hedge fund and teach inner city kids a better way. >> all cri

warren buffett gave up on golf a few years ago so my primary excuse to play golf is gone away.golfing not much now. tennis has become my primary sport. david: warren buffett called you one day and said, by the way, i'm going to give you most of my money. were you surprised when he said he wanted to give you most of his money to your foundation? bill: that was a complete surprise because warren is the best investor, and he built this incredible company, and he was giving me advice on all things i was doing, and i was learning so much from him. but his wealth was devoted to a foundation that his wife was in charge of. and so tragically, she passed away. then, he had to think that his initial plan wouldn't make sense and much to my surprise, he decided that a part of the wealth, a little over 80% of it, would come to our foundation. so it was a huge honor, a huge responsibility, and an incredible thing because it let as raise our level of ambition even beyond what we would have done without that. by most definitions, the most generous gift of all time. david: you started with the

i would say up there with the warren buffett annual letter. people focus on this for the sector.t's due at around 11:30 a.m. >> you might get a bit beforehand. >>> on capitol hill, the senate is setting itself up on a collision course. democrats assembled enough votes to filibuster the supreme court nomination of judge neil gorsuch. the question is whether or not republicans follow through on plans for the so-called nuclear option. the move is a last resort that involves changing the senate rules so that a nominee can be confirmed with a simple majority of 51 votes instead of 60 votes required. if you change the rules for one candidate? what about the future for future candidates? >> it's a big political talking point. i think it's less important for markets. clearly the appointment of a supreme court judge has less effect on the markets than a tax cut bill, but more importantly the investor sentiment towards realizing that trump is not always going to get his own way is congress has already been priced in by the failure of the repeal and replace of obamacare. it's an interesting

warren buffett is the ultimate capitalist, the ultimate guide guy billions of dollars on, he mild say tongue would've. warren. now he's on the coke bottle in china. do you think they believe he is someone else. he looks grandfatherly. >> he is a sexual god in china. he is a sexual god. his name is the all that of omaha. it might not be the oracle of omaha, it is the all that of omaha. a sexual god. and i'm pretty sure you're wrong about japan and china not being the same place. you should look that up. >> bill: you're saying that their marketing cherry coke isth an elixir, as an aphrodisiac. >> billy, it's like the pineal gland of patrick, the creature on spongebob. it has strange aphrodisiac will powers. >> bill: now i understand. >> i'm out. >> bill: you been to mexico, right? >> that's in china. >> bill: as you know, they've taken bids to building a mexican wall and they're going to build a wall and now -- >> what happened to my hair? >> bill: your hair looks gorgeous. on amazon, you can buy a t-shirt that is mexico wall themed and saying mexico will play. what do you think about t

the great warren buffett, that was on squawk box said if the rates stayed here for a long time tharks the stock market would be not expensive, i think he implied inexpensive. i agree. the trouble is, in the world we live in you don't make 65 basis points sitting in cash and more than 2% in bonds and make 10 orn the stock market. there's a linkage. when you make in sfok market, turn to less ris can ki instruments, so i don't think mr. buffett is buying bonds. he's saying it's going to rise and bonds will have a capital loss associated with it, but i worry ab it. >> it's interesting. the yield. on the ten-year has come down 30 basis points since right before the fed until now and some worry that if it continues on the trend and gets closer to 2%, it could cause a correction of some sort of magnitude within the s&p 500. do you share that view? >> yeah, i would share that view, but i don't know if it was a year and a half ago, ten-year bottom, 140 or 150. so interest rates have been b a soft rise. we're in the process of seeing the fed raise rates, normalizing their policies. i thought no

warren buffett owns it. end of story. pete.e reason we buy it here is this guy isn't going to be getting out anytime soon. warren buffett, that is, so if you're in the stock, you certainly don't like the way the things have been handled for the past week, although they are try ing to turn things around if they can gep kooep the scorpians from dropping out of the luggage bins, but i like the stock. i think you buy it on these dips. warren buffett could buy more add to his stake on dips and he's not getting out, so if he's not getting out, that means it's not time for you to get out sxwlchlt the one u argument i agree with john, he's made a point. buffett, but buffett didn't just buy united airlines . he bought delta, american, southwest as well. i think right now, you look at management teams, that's how you u select your stocks in various areas. the united management team itself is the worse there is in the entire industry, so because of that, i'd rather be delta, which i think is run fabulously. their cash flows are increde b

