extract all the equity and they leave that debt and then the enterprise crumbles in the case of warren buffett you know these doing the stock buybacks which is you know used to be illegal until recently that's completely fraudulent and he has no governance or oversight whatsoever you know he's a more the one of the biggest are the biggest shareholder of wells fargo for example during that period when they were engaged in serial criminality when they were engaged in absolute fraud and he's a party to that so here's a guy who given unlimited credit at zero percent and who's exempt from the rule of law still can't seem to make money for shareholders which is you know let's roll back a little bit because what you're talking about when you talk about private equity is that kraft tines kraft and heinz two major consumer products in america they sell food like products you know catch up and velveeta cheese. they merged under the guidance of three g. which is a giant brazilian private equity firm and private equity as we've talked about here and kaiser report for years is the extraction model they've

so much of warren buffett's coca-cola the g.d.p. of this country would decline and perhaps decline in a way like italy their economy has declined since the rise of the euro nevertheless there are there are health continues to rise because they're not eating this junk and they continue to have a universal health care system just like spain has a universal health care system they also have community they still have ties with their families and their neighbors and their you know local community we don't have that anymore here and life is too busy so in terms of the health care industry the american economy is a suicide cult and or a buffet is jim jones and this is the massacre and he sells the kool-aid i think he literally does. practically rightly sells a kool-aid or something similar to it with his junk food empire and other countries have a different value system and they've lasted hundreds of years longer the u.s. is a relatively new comer on the world scene it's only you know less than two hundred fifty years old so you know wheth

and it was just a mild surprise to me >> it's worth maybe talking about the difference between warren buffett and average investors, which there are many. >> or professional >> the luxury of owning companies. i think most people out there own the market right? >> advice, by the way. >> his advice, so warren cannot care about the fluctuations and the volatility in either the economy or the market. he owns companies and those do well over time the market though, which is also, by the way, true over time >> he tells them, this is going to go up and down. do not hold me to quarterly. he doesn't even have quarterly results. >> i wonder if the average investor needs to be more up on what's going on with the volatility and the economy >> your average investor >> there's a difference. talked about how wall street, in a way, prioritizes the quarterly numbers. their ability to time the market and as opposed to the punch card he talks about all the time. think about it only holds 30 stocks >> the vanguard index fund. >> he said, i think, effectively, that he likes to buy companies that can afford to mak

wells fargo ceo tim sloan retiring effective immediately we'll show you what warren buffett has said out sloan as another warren might have been a little involved in all this. we'll talk about that just before the announcement. it's friday, march 29th, 2019. "squawk box" begins right now. ♪ i like to dream ♪ yes, yes ♪ right between the sound machine ♪ >> live from new york where business never sleeps. this is "squawk box. ♪ >>> good morning, everybody. welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. andrew ross sorkin will be joining us later in the show with a first on cnbc interview with the founders of lyft. more on that in just a moment. our guest host for the hour is ed lee he is "new york times" reporter. also a cnbc contributor and, ed, good morning >> good morning. >> good to see you we'll put you through the paces. lots of news to run through.

laws if a company used its market power to raise prices on consumers are likely to do so that warren buffett you know he's an opportunist in the those well by a shareholders it's up to the government to step in and be a player in the economy not just an enabler for a monopolist you know the government should be competing for health care and drug prices they should be competing in transportation and education and they should offer an alternative people should be able to get a public utility bank for example account and get out of the matrix of the big wall street banks they don't have that option they should have that option and therefore you would restore some competition in the economy the government and regulators should remain neutral and they don't because they find warren buffett credibly built tens of billions of dollars worth of value to his name and they find him you know credibly and sweet and powerful so they they like him and they don't want him to harm his business so you are harmed in the long run if you're if they're just distracting you with the price and like we're going to l

