. >> the warren buffett berkshire hathaway beating on earnings but >>> welcome back, let's get a market flash on ibm. seema mody back at headquarters with that. >> the warren buffett berkshire hathaway beating on earnings but a loss of $2 billion from the investment in ibm. but berkshire is sticking behind the company saying ibm continues to be profitable and generate significant cash flows. we have no intention of disposing our investment in ibm common stock. and that we expect the fair value of our investment in ibm will recover and ultimately exceed our costs. sara, ibm shares have been underperforming, down about 14% year-to-date. definitely not a winner so far this year. >> seema mody. thank you for the update. dan, we knew this was the loser recently for warren buffett and now we know it is a $2 billion loss this quarter. >> he talked about how there is a lot of cash flow that they are using to buy back their stock. >> and they are arguing they are buying stock and investing. >> they are just managing earnings and the earnings and the sales are declining. i'm shocked -- >> the jus

warren buffett's berkshire hathaway beating on earnings but it saw unrealized losses of approximately $2 billion from its investment in ibm. but berkshire is sticking behind the company saying ibm continues to be profitable and generate significant cash flows. we currently have no intention of sfoezing our investment in ibm common and that we expect the fair value of our investment in ibm will recover and ultimately exceed our costs. sara, ibm shares have been underperforming the major indices, down about 14% year to date. definitely not a winner so far this year. >> seema mody. thank you for the update. dan, we knew this was the loser recently for warren buffett and now we know it is a $2 billion loss this quarter. >> it's funny, he talks about how they're generating a lot of cash flow that they are using to buy back their stock. just blow it up. so like at the end of the day -- >> they had argued that they are buying that stock and investing. >> they are just managing earnings, and that's all they're doing. the earnings are declining and the sales are declining. >> the justification

. >>> and warren buffett's berkshire hathaway saw its operating profit actually slip in the most recenter. that's the number the investors look at in this firm's report as it offers the best read of the conglomera conglomerate's performance. the company did see quarterly profit double following its recent kraft heinz acquisition, though. class b shares fell initially after the close but during the regular session the stock was off a fraction to $136.38. >>> and now to our market monitor who says individual stock selection is key in this low-return environment. the last time he was on in february he recommended symantec, which is down 19%. microsoft, which gained 25%. and qualcomm, which is down about 25%. he's jordan posner, senior portfolio manager at matrix asset advisers. and jordan, thanks for being here. >> pleasure. >> we don't have that much longer in 2015, but what is your outlook for u.s. stocks for the end of the year? >> well, we think there's still a chance for bouts of volatility as we've seen in the third quarter. and then of course over the course of october in reverse. w

the site getaround offers $1 million in liability coverage backed by warren buffett's company berkshire-hathaway and you want to check policies before you hand your keys offful you could potentially cover all the coasts of owning a car if you get into that. >> just thinking about this. >> nina on the four wheeler. >> she's tough. >> it's pretty cool right? >>> a bold smoking ban that >> exactly where it would be in place and why some say it just goes too far. next. flush. >> and i'm bill ritter new at 6:00 we are getting reaction into the eyewitness newsroom in the verdict in the trial. stunning verdict of repoussed mobster for the -- reputed mobster for the lufthansa heist. wait until you hear his reaction to his not guilty verdict. >> plus the best and most expensive solution to the frequent delays on new jersey transit? tonight a new deal to build new tunnels. but who's going to pay that $20 that and more next at 6:00. meet the moore's! we're the moore family, and as you can see, we need an internet that can do more. we do more games, and more streaming. so we need more speed. that's why we s

joining me to discuss this is someone who covers warren buffett and berkshire hathaway for bloombergews. you selected is by mentioning that kraft heinz was great to be a big gain. was it as you expected? >> it was right in line. the second quarter report guided us all that it was going to be a big number. it came in roughly at that amount. you know, really, that was the headline story, or the headline number for the earnings report. as you flagged, number of these investments have been struggling. interestingly, in the report that came out on friday, he said he was sticking by ibm, even though he has about $2 billion in paper losses on that state. walmart, as all, hasn't been great for him. neither has american express commuter. noah: the stock portfolio has been struggling. the question really is for berkshire shareholders, how much are they focused on that vs. operating companies? know, it is a collection of dozens of businesses that are doing all sorts of things, and every quarter you get a 40-page report , and he doesn't go into too much depth about what is going on at those busi

warren buffett to go find his next big elephant? yeah, i think it puts an underline. berkshire hathawayore about the deals that warren buffett can do rather than a stock portfolio. it's an important part of the company but where he is adding value of these days is by going out and buying companies. kraft-heinz fits that mold even though it's technically a stock holding now because he does not have complete control of the company. the other thing that should be progress that has been at berkshire hathaway is the deal he did in august to buy a company called position cast parts which is a supplier to the aerospace industry. berkshire shareholders like that because over the long haul, they think the addition of that business will improve earnings. scarlet: this speaks to his relationship with 3g? alix: that has helped some of these mergers? >> yes, no doubt, it has been a hugely lucrative partnership for berkshire hathaway. he has taken some heat about some of their business practices. 3g has aggressive managers and they tend to cut jobs and make operations very lean. financially, it has b