they wanted jimmy buffett and he didn't want to play so they went to warren buffett.se aren't nomadic people. there is a growing trend to lump together american intellectual and physical luminaries with foodstuffs. i was over at panda express for lunch and i had a picture of him wrestling the dragon labeled tackling tax on my beijing be full. the guy in front of me got the karl rove fuzzy headed trump on a whiteboard and then a special week, they had from the general flynn's chicken. i find it a little slippery and they're also running a special with a side of bought and paid for steaming susan rice. so there was a lot of intermingling between the political people and the chinese food. >> bill: i know you're a world traveler. have you been to china? have you been there? >> it's japan part of china? >> bill: no, it's across the sea of japan. >> i've been to japan and some of it once that was china and i said i don't think so. >> bill: two separate cultures. now china is a very still communist place outside of hong kong, a free enterprise zone. shanghai, beijing, they w

it is what drew warren buffett to your stock. that maybe you have to be the burlington northern for warren buffett, that if you wanted to, he'd buy your company. i know you talked to all of your shareholders, but do you have communication with warren buffett and what does he say to you? >> well, i know mr. buffett. we've run into each other on several occasions over the years. so yes, i have talked to him of course about his southwest investment, but you know we never disclose any of our conversations with our investors. and, you know, we're just trying to run a good company and create a lot of value for all of our shareholders, but certainly berkshire hathaway as well. >> one last question. you have been -- you have a lot of roots to texas. oil has really stabilized here and in the area you're in, it's actually a boon. are you seeing that year over year nice declining fuel cost but at the same time, the boom is helping southwest in texas? >> yeah, texas is really, really strong. of course we live here in dallas and there are cra

what does warren buffett, arguably the most successful of all our time do?ite holding period is forever. he also says, if you're not going to hold a stock for 10 years, don't hold it for ten minutes. well look, what about just not stocks but treasuries? they have been a favorite for long-term investing and as they weather volatility and provide consistent income? jack mcintyre, a portfolio manager for brandywine global. he runs fixed income and related strategies. here to talk about long-term investing, jack. it is different when you're doing long-term investing for stocks versus fixed income? how do you do it? >> no, agree, it is certainly different. tough have a little bit of a different time frame than equities, fixed income tends to be driven more by business cycle influences. but having said that though, there are certainly some secular influences your viewers need to keep in mind when it comes to having some core position in u.s. treasurys deste nominal yields. the yields they report in the paper might be low but treasurys serve a lot of different role

warren buffett is changing his plan for wells fargo stocks.ire hathaway has withdrawn its application to the federal reserve to boost ownership stake in wells fargo above 10%. instead can the 8 million shares to keep his holdings below 10%. berkshire told officials that maintaining the higher stake would materially restrict its ability to do business. wells fargo has been doing since september with a scandal over the creation of millions of unauthorized customer accounts. the shares of the bank down over 3.5% this year. lea: united airlines continues damage control mode after a man restaurant off a plane and injured on sunday. chief executive oscar munoz said the airline will never again use police to remove passengers from other book sites. airlines would also reimburse 70 passengers on board the plane on sunday. lawyers for dr. david dow, the passenger ride off the plane. they are preparing for a lawsuit. they filed court action to retain the airline surveillance video. the cockpit voice recording and incident reports. lauren: democratic sen

the backlash from the video and united's response, cost the largest shareholder warren buffett, some k. the company itself saw 570 million sliced off its market cap this week since the incident. mr. buffett has not commented yet whether he would hold on to the stock. something tells me would. he goes through ups and downs with many stocks. you saw him less interested in wells fargo after that scandal athat bank. we'll be watchinthis. >>> you just heard even imf chief christine lagarde is anxious for a corporate tax cut here in the u.s. charlie is here to say neither she or wall street will get the big tax cut the president promised. charlie, big or tax cut at all? >> i was listening to your interview with bret baier and it was, what was interesting about it, he thinks that the health care reform will happen, that freedom caucus members. liz: monday or tuesday. >> monday or tuesday. okay, so this, this sort of flows pretty well what i'm hearing in this sense. what white house is telling people, their lobbyists, telling people in congress, that they are still eyeing a massive corporate

