think it's quite important in this day and age and in fact just so you know george soros versus warren buffett 2 different source of investors one speculator one is value investor and they've both and this is a downtown josh brown compare them in 2013 there annualized returns are 20 percent per year for the past few decades and both born in 1930 said they have similar returns in 2 different ways some of the best ng but george soros did write long ago about reflexivity and is quite important to looking at the markets today because i want to point out that according to wikipedia reflexivity refers to a circular relationship between cause and effect especially as embedded in human belief structures as an anthropologist for example goes into a remote tribe in amazon the observer affects the observed so the fact that this anthropologist this guy or this gal from new york city goes into the amazon to a tribe who's never seen somebody from new york they act differently than they would have perhaps if it were somebody else from another tribe in the amazon so what you observe might not know you've infl

then why is warren buffett 120000000000 in cash i come form buffett putting the money to work so but warren buffett has a track record is quite vastly superior to ray ballio so i i don't understand why he thinks we're interested in this thoughts he's obviously trying to justify his low returns last year the nasdaq was up 40 percent the stock markets were up in general about 25 percent he himself his is investors only received 0.25 percent i don't know if that even covers all the fees they have to pay him and his crew but he lost money but maybe now he's capitulating that could be a sign of his capitulating is like. going to jump into this market maybe he didn't believe in it because a lot of people are intellectualising this and the fed can't control everything the fed can't do this the fed can't do that what he was trying to do perhaps was fight the fed a lot of people try to fight the fed peter schiff tries to fight the fed everybody tries to bite the fed and the fed loses or the fed wins until it will suddenly lose i just don't understand why how can so migrate dahlia in a market

in china flood plain how it's affecting markets today and how does a billionaire investor like warren buffett get dragged into a huge ponzi scheme 2 words solar power we'll explain who was behind it and what they're facing now so much to get to on this very busy day so let's get started. and we begin with a move by the u.k. that could be seen as defiant to the trumpet ministration as the u.k. will allow wall way to build out part of its 5 g. infrastructure as we've told you britain's new prime minister boris johnson has indicated that he would put britain's need for 5 g. technology ahead of threats from the u.s. government that doing so could limit intelligence sharing on tuesday the british government said that it would in fact give permission a while way to build quote non-critical parts of the country's 5 g. networks britain's national security council concluded that the security risks that the chinese company presented could be managed to keep in mind while way has consistently denied the chinese government has back doors built into its technology and for all the attacks against while way

robots so that's a new chapter in this reflexivity story the observer changes the observed so warren buffett issues and annual newsletter for shareholders and berkshire hathaway everybody in the world reason i think is every february right and he observed a few years ago if you recall that. most investors would be better off in a passive index fund just stop treating in and out stop trying to be like soros just that that's how you lose money just do a passive index fund and everybody listen to him thus changing the dynamics of the market i that's why he has 128000000000 in cash but now this is what has emerged a new risk to the market caused by these sort of observations that everybody would just be better off and a passive index fund perhaps that would be ok if it was just a few people following his advice but when the entire market follow a set of his advice we're nearing a future where 3 index fund companies control corporate america the largest asset manager in the world black rock with ice shares has 7 trillion dollars under management then guard has $5.00 trillion and state street with

i might add because warren buffett might be even bigger than the fed remember he poured. into apple early in 2019 well this is a tweet about our people the biggest largest company in the world well i guess i am co saudi aramco is now the biggest but apple is the biggest corporation in america in case you missed that apple is up over 80 percent and $21000.00 is best year in a decade largest trade the company added $530000000000.00 in market value this year more than the market cap of all 5 comparables in s. and p. $500.00 twice the market value of intel so that's the price rise in apple and $21000.00 and of course right now the big loser of that well as carl icahn you know carl icahn was sold to warren buffett around $14150.00 a share sound close to $300.00 so it's a double since carl icahn and he sold it because he thought it was overvalued the market was overvalued he told everyone to get out of the market he stopped managing private money he only manages like this huge family office fun so he's been dead wrong i mean there's a multi-billionaire there's generally been ri