wells fargo ceo tim sloan retiring effective immediately we'll show you what warren buffett has said about sloan as another warren might have been a little involved in all this. we'll talk about that just before the announcement. it's friday, march 29th, 2019. "squawk box" begins right now. ♪ i like to dream ♪ yes, yes ♪ right between the sound machine ♪ >> live from new york where business never sleeps. this is "squawk box. ♪ >>> good morning, everybody. welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. andrew ross sorkin will be joining us later in the show with a first on cnbc interview with the founders of lyft. more on that in just a moment. our guest host for the hour is ed lee he is "new york times" reporter. also a cnbc contributor and, ed, good morning >> good morning. >> good to see you we'll put you through the paces. lots of news to run through. >>. >> let's check on the markets this morning u.s. equity futures so far on the session. up about 50 points the s&p indicated up five or so. nasdaq indicated up 22 the dow now in the mid

morgan this global derivatives market that warren buffett called weapons of mass financial destruction it's going to blow up again it's almost a guaranteed certainty is it legit say the odds are that it would be

kingdom wanted for their trade deficit it's also important to note that we've been talking about warren buffett is annual letter and all his imports note that he says he keeps on pointing to nine hundred forty two is when he the first time he bought shares and that how great it is and he's done wonderful and why can't we all do wonderful like i have dodd but you notice like when he said mohnish in people to invest in u.s. companies the average worker has less and less they're getting less and less of the cost of all those companies he's invested and we're right in seventy one is the gold standard is severed and the us is no longer a gold backer scene and anyway right becomes purely a money currency and the world becomes financial in a way that saudi arabia is opec defied other words you know an opec they don't need workers they don't need taxes they just pump oil when ever they need to increase the wealth of the princes so in the us after nine hundred seventy one workers were not required it was just a matter of printing more money so you had the rise of the financier's like warren buffett who

warren? howard: buffett.g, i wrote a memo -- i forget which one it was -- which was right up his alley. i wrote him afterwards and said, did you see this one? he says, by the way, if you write a book, i will give you a quote for the jacket. enough said. barry: a blurb. howard: enough said. you don't pass that one by. i always thought i would write a book pulling the philosophy together when i retired, and instead it got accelerated. barry: let's talk about the second book, mastering the market cycle: getting the odds on your side. of all those 21 chapters, in the first book, why cycles? why did you pick that, eschewing the other 20 when you could write a encyclopedia, each volume being a book? howard: barry, i believe out of all 21 important things, there are two more important than the others. they are risk and where we stand in the cycle. i believe that risk management, risk control is the mark of an exceptional investor. it is not hard to make money in the market. it is especially not hard when the market

warren? howard: buffett.aying, i wrote a memo -- i forget which one it was -- which was right up his alley. i wrote him afterwards and said, did you see this one? he says, by the way, if you write a book, i will give you a quote for the jacket. enough said. barry: a blurb. howard: enough said. you don't pass that one by. i always thought i would write a book pulling the philosophy together when i retired, and instead it got accelerated. barry: let's talk about the second book, mastering the market cycle: getting the odds on your side. of all those 21 chapters, in the first book, why cycles? why did you pick that, issuing the other 20 when you could write a encyclopedia, each volume being a book? howard: barry, i believe out of all 21 important things, there are two more important than the others. they are risk and where we stand in the cycle. i believe that risk management, risk control is the mark of an exceptional investor. it is not hard to make money in the market. it is especially not hard when the marke

in the future because of warren buffett and what potential he might have interests in southwest. >> looking for his big -- >> you never know. burlington who would have ever thought that and all of a said baing call ye inbuying calls, tk is southwest one of them i know he's reduced some of his positions. when he bought all four airlines, he reduced a few positions in some of those southwest i think is a very, very is interesting one. is this more of a temporary one for southwest. as much as they are the most exposed here, that exposure level is how much of a percentage of their fleet. that has to be considered. and southwest i think can navigate -- they have a great ceo. >> i don't think that he is interested in the airlines he had a terrible experience at u.s. eair and it is not him tha butt the airline bought the airlines. it was the guys that he bought in >> why do we say -- did he buy apple? let's be honest. it is a decision that is made within berkshire hathaway. >> if he was wholly against the airlines, they probably wouldn't have the scale that they do in the airlines, right?