did you promise warren buffett anything about reputation?at i would do my best. that's all i can promise and i promised him that we would execute on the changes that we have talked about publicly and we would be very focused on rebuilding trust with our customers, our team members and our shareholders. >>> so wells fargo has said in regulatory filings in the department of justice and the sec are investigating the bank's practices. they tell me they're cooperating with regulators and we'll will have to see where that all goes and we have to talk about politics and his hopes for tax reform with president trump and what he wants to see from this administration. >>> breaking news, we are getting our first look at just mammoth protests taking place in venezuela. we'll take you there live next. [student] i can just quit school and get a job. [ex student] daddy's here. [wife] hi [dad] hey buddy [son] hey dad [wife] i think we can do this. [chancellor] adam baily. [chancellor] adam baily. he's a nascar champion who's she's a world-class swimmer who'

. >>> investor warren buffett is so popular in china they're putting his face on coke can his.ave coke permission to use his image for a limited time. and amston will stream thursday night nfl games this season. the ten-game one-year deal cost amazon $50 million but the game will only be available to amazon prime users. they had a similar deal with twitter last season. >> watch a little football, to shopping all in the same place. >> one-stop shop. i leak it. >> jill wagner at the new york stock exchange. thank you so much, jill. >>> and dallas quarterback tony romo is changing team. the longtime dallas quarterback retired yesterday and announced he'll join cbs as an analyst. he's a leading passer and of touchdowns. welcome to the family. >>> still ahead, keeper of the keys. we'll meet the man who has the entry to some of the world's most valuable art. and checking your score won't hurt your credit. oh! i'm so proud of you. well thank you. free at at discover.com/creditscorecard, even if you're not a customer. enamel is the strong, wof your tooth surface. the thing that's reall

. >> tomorrow night in part three of jane's series, we'll meet the warren buffett of san quentin. >>> i'm contessa brewer. thanks for watching. >> i'm tyler mathisen. see you tomorr.

. >> you and warren buffett, this has been something that over the last seven years we've seen this hugeh of money. vanguard has now over four trillion dollars, up from just a trillion dollars seven years go a. as this message gets out there, is it still the best way to do things? >> well, it is the best way to do it, if you just understand this one thing, or you need to understand this one thing. the indexing is holding the market essentially. the s&p is 85% of the market so that's about the same thing as holding 100% of the market. so the market return is the market return, and that is what all investors share whether they're in index funds or not. it is pretty simple. i don't think this is a -- a false signal or a bad in indexing. it is a long-term trend that's going to permeate. >> investors are getting the message and wising up. >> getting the message, and message consists of owning the market, diversifying to the nth degree, make sure you do it at low cost, say four bases points a year, four-100ths of 1%. don't trade, do look at etfs that trade, what do they call it, smart beta or

the likes of industry legends like jack fogle of the vanguard group and billionaire investor warren buffett. but a case can be made for using a bit of both, active and passive fund management. for "nightly business report," i'm dominic chu. >> despite the information today's report provided, we're still left with crucial questions. are there pockets of the market where active management is worth paying for? if so, which ones? joining us now to shed some light on the issue is ben johnson, director of global etf research at morningstar. ben, good to have you with us tonight. i have to get to the big question. based on that report, there any role in investment? why would you ever go with an actively managed fund? >> thank you for having me. it's a terrific question. certainly the odds don't lie. the odds are stacked against active managers. but that's not to say there aren't pockets of the market where active managers have better odds of adding value relative to their benchmark. it's also not to say there are certain shortcuts that can boost the probability that active managers will be able to