finally today how does a famous billionaire investor like warren buffett and a massive corporate entity like progressive insurance get caught up in a ponzi scheme a simple just attach the words solar power to it so here's the story the founders of d.c. solar couple by the names of jeff karpov and paul that karpov are now facing up to 15 years in prison for defrauding dozens of investors including warren buffett's berkshire hathaway so how do they do it with a couple claimed to have built $17000.00 solar power systems which they were going to sell to telecom companies like 18 t. and t. mobile turns out only $6000.00 existed and then they ran a ponzi scheme by paying back the 1st investors with money coming in from new investors so here's the thing why would anyone especially burch air hathaway warren buffett in progressive insurance fall for this because of solar energy reverse tax credits in 0 berkshire took $377000000.00 in tax credits from investing progressive insurance over $24000000.00 and they now have are facing charge backs for those credits so chris the kind of comes off like t

add to this and probably not as much as lvmh. >> throughout the course even if you weren't a warren buffett expert, you know that buffett is not the type to overpay. so maybe it's just the idea that he doesn't want to get into a bidding war with europe's richest man who garnered $30 billion more -- >> who is now worth more than warren buffett so he's going against the guy who's going richer than him. that doesn't happen often to warren buffett. >> robert, you've probably made the point before we've talked about warren buffett holding off on acquisitions before. people thinking that he should do something when people think he should do a, he does z but it reminds me of gilead in biotech. people were waiting for gilead to use its hordes and hordes of cash to get it back to the area it was with hepatitis c and it did a deal and people were disappointed when you've waited this long, it gets even harder to do the right deal. >> let's stay on the biotech side of things pharma companies are apparently ringing in the new year for sure with a bunch of price hikes, increasing the list price for hundr

forbes he was hailed as the great savior merit he is the the champion he was like as great as warren buffett he was like the man great and this is the company ever since and they've received bailout after bailout they received bailouts during the 2008 financial crisis here's boeing. 2011 you know this is when they brought in the 737 max as a response to air bus out competing them here is when vesper starter rewarding them for turning into financial engineering. from 2016 to 2017 they fired 8000 employees at the company including 1332 engineers and look what of course happened to the stock price investors tell ya keep doing this get rid of those engineers they cost too much it's too slow we want results this day to day within the hour we want the stock price to keep on going up and of course it didn't keep on going up but eventually of course if you don't have engineers then you can't design and engineer a plane to fly in the sky right the barbarians and the vandals have penetrated the enterprise that was once called the united states of america and they can't print this garbage fia money qui

david: warren buffett, is he a value investor? john: the greatest. people talk about michael jordan being better than lebron james, but there is no question that warren is the best ever. david: value investing is easier done when the markets are down. when they are high, there are not as many bargains. have you been doing the last 10 years because markets are high? john: we have been able to buy terrific bargains when the market was bargained -- bottoming. we have great brands like cvs, royal caribbean, and true bargains. on the markets recovered, some sectors stayed cheap, media, we and companies like viacom madison square garden network. those stocks are cheap. services companies, companies like lazar. there are some sectors that are totally neglected even as the markets recovered. david: the united states economy was in a recession that ended june, 2009. for 10 years we have been in a growth cycle, and it is one of the longest in our country's history. therefore, there has not been a lot of depressed stock prices for this period of time. are you ho

our largest investor is warren buffett. he owns 11% of the company.fter years of swearing off the industry he had a saying i love, he says you guys are the chicago cubs of the business world. you not only had a bad decade, you had a bad century. [laughter] so we got our bad century out-of-the-way and we are now in a place where we have fixed the business. david: he changed his mind. he used to say if it capitalist had seen the wright brothers take off he would have shot them down. there were no profits in the airline industry for 100 years. but that has changed. ed: it has changed and he wouldn't say that today if you were to ask him. this year is the fifth year in a row our profits will be in excess of the $5 billion. david: revenues or work percentage in the u.s. and outside? ed: two thirds u.s., one third international. david: is international more profitable? ed: just the opposite. international is more difficult, plans are bigger, fuel costs more, service levels are substantially higher, and ticket prices because there is a lot of competition int