. >> ahead -- an exclusive interview with berkshire's warren buffett his take on apple's new products, his airline investments, the economy and rates. >>> plus -- are we finally making real progress on china trade talks? and lyft ipo's range gets a lift is it getting too frothy this is "the exchange" on cnbc dear tech... you've been making headlines. smart tech is everywhere. but is that enough? i need tech that understands my business. i need tech that works at scale. dear tech... dear tech... dear tech... we're exploring quantum to develop next generation energy. we're using blockchain to help make sure food stays fresh. we're using ai to help create more accessible health care. we're using iot to create new kinds of digital wallets. let's see some more headlines about that. let's expect more from technology. let's put smart to work. >>> white house economic adviser larry kudlow speaking on trade earlier today saying he believes the usmca agreement will pass and there's been, quote, tremendous progress being made on trade with china. eamon javers joins us with more as to how this is

david: warren buffett still uses that old flip phone. tim: i told him i will personally come to omaha to do tech support for him. david: you exposed your own personal life a bit. tim: i thought, i am making the wrong call. david: why is it called the apple watch and not the iwatch? tim: i kind of like the apple watch. david: well, you are the ceo, so. [laughter] >> would you fix your tie, please? david: well, people wouldn't recognize me if my tie was fixed, but ok. just leave it this way? alright. ♪ david: i don't consider myself a journalist. and nobody else would consider myself a journalist. i began to take on the life of being an interviewer, even though i have a day job of running a private equity firm. how do you define leadership? what is it that makes somebody tick? [applause] david: that was quite a reception you got here. tim: i thought it was you. david: no, it is for you. you have now been the ceo of apple since about july 2011. the earnings are up about 80%. so have you ever thought you can't do better than this and maybe y

plus, warren's warning, why warren buffett says regular investors shouldn't buy into the so-called hot> and shares of wells fargo are rallying tim sloan retiring saying the bank would benefit from a change in leadership. another one, warren was involved in that one. >>> we'll start with lyft, will trade under the nasdaq the ticker symbol, lyft, $72 a share. that was at top of the expected range. in fact, above the original range for it it values lyft at more than $20 billion on its first trade comes as the company's big arrival uber preparing to enter the public markets, perhaps within let's call it a next four to six weeks we're going to bring you lyft's opening trade once it happens. jim, some quick color i've gotten, some investors and bankers. well placed as you might imagine. very much oversubscribed not going to give outnumbers everybody puts in so much more than they could ever get, those numbers aren't necessarily -- >> hot deal, you try to get 10%, you get 100,000 shares if you run 500. >> exactly so, listen, the key is they seem to have undercut some of the hedge funds in ter

david: warren buffett still uses that old flip phone. tim: i told him i will personally, out -- personally come out to omaha to do tech support for him. david: you exposed your own personal life a bit. tim: i thought, i am making the wrong call. david: why is it called the apple watch and not the iwatch? tim: i kind of like the apple watch. what do you think? david: well, you are the ceo, so. [laughter] >> would you fix your tie, please? david: well, people wouldn't recognize me if my tie was fixed, but ok. just leave it this way? alright. i don't consider myself a journalist. and nobody else would consider myself a journalist. i began to take on the life of being an interviewer, even though i have a day job of running a private equity firm. how do you define leadership? what is it that makes somebody tick? [applause] david: that was quite a reception you got here. tim: i thought it was you. david: no, it is for you. [laughter] david: you have now been the ceo of apple since about july 2011. the earnings are up about 80%. so have you eve

warren buffett wants to share some of his wealth...but before you get too excited.....we'll tell youhe catch involved... billionaire investor warren buffett wants to give somebody one million dollars a year for the rest of their life.(catherine) but there's a significant catch. the berkshire hathaway c-e-o is once again holding a march madness men's college basketball bracket contest. the rules are simple, anyone who can pick the last 16 teams in the tournament will win a million dollars a year for life. but to play, you have to be an employee at berkshire hathaway. about 100-thousand employees have completed brackets in recent years. last year, not a single worker won the contest. (catherine) that wraps up kron 4 news at 8.(ken) but our primetime coverage is just getting started this monday. grant lodes and vicki liviakis are here with kron 4 news at 9. ((grant))thank you ken and catherine..next at nine...a bay area family is on edge tonight after they say someone broke into their home while they were sleeping.and it was all caught on camera.including this video of the suspect going