delta's 8% is owned by warren buffett.arren buffett is not going to sell because he saw some video. >> no. no. >> but still below their 50 -- >> transports are the diciest element. i feel the rails have held in there. obviously we have this deal for the trucking companies which is remarkable. schneider goes public, then we had a new trucking company and then back to a couple. and a great deal for xto. >> making reference to the -- >> it's significant. this is consolidation continues. you know, in an industry -- >> well, you had schneider come public last week. >> good company. >> competitor of them. they're getting together. we'll keep our eyes on the knight and swift. a merger of equals. knight in some ways even though -- as far as smaller from a revenue basis, jim, the management team and board comprise their side of things. the stocks are reacting positively to the deal. >> they should. all consolidation -- >> not a $6 billion deal or anywhere near that if you look at the press release. that's the combined market value

and today, as the worlds most famous investor, warren buffett, is being used to sell cherry cola in chinat to know, which celebrity endorsements have convinced you to make a purchase. just use the hashtag bbcbizlive. we start in india, where the uk finance minister is leading a trade delegation. it's a two—day visit, where philip hammond will stress that britain is open for business and looking for new trade deals, as the uk negotiates its way out of the european union. both countries have had a relationship spanning many years. and let's talk you through the relationship. in 2014, the value of all the goods and services sold between india and the united kingdom was about $24 billion. and it works in india's favour — they export a lot more goods to the uk than the other way around. their top exports are clothing, footwear and medical items. what are the countries hoping to gain in the future? india is looking to raise more than $1 trillion for infrastructure over the next decade, and the uk hopes it can benefit from that, given its position as the world's top financial services exporter i

warren buffett lavished the praise on vanguard.y are getting endorsements when they don't even need them from the likes of buffett. they are in the sweet spot right now in terms of taking in cash. abigail: what drove those record numbers? that really stands out. 46% better than the past. >> i think it is a tipping point that has been hit. everybody has cheap funds now. why is vanguard taking all the money? they were lowering fees in the 1980's and 1990's when nobody was asking for the obese. everyone else was raising fees. that's when nobody was asking for lower fees. now, everyone wants low cost. abigail: they also dominate in -- how does an active manager compete with that? >> i don't know. -- theirctive fun active fund is trillion dollars. activesxtrapolate their what they will be the biggest active fund manager in two years. industry, it will be difficult. lack rock seems to be the only one that's black rock seems to be the only ones who can do it. abigail: talking about the monster flows into vanguard funds. vonnie: thank you

alix: where does warren buffett stand? do you ever want to bet against warren buffett?how some of this will be. warren buffett holds around 10% of the stock, the largest holder by far and if you don't have support from some of those large investors like blackrock and vanguard, you may be sort of putting a note confidence vote -- no confidence vote. even that will be something we don't normally see. anything below a 90% for any of these directors is going to be news. some people think they could even go to 60% or 70%. that really means shareholders are expecting a meeting when we get percentages that low. jonathan: outside of the board room drama, the other thing investors will be focused on is the trajectory of earnings and what is happening with the underlying company. where -- what is happening right now? laura: it's a little hard to hear you, but i think you asked about where the company is going in terms of revenue and growth? jonathan: yep. call: analysts on the last had asked tim sloan, the ceo and cfo, john screws very -- john shrews very -- john about growth. no

.- strategy we have warren buffett been one of the most public champions of this shift and it is somethingve seen in pension funds. just a microcosm of a larger shift in the fund management industry. >> there are long-term contracts that have locked them in. sees they have investments that do higher returns. are-term contracts that difficult to unwind. i do think when we look at this trend, and we see even the markets doing what they are doing, continuing to be on a pretty good hair. people talking about whether we are going to see the end of the bull market. this debate about what you are actually paying for. roils thething that huge funds we know about. oliver: we always talk about a macro, top-down conversation about active versus passive. let's talk about a story in the future section. role that will surprise a lot of people, the industry for ankle behcet'-- bracelets. megan: this is a company that we scratch tape.r innovation, engineering wonders. they pioneered the concept of giving employees time off to think about new things. one of the markets they moved this in the middle part of

talked a lot about this, this is not a shift that is new, we have warren buffett being one of the publice shift. seeing a shift this way. this is a microcosm of a larger shift being felt throughout the management industry. >> there are some long-term contracts that have locked them in. >> they are arguing that they are our most favorite nation. this is a bad move. something that long-term contracts make it difficult to unwind. we do think that when we look at the trend, we see the markets doing what they are doing, that is to continue to be on a pretty good tear. people are wondering if we will see the end of this. this debate over what we are actually paying for, this is -- it is the huge funds that we all know about. macro,lways talk about a top-down conversation. very intricate look at what it means to actually make the switch. i think we will surprise a lot of people, the industry for ankle bracelets. >> this is the company we all know for scotch tape. this is the company that actually pioneered breakthrough things. one of the martyrs they moved it into, this is the middle part of th