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then why is warren buffett 120000000000 in cash coming form buffett putting that money to work so but warren buffett has a track record that is vastly superior to ballio so i i don't understand why he thinks we're interested in this thoughts he's obviously trying to justify his low returns last year the nasdaq was up 40 percent the stock markets were up in general about 25 percent he himself has is an investor is only received 0.25 percent i don't know if that even covers all the fees they have to pay him and his crew but he lost money but maybe. now he's capitulating that could be a sign of his capitulating is like i'm going to jump into this market maybe he didn't believe in it because a lot of people are intellectualising this and the fed can't control everything the fed can't do this the fed can't do that what he was trying to do perhaps was fight the fed a lot of people try to fight the fed peter schiff tries to fight the.

things like earnings and growth potential that's ridiculous right don't be trying to be like warren buffett any more even he's like sitting on over 125000000000 in cash because he still has this old notion of like looking for value and he doesn't find any so he sits there in cash and the meantime the ordinary investor is pouring into index funds index funds breakthrough 10 trillion dollars in assets mark amid active exodus relentless rise of passive investing has transformed the business of managing assets keep in mind in america life expectancy is down and for mortality is up and the spread between the richest and poorest is widening like you'd expect in the middle ages during feudal times look in san francisco in los angeles you can see what's happening right now particularly in san francisco you've got a huge population the halmos people who are developing medieval diseases that are getting typhus and other types of diseases diseases and clipping coupons playing which i haven't seen in hundreds of years so i would predict in the next year or so tim cook over there at apple and others wil

our largest investor is warren buffett. he now owns 11% of delta.nd warren, after years of having sworn off the industry, had a saying which i love -- he said you guys are the chicago cubs of the business world. you not only had a bad decade, you had a bad century. [laughter] david: right? ed: so we got our bad century out of the way. and we are now in a place where we have really fixed the business. david: you changed his mind, because he used to say, "if a capitalist had been at kitty hawk seeing the wright brothers take off, he would've shot them down." because there were no profits made in the airline industry for 100 years when you compare the profits versus the losses, but it has changed a bit now? ed: it has changed. he wouldn't say that today. this year will be the fifth year in a row our profits have been in excess of $5 billion. david: ok, and your revenues are -- what percentage in the u.s., what percentage outside? ed: our revenue is about two thirds u.s., one third international. david: international, is that more profitable than u.s. g

thanks but no thanks warren buffett's decision to turn down the chance to buy tiffanys as the secondange" starts right now. >>> welcome back a very happy 2020. i'm in for brian sullivan. let's check at the headlines outside the world of business with frances rivera. good morning and happy new year. >> we start this morning remembering an all-time yankee's legend don larsen has died at the age of 90 years old. he pitched the first and only world series no hitter and perfect game in 1956 the yanks went on to win the world series he took top honors he won another league with new york and then was shuffled around the league. >> nba commissioner david stern has died at age of 77. credited for transforming the league under his leadership, the league launched seven new teams >>> the u.s. embassy in baghdad is secure. using tear gas before demonstrators dispursed. no reports of any injuries in that assault here on this second day of january and hopefully on the third, you'll get your voice back >> i have my fingers crossed disclaimer it is not from partying thank you for asking that. let's l