movement that preaches frugality and living on less but there's a catch >>> words of wisdom from warren buffett. how he says most people should grow their wealth. >>> if you've got a nasty surprise when you did your taxes this year, you're not alone. why and what you can do about it >>> the company that will buy your house and let you stay. a solution if you need cash but is it right for everyone and the most and least reliable cars according to "consumer reports. some names may surprise you. some may not "on the money" starts right now. >> this is "on the money," your money, your life, your future. now, becky quick >> we begin with retiring early. very early not in your 50s or your 60s. a growing group of millennials are quitting work decades earlier. it's a movement called fire. that stands for financial independence retire early. take this job is this week's cover story. >> it's a little bit surreal just in terms of thinking, so this is the next big step. this is the rest of my life. >> for justin mccurry, that giant step was quitting his engineering job in 2013 and retiring at age 33 >> i r

. >> warren buffett sends out his annual letter. earnings season continues, with beats, misses, and reaction. >> we continue to growed good stuff that's been growing fast. >> the whole economic environment is a little bit lower in 2019. >> it is all straight ahead on bloomberg best. taylor: hello and welcome. i'm taylor riggs. this is bloomberg best, your weekly review of the most important business news, analysis, and interviews from bloomberg television around the world. let's start with a look at the top headlines. monday, investors found themselves under less stress after an encouraging development in u.s. trade negotiations with china. >> president trump is extending the trade truce with china, siting substantial progress in the latest round of talks. however, there's a less optimistic tone from beijing. certainties cannot be ruled out. the president has said they are making headway on key issues like ip, tech, and currency, and the sell is still to reach a goal that's beneficial to both sides. how do we quantify the progress t

we sat down with warren buffett.n >> entertainment is a game that's really -- the big players are in it. apple, you know, i would love to see them succeed it is a company that could afford a mistake or two. you don't want to buy stock in a company that has to do everything right >> so a huge shareholder he is not so you sure about the latest move. it is very competitive still backing audiotape l they could afford to make a mistake or two it reenforces that it is a defensive and however they are using devices to be a part of it i don't think the stakes are particularly high for apple >>> wells fargo tim savings and loan is to retire. this is just hitting and crossing the tape. of course he took over in october 2016. >> this had gone away more recently a lot of people pushed back and said they weren't looking outside. no plans to hire anyone. it is being called as a retirement stock jumping 2.7% after hours let's bring up a chart of his share price versus the bank index. i say there's sort of three factors that have be

what about if we talk wealthy, warren buffett said he's paying less in taxes than his secretary.hat a point of concern for you guys?e about the short-termism. speak to any great corporation, they are planning out five, ten, 20 years. >> what about buy-backs, then? >> it is not true whatsoever that's going on in the corporate america that i know. >> warren buffett's commentary was really just about, look, warren buffett is a ridiculous example because he doesn't even get that much of a his company. it's all in trusts and foundations and everything else and stocks. it doesn't mean very much. >> but that's wonderful. >> it's wonderful. >> he makes a lot of money. doesn't pay any taxes. your answer is to want him to pay more taxes? that's the solution? you want to legislate that decision? >> i'm not saying that. i'm not saying that. i'm just raising, just shedding light on the fact you have somebody, people that are in a much lower income bracket and those that are in much higher and there are a lot of loopholes for those in the higher. david: to defend kristina's point, we all know

warren buffett you know these doing the stock buybacks which is you know used to be illegal so recently that's completely fraudulent and yes no governance or oversight whatsoever you know he's a more than one of the biggest are the biggest shareholder of wells fargo for example during that period when they were engaged in serial criminality when they were engaged in absolute fraud and he's a party to that so here's a guy who given unlimited credit at zero percent and is exempt from the rule of law still can't seem to make money for his shareholders which is. what do you do before you came here where did you work before you came here when you lived. death row i'm in many us states capital punishment is still practiced convicted prisoners can spend years waiting for execution but most of the time the victims' families they are very much in favor of the death penalty there are some people because of what they did have given up their rights as live among us some even proven innocent after years on death row and how many more exonerations is it going to take before we as a society realize th