we have warren buffett as a public champion of this shift, and this is something we have seen in pensionifting this way. this is a microcosm of a larger shift going on. carol: not always so easy because there are some long-term contracts. >> what he says is they are arguing they are a most-favored-nation and this is a bad move. long-term contracts are difficult to unwind to get the assets out, but when we see the markets doing what they are doing, which is continuing to be tear, butty good this debate over what you are paying for these asset is on ant fees state-by-state and a municipality by municipality argument now. oliver: we talk about a macro top-down conversation. this is a look at what it means to make the switch. let's talk about a story and the features section, 3m in a role that will surprise a lot of people, the industry for ankle bracelets. megan: we all know 3m for the posted note, scotch tape, and a company founded on innovation and engineering wonders. this is a company that pioneered giving its employees time off to think about new, breakthrough things. they have markets

happened since 2012, makes me feel that if they don't get it right this year, it might be the year warren buffett will finally bring in the -- >> caller: with the earnings coming out on the 27th, if it's a buy, sell or a hold. >> i think mgm is going to be delivering. the national harbor casino, why i do mention it? because it hurt the earning last quarter, it won't do so this quarter, at $28 i want to buy mgm. jack in georgia, jack. >> caller: hey, jim, this is jack, i had a couple of questions for you about t-mobile stock. >> sure. >> caller: i know t-mobile bought $8 million from -- what are the top three telecommunications stock. >> t-mobile has been my favorite in the group, and it's been that way for a long time. i think john ledger is doing the real thing, even though i have to tell you, sometimes he has that guerrilla marketing, i would say t-mobile first, then i would go with verizon, because i like-year-old, then i would go with sprint because i still believe in that turn, and then att which got a couple of number cuts that do concern me. but t-mobile, all-time high today. correct, goin

my point here is a simple one, i would rather keep my bat on the shoulder, knowing as warren buffettthere's no good calls in investors. sure it would be great to invest in every buy, in every moment of newfound weakness. that's impossible, no one's that good. the better thing to do is to wait until the odds favor you. you can always hit on an 18 and draw three and beat the dealer, who turns out to have two face cards and say to me, see? i told you i had to hit on that 18, that was the right thing to do. but most of the time hitting on 18 is a terrible idea, because the odds against you, same with investing, most of the time you get a win, but most of the time that's a respect by for failure. wait until you have maybe a better hand with more possibilities. so you miss it, big deal, you didn't expose yourself when you thought the market should be making a lot of head way, you didn't expose yourself because of the season and the week and last week's mark up that the stock will go down. i learned that much, don't ask me to unlearn it now. linda in new york. >> hi, jim. linda. >> caller:

either way, i want your to keep in mind that warren buffett owns 8% of this airline stock, and i generally like buying a buffet stock if i can get it on weakness. i think it prompts some upgrades when mosaic, the fertilizer company talks about its business. lately anything in the agriculture has been flying. look at that fmc running, that's crop protection. the only segment that hasn't taken off, is fertilizers. i think mosaic tells an interesting story. to be fair to this count, it's had a lot of bad thing happen to it of late. i think they can tell a good story. i would like to actually own the stock ahead of that meeting. finally the most important market event comes on thursday, when we hear from the big banks in what will be a frantic warning. we got to pay close attention to what's new on what the banks make off of your deposits. we want to hear got long growth. we need to get a look at what expenses could be like as the president's in for some roll back legislation starting to pick in, and in the case of wells fargo, we want to get a read on whether the bank has been able to put the