plus boeing soaring on reports that warren buffett is jumping into the game, but there's one bearish analyst who says sell this stock he'll be here to make this case. later, oil prices rising as tensions in the middle east ratchet up are higher prices here to stay we'll hear from the ceo of marathon oil "power lunch" starts right now >> the dow off the lows of the day but still down b about .40%. the s&p in the red as well down a quarter of a percent look at the north ameriasdaq in stocks check out micron and western digital. they're surging after cowen says both of these stocks as a buy. micron up almost 8%, tyler >> the market's largely shaking off concerns about iran instead focusing on hopes for earnings season but are those expectations too high bob pisani has more. hi, bob. happy new year >> hi, tyler this is a very different market from this period last year last january, there were low expectations for stocks in 2019 and the market was cheap the s&p was at 13.9. that's below the historic norm fast forward now, 2020, the it's the opposite there's high expectations for 2020 sto

even warren buffett's name is mentioned. >> not so farfetched. looked at its 218 enterprise value. so you put a premium on that. you would see why private equity would want to look at this. cash flow is high. i would be concerned with, say it happened, what would boeing book like 10 years from now spit it out into the public market loaded up with debt not like it is today. charles: this deal reverberates beyond just boeing. >> in terms of math the market cap of boeing is about $190 billion. the largest private equity firm is blackstone at 60 or 65 billion. boeing is three times the size of blackstone. so you would have to have a group of people, you know, blackstone, buffett, a bunch of people putting their money -- charles: not farfetched though, is it? >> theoretically it could happen. don't discount the fact the improvement in the stock today, byron wien released his annual 10 surprises. boeing was one of the surprises, he spoke favorably bit. that may have contributed to the rise of stock. charles: byron wien predicted two more rate cuts. >>

you wait until warren buffett starts buying. it comes out warren buffett bought it 10% below market that's the day you buy. >> i can't think back in my career that had a company with 11 billion-dollar in one year that goes to a billion and the stock down 30% from highs what six, nine months ago. to me the stock has been out of wab whack. disconnected from the fundamental ftds i think june or july seems optimistic at. at some people you see the analysts taking rach et cetera to the 2020 estimates. but remember it traded at 100 early 2016 above 400 last year there is more room. >> they were producing in the 800 to 900 phil lebeau says no this is the 737 product. this is their product. >> but they have a ton of inventory already. you guys could all be right on this but why wouldn't they be more conservative rather than more aggressive that's what i heard today. >> i don't think it's up to them i think the faa has a huge part to play. >> for sure. >> they are going to be uber conservative the fa. a with this. well past june, july. >

warren buffett owns 8% of it. it's actually a larger ev maker than tesla is in china.ite as cool looking and we are going to go out with carlton's pick. >> 's picking this sports betting team are going for diamond eagle. it announced last month it's going to. jack: not making money yet, but a lot of potential out there. >> a lot of potential, it's a bet, deafly about. jack: thanks for those ideas to remorse out this weeks of barron's.com different files on twitter at barron's online, that's all for to kill that. we have a lot coming on next week, i'll see you you here, have a good weekend. >> from the world economic forum and davo switched on here is a special edition of maria wall street. maria: happy weekend everybody welcome to the program the looks of the week it was in position you for the week ahead. this week coming to the world economic forum here and davo switch on. a big program weekend just a few month my one-on-one interview with donald trump we talked about his priorities for second term as wells get his reaction to the senate impeachment trial underway. t

warren buffett owns 8% of it. it's actually a larger ev maker than tesla is in china.t quite as cool looking and we are going to go out with carlton's pick. >> 's picking this sports betting team are going for diamond eagle. it announced last month it's going to. jack: not making money yet, but a lot of potential out there. >> a lot of potential, it's a bet, deafly about. jack: thanks for those ideas to remorse out this weeks of barron's.com different files on twitter at barron's online, that's all for ♪ ♪ >> we don't believe that they have come anywhere lose to meeting their burden for what they're asking you to do. in fact, we believe that when you hear the facts and that's what we intend to cover today, the facts, you will find that the president did absolutely nothing wrong. >> welcome to journal editorial report, i'm paul gigot, that was white house counsel pat cipollone previewing defense as impeachment trial comes to a