vonnie: if they don't want book value, warren buffett at this point, how does that look?e are only four in the universe. one looks at enterprise value. if you want to get away from book value, there are other ways to do that. vonnie: thank you. up on some of those etf the screen. still ahead, tesla is tumbling. elon musk's strategy up next. in the meantime, let's look at how the major indices are doing. some recent gains. the dallas up .3%, and s&p 500 up .4%. is down the most, more down -- is down more than 4%. this is bloomberg. ♪ comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. ♪ vonnie: live from new york, i'm vonnie quinn. guy: and from london, i'm guy johnson. this

. >> warren buffett sends out his annual letter. withngs season continues, beats missing and reaction. >> the environment is a little lower in 2019. >> it is all straight ahead on bloomberg best. ♪ hello and welcome. .'m taylor riggs this is bloomberg best, your view of the most important news and interviews from bloomberg television around the world. start with -- let's a look at the top headlines. monday, investors found themselves under less stress after an encouraging development in u.s. trade negotiations with china. is extending the trade truce with china. however, there's a less optimistic tone from beijing. certainties cannot be ruled out. the president has said they are making headway on key issues like ip and tech. for exactwaiting details on the two sides. onre is an agreement purchasing more goods and u.s. companies getting better access to china's market, but the big takeaway is right now, the trade war truce is being extended. march 1proach the deadline, all indications, the to. and china are on track put the trade war

taylor: warren buffett sends out his annual letter. earnings season continues, with beats and misses in action. >> the environment is a little lower in 2019. taylor: it is all straight ahead on "bloomberg best." hello and welcome. i'm taylor riggs. this is "bloomberg best," your weekly review of the most important news and interviews from bloomberg television around the world. let's start with a look at the top headlines. on monday, investors found themselves under less stress after an encouraging development in u.s. trade negotiations with china. >> president trump is extending the trade truce with china. citing substantial progress in the latest round of talks. however, there's a less optimistic tone from beijing. they say negotiations will be more difficult on the stretch. certainties cannot be ruled out. the president has said they are making headway on key issues like ip and tech. how do we quantify the progress that's been made? >> we are waiting for exact details on the two sides. there is an agreement on purchasing more goods a

golden ( james ) billionaire investor warren buffett wants to give somebody one million dollars a yearife ... but there's a catch. it part of his march madness college basketball bracket contest. the rules are simple, anyone who can pick the last 16 teams in the tournament will win a million dollars a year for life. but to play, you have to be an employee at one of his berkshire hathaway businesses. the odds are slim. last year, not a single worker won the contest. in fact, none of them got past the first round of the 68-team tournament thanks to numerous upsets. ( james ) there are better odds at winning the lottery. there was no powerball winner over the weekend. the next jackpot, set for wednedsay is now at $550 million. the winnng numbers selected saturday night for the $495 million jackpot were 30, 34, 39, 53 and 67 and the powerball is 11. ( will ) coming up in the next hour of the kron 4 morning news... roadwork on 880 will lead to overnight closures. we will tell you how long the closures will last. ( will ) plus... an east bay school principal is shot and killed. and police sa

david: warren buffett still uses that old flip phone. i will personally come to omaha to do tech support for him. david: you exposed your own personal life a bit. tim: i thought, i am making the wrong call. david: why is it called the apple watch and not the iwatch? tim: i kind of like the apple watch. david: well, you are the ceo, so. [laughter] >> would you fix your tie, please? david: well, people wouldn't recognize me if my tie was fixed, but ok. just leave it this way? alright. ♪