jamie dimon is releasing his annual letter, which is now almost as widely read as warren buffett's annualak what he thinks is key for jamie dimon. one thing he wishes the jpmorgan ceo would be more outspoken on behalf of wall street, one of the few voices that is really listened to. haidi: that is right. we will be touching more when it comes to japan with the regulators, with japan data from the finance ministry. this not to be just more positive but also more widespread recovery, smaller sized business and also across the services sector as well. we will get more analysis. that is it for daybreak australia. we will get all of the action with yvonne and ♪ yvonne: no rush on rates, the new york fed president says the economy is not overheating comes to further hikes can be gradual. the pboc tightens rates, the worst ever quarter for corporate bond defaults. mind your language, white and corrected messaging apps are becoming a headache for wall street. -- why encrypted messaging apps are becoming a headache for wall street. we have the world covered here on

you will see united's stock this morning, warren buffett has a big stake in united.bell rings] you will see a move to safe havens as in gold, as in united states treasurys. turmoil overseas, safe haven here. we're up, we're running. it is wednesday morning, we're down 13 points. that is the very first quote on the dow. i see some green. i see some red. it is a mixed bag of an opening. that is what we have got in the first 30 seconds. the price of gold? we're going up, still five month, almost a six-month high. 1277 on gold. that is are with we're now. look at this one, another safe haven. united states treasury bonds, the yield is down to 2.29%. remember please, money pours in, prices go up, yields come down. 2.29, that is a safe haven. >>> how about united's stock. where does that open? it has been a rough week for the chart that is the weekly chart. as of right now it is up 50 cents. that is a bit of a recovery from the 58-dollar quote yesterday. >>> walmart are offering dispoints on a million items if you buy them online and pick them up at stores. that is a chall

we have warren buffett as a public champion of this shift, and this is something we have seen in pension this way. this is just a microcosm of a larger shift going on. managementthe fund industry. carol: not always so easy because there are some long-term contracts. >> what he says is they are arguing they are a most-favored-nation and this is a bad move. they have long-term contracts that are difficult to unwind to get the assets out, but when we see the markets doing what they are doing, which is continuing to be on a pretty good tear, but this debate over what you are paying for these asset management fees is on a -- active management fees -- and the huge funds we know about that are also on a state-by-state and a municipality by municipality argument now. oliver: we talk about a macro top-down conversation. this is a very intricate look specifically at what it means to actually make the switch. let's talk about a story and the features section, 3m in a role that will surprise a lot of people, the industry for ankle bracelets. megan: we all know 3m for the post-it note, scotch tape, a

ibm is tuna with good taste. >> what does warren buffett want out of coca-cola?ncey says. the company dramatically reduced its head count, going no longer for volume, going for price and it's working. now a total beverage company, selling a lot of different beverages not carbonated. quincey is giving a good hand. i would be a buyer of that stock. >> we had a deal worth mentioning, tyson foods buyed advanced pierre. >> were they lucky? >> i can't get -- >> was pierre luck why i? >> they make pre-made sandwiches. >> philly steaks, let's not be gener generic. >> sandwich components and snacks, the company getting bought for $40.25, 3.2 billion in equity, tyson food shares reacting positively to the deal which is always important as we know. >> anything that makes -- >> see how at quithe acquired s reacts. yesterday dickinson's shares did not react positively to the deal. >> this is a higher value-added product which gives it a higher multiple versus conagra. people feel you can't get a higher multiple. tyson has done right. remember it was a chicken company and what

but we see no good reporting on the economy on television at all unless they interview warren buffett. he knows a lot. it's interesting, even buffett, he's a genius, even he doesn't have an answer to the serious economic problems we face. and we have one, giant, enormous mega problem and that is the underclass who refuse to learn skills, refuse to get off their ass, refuse to get off welfare, refuse to go to work, how do we get those people motivated to learn skills and go to work. i do know what the answer that is. i do not think esther buffet or mr. trump knows what those answers are. and it's considered politically incorrect to even bring it up. i would say that coverage of the economy on television, by and large is pathetic. >> back of the room to your right, sir. >> sorry? where was the other question coming from? >> back of the room to your right? . >> thank you. i'm a chicagoan. my father was a democratic precinct captain for 30 years. so i know the democratic party and i know what it has done. but i am appalled at what has happened to california. i feel like we're living in a

. >> i've heard of warren buffett, i've heard of bill gates. how come i've never heard of you? you're a billionaire? >> well, we're very modest. >> reporter: r.j. may not be well known, but his money certainly is. >> they a swiss passports. >> those are his stacks of cash. >> fun coupons. >> reporter: in mastermind. they call r.j. the king of cash, al be it fake money that's on screen all the time. >> reporter: but rarely hollywood close-up. >> that looks real. >> five feet, ten feet, it looks real, as we get closer, all the sudden, the optical illusion gets closer. >> now you can see, it's fake. >> highest quality bills are printed on just one side, so it's not to be passed off as real. and if you look closely, that's a w. not a u for united states, and that symbol, two chickens facing each other. and the letters kfc. and those latin words, roughly translated, in beer we trust. >> this is from hidden figures. >> reporter: movie producers call r.j. for all sorts of props. >> hunger games. >> reporter: but when off billion dollars on hand is what gets all the attention, includin

there is warren buffett at the game. 84, that's the age of interns at berkshire hathaway. the news update this hour. carl, back to you? >> sue herera, markets are rallying. dow is up 110. off of the highs for the morning. we are joined by cowan and trading david seeburg. a lot of pots are boiling. macro data and mna. what explains the run-up and the more recent pull back? >> we saw the adp number come out. the futures were up small, three ish roughly. that made them pop. i still think, carl, we are in a trading range. we talk about this all the time on "fast money." we are in this range where investors are really concerned. they are concerned about we are not going to get a lot more up side. we are sort of in this period where the down side risk is sort of muted as well. we are sort of in this pattern where we are waiting for trump initiatives to come through and some timeline in that passion. we are waiting to see some obviously more positive data come through on the economic front. in general, i feel like we are almost in this hold pattern. >> is concern the right word w

last year, my rate was 28% and warren buffett's was 13. that's going to cut my taxes. i'm a middle income guy but i happen to make a lot of my money consulting and things like that and i'm not a rich person and there's a lot of people in my category paying high taxes. i have to pay higher than corporations do. >> the corporation pays the tax. your corporation, peter, is paying zero tax. you're complaining about your tax as an individual. >> i don't get to put my -- >> the corporation pays it out to the owners and the shareholders have to pay tax so they are being taxed twice. >> they don't. they turn it into capital gains which is much lower. >> but the corporation pays the tax and then there's the capital gains tax. you don't pay any business tax. you just pay the individual business income tax. also, 70% of people take the standard deduction so it's not helping at all. >> hang on. i have a follow up for you. is there anything that would make liberals happy? because i talked to someone in the last hour who said this is a nonstarter for them. how do you see it? >> it's

we have warren buffett as one of the champions of this shift. something we have seen in pension funds, whether it is calpers or other retirements shifting this way. and this is just a microcosm of a larger shift in the fund management industry. carol: not always so easy, right? there are long-term contracts that have locked them in. megan: he argued that they are a most favored nation and that this is a bad move. and that they have them an alternative investments with higher returns, long-term contracts that are difficult to unwind to get the assets out. i do think that when we look at this trend, and we see the markets doing what they are doing, continuing to be pretty good, talking about whether we will see the end of this bull market, more than eight years and counting. but this debate about what you are actually paying for. it is something that roils the huge funds we know about. it is also on a state by state and municipality by municipality argument now. oliver: we always talk about a macro, top-down conversation about active versus passiv

>> i say -- you know, you'll have to sort of forgive me for somewhat sort of, you know, like warren buffett question, never ask a barber if you need a hair cut. but when i look at the relative value of equities versus fixed income, i think that equities become a very interesting sort of relative allocation, especially if you believe we'll see a normalization in inflation going forward. so, i'll give you a good indicator of that. if you look at the european equity market, fully 80% of the corporate sector has a dividend yield higher than the corporate bond yield. so your yield pick up through investing in stocks in the short-term -- these are often real yields. >> ten seconds, which markets? >> i think i would look at the uk. i would look at europe. if we're looking more globally, japan is interesting. >> excellent. you got out with two seconds to go. paras, thank you very much. we need to take a short break. world markets live is our blog that goes all over the place throughout the european trading day. find us on twitter, @louisabojesen or on email, street stroet street.csi. com. >>> good