the rich list is the likes of bill gates, warren buffett, mark zuckerberg has moved down a little bitrican billionaires, isn't it? bit. it is very much dominated by american billionaires, isn't mm is the people who have come out of the tech industry. that is still the new industrial revolution, where huge amounts of money can still be made. it will be interesting to see the longevity of all of their wealth. and it is more important, i think, in the coming years to look at how much wealth these people then give away through philanthropy into charitable organisations. that is the real test, i think, while. charitable organisations. that is the realtest, i think, while. thank you for being on the programme, andrew. andrew tuck from monocle. thank you for your company. that is the briefing for another day. whatever you are up to i did goes well for you. we will see you soon. goodbye. hello there. all our weather is going to be coming in from the west over the next few days. there's a really strong jet stream tracking right the way across the atlantic and that picks up areas of cloud. this

charles: professor, let me jump in and ask you, in his recent letter warren buffett said he no longerhe doesn't lose sleep over deficits anymore. you had some other relatively well-known economists out there who are saying they don't matter. maybe we can print forever? >> there is difference between not losing sleep over deficits because the world is adopting the dollar as essentially the single currency in ways that it hasn't in the past. so we need to print more money to get it out there, so on, so forth. that is one level of deficit that is a trillion dollars a year. quite another thing to say we'll replace airplanes with high-speed rail in 10 years. we're going to replace every single furnace and oil burner in the united states with a heat pump in 10 years. we're going to tada. forgive all college debt. we're not talking about printing a trillion dollars worth of bond as year but a hundred trillion dollars worth of bonds. they seem to forget history and the weimar republic, what happened there. millenials doing great, they're a barbell generation. i'm glad the other panelist is do

heinz as part of a megadeal orchestrated by nonetheless warren buffett kraft foods group was subsumednto kraft heinz now before we get into the trajectories, these companies aren't exactly the same. they have one major difference mondelez is all about the hottest area of foods. it's about snacking. you know then as nabisco, oreos, chips ahoy, toblerone, trident gum. kraft heinz is diversified pantry play. they've got jell-o, miracle whip, kool aid, stove top, shake n bake, crystal light, country time lemonade, maxwell's coffee and velveeta, the perfect fallout shelter cheese product not exactly cheese it has enough preservatives to survive a nuclear apocalypse i was surprised that it did indeed have a sell date. you can't sell it past january 2020 so it's got -- it's fresh as the day it was packed. we know the pantry plays have struggled in that millennials favor more natural and organic foods that wasn't a problem for kraft heinz. for years mondelez saw its stock flat line while kraft heinz was the darling. for 18 months this thing soared higher and higher to a peak of 97 and change,

will this accident by warren buffett pay off, pete? >> he's still willing to put more machioney in. >> do you care about what that says >> i think it has some meaning behind it. i don't think warren will throw money because he made a mistake. i think there's a little more thought process than that. also, mel, when you look of the names right now, no exposure to the issues with boeing so basically it puts them in a very interesting spot. i'm already in southwest, which has a lot of exposure or more exposure ual i like, less exposure. and dal. i look at delta. of the names, that one is in the best position to go higher faster. >> last night scott was the host and it is good to have you back. >> that's the second time -- >> he's that happy >> oh, mel, come on. >> to your point gave lousy, lousy guidance the other day but the stock was up 2.25% on that lousy guidance we play poker from time to time and that's called a tell bad news, good stock action. stock up a little more today a little more expensive than delta. >> do you like the airli

even warren buffett said i was overly worried about the deficit all of these years the deficit hawks got voted and thrown out of congress does it really not matter? >> i think a couple things we know one is the bond market isn't worried about the deficit. interest rates are still very low by historical terms. secondly, the public doesn't care about the deficit i haven't seen anybody with a picket sign on the washington mall say raise my taxes or cut my medicare. the new wrinkle is a number of economists, larry summers, blanchard, formerly of the imf have pointed out that when interest rates are low and likely to remain low for a long time, there's less urgency about addressing the debt. but that doesn't mean we can continue to have a debt growing faster than the economy forever. the question is, when do we hit the wall >> i wonder sometimes, if you look at it on a household basis. i don't love making thus comparison but hear me out a household would say you can't spend more than you have but if you look at the debt number, so you have debt on your house but what's your net worth as a