i don't know what b warren buffett's going to do about it ch he's there, he's in much higher prices. >> 170 in change was his cost base. >> average price. 170. >> ruined at this point. >> i agree with everything steve just said. from a trading perspective, if you were long the this name, the 200 200-day active going back to a year, now that's backed to over a 200 day. your reason for being long this name from a perspective are now gone. if you're an investor to steve's point, this is consistent. probably nothing you heard today would turn you off from it or change your opinion. i think the investors stay put. trying to have gone and that's the story. >> from a trader's perspective, have a value investor's perspective. is there value? >> no, sorry to say. this is a value trap. the exact example. key element is their main growth business is artificial intelligence. it's awesome technology. they can't make enough money from it. they're seeing declines. this is a perennial value track. for the last five years, there have been these spasms from the stock surges. the last several months ha

warren buffett is paring back his stakes in wells fargo. berkshire hathaway announced they're selling 9 million shares in the bank and will withdraw the application to boost its stake above 10%. the move wasn't a change in investment outlook but following extensive talks it realized increasing ownership would restrict our commercial activity with wells fargo. >>> tesla ceo elon musk has fired back at investors who are unhappy with his company's governance structure. five share holders have written a joint letter recommending two new board members and calling for a re-election of all directors. musk took to twitter saying perhaps shares in ford would be a better fit for their portfolios. this following a surge in tesla's share price. i think tesla won that fight earlier this week, they're the most valuable in the u.s. >> crazy how quickly that happened. >>> preorder fors >>> preorder for for system sun n system sung's new smart tone has previously beat that of the s7. samsung is expected to post record profits during the second quarter of 20

. >> coming up, lebron james and his good friend warren buffett grants a birthday wish.w the latest from trading nation.cnbc.com and a word from our sponsor. >> some traders use buy stock limit orders placed above resistance level. unlike regular buy stops, they turn into limit orders to buy when triggered, not market orders. if it opens far above the limit price, the trade will not buy the stock. . >>> check please. >> all right. warren buffett attending a cleveland cavaliers game last night to watch his fripd lebron james play. at one point on the jumbotron, look at your screen. they showed a woman holding a sign that said, win for my 84th birthday. then the camera came to show buffet showing his own sign? 84? that's just an intern at berkshire. and the cavs granted her wish beating the orlando magic 122-102. >> wow. charming. >> and now, folks, 32 sponsors have pulled ads from fox's o'reilly factor. i believe five pulled in the course of this program since the show started, pacific life, subaru, legal zoom, eli lilly and car fax out at the factor. >> and the question

they wouldn't have survived it without the 10% or so vote that they got from warren buffett.t was close. pretty tough day for those guys. highlights the ongoing pressure they face. the ongoing winner, tim sloan. almost 100% vote to approve him going forward. that's because he only got up to the board in 2016. this was a vote on his board position as opposed to his role as ceo. if you step back from the last two months, including the board rer vi review, he's come off well on this. >>> shares of capital one under pressure after the company posted weaker than expected earnings and revenues. the company reporting a 20% drop in net income as losses jumped for u.s. credit cards. shares down over 3%. >>> juniper networks beating the street. the company forecasting this quarter's profit a penny higher than analysts consensus. the stock higher by 3.3%. >>> looking at irobot topping expectations on the top and bottom line and now raising guidance. the consumer robot company reporting revenue growth of 32%. >>> edward life sciences posting better than expected results. >>> ugg brand ow

even warren buffett likes airlines these days.urport that we got from united, which is all pretty thatida this incident confirms airlines are doing good? >> we are still at a generational high for the profitability. we know fuel costs will be higher through the year for most of the airlines. they're more profitable than they had been. a lot more investors looking at them because of that. scarlet: have we reached peak profitability? there is a statistic that says united, american, and delta combined own more of the market than they did. they survived the oil spike, the security, all of that. are they destined to not make as much money as they did last year? >> they are already not really living in the alternate universe that they were a couple of years. they still had the revenue structure that they had went the revenue was more expensive, capacity was more restrained, and yet, they have the new cost structure of a cheap oil environment. now, they have grown some. low-cost carriers in europe, in particular. airlines, in almost any