, punches have been thrown between activist investor billionaire bill ackman and berkshire hathaway leaders warren buffettover the morality of their respective investments, and this from a guy who wants to be warren buffett. yes. most recently, bill ackman, after saying he wanted to be like buffett, has criticized the oracle of omaha's massive holdings in coca-cola. so does warren buffett have an image problem? charlie gasparino thinks so. the debate is on, because i think it's ackman who might have an image problem. >> i'm to not going to defend bill ackman here, but i think what's going on with warren buffett right now is after, you know, decades of great investment success, i think what he did in the last, i would say since president obama's become president, has gotten way too political. and now, i mean, i don't think you can with a straight face go out there and advocate higher taxes -- and this is what he's done -- on small businesses and turn around and take most of your, take most of your income in capital gains and get taxed at a lower rate. i think that's underscoring a sort of contempt on wall

what about warren buffett and his baffling year? berkshire hathaway'seo has had a number of bad bets. but the one that paid off got the company $9 billion. making up not so hard to do. shares of hewlett-packard rising on the first way of trade since the company split into two. we are about 90 minutes into the trading session. we go to matt miller. are looking at games after the best month we have seen since october of 2011. we are looking at the s&p. 2091. a gain of 12 points. 17,755.s at take a look at the bloomberg pay rip,you pick up wp -- w let me get rid of these pop-up alerts, which is great when you are not on live tv -- the chance of the fed moving in december now at 48%. we have seen that at 50% all day. think theore traders fed will raise rates in december. that has an effect on investors across asset classes. look at the 10 year. the yield declining. investor selling bonds. and change in december when you have that fed rates rise. when the dead raises rates, you do not want to be holding bonds. when the fed raises rates, you may want to get i

we look at a company on by berkshire hathaway, warren buffett realized you are storing raw materialsnd when they want a new carpet you take it back and just created a relationship that goes on and materials don't need ned.e remie it puts money back into your pocket instead of drilling a hole. >> what about governments and the public sector? what can they learn? bill: congress is the engine of change and they often chase businesses. when the government shows up to regulate they decide they don't need to. that's what they can learn. the government can benchmark against these good practices and hold them out as the examples of what society is asking for. they say we like the sick products -- these safe products. reducing toxins, you can say, see these good people, copy them. we have carrots and sticks. regulators are sticks, businesses are carrots. the idea is create a caret big enough for the stick. -- a carrot big enough for the stick. >> has sustainability investment changed corporate interest in being more sustainable? has there been a flow-through impact? bill: people have decided

warren buffett getting one big investment right can make up for a lot of laggards. berkshire hathawayuarterly profit on friday. a pretax gain of about $7 billion on a stick and kraft heinz. -- stake in kraft heinz. railroad is spending heavily to regain market share and guy: is struggling with rising claims cost. markets wait with baited breath for data like the job creation numbers do this friday. but do these data show the real picture? yamarone is here to explain his doubts about these numbers. >> i don't know if it's down on the numbers and the validity. i think they are the best statistics in the world. my argument is, the fed policies of lower interest rate are not going to have an effect on the services sector as much as it used to have on the manufacturing sector when we were a manufacturing behemoth. we're just not interest rate sensitive. are notay we interest-rate sensitive, i mean with respect to employment. -- that sincetice the end of june 2009 at the end of the recession, the worst performing group for job creation is manufacturing. we don't need jobs. we don't use thos

warren buffett is number 2 on the tv screen. the berkshire hathawayposium was yesterday in new york so on he has been insulting valiant pharmaceuticals, they have immoral business practices, believe in the way they operate from a moral perspective. he shows up at the symposium and says coca-cola, who by the way berkshire has a gigantic -- warren buffett walks around with a coca-cola bottle all the time, basically attacked him. attacking coca-cola at this symposium. if you are talking about my company of will talk about yours. saying it causes obesity and diabetes. ashley: is this just childish by billionaires? >> two parents using them as pawns. it is ridiculous. >> he loves 2 billion on valiant. i can understand why he is upset. ashley: that is away it goes. value and has been in the news for a lot of not so positive reasons. cheryl: it is about the cards so watch it. this is that dicey game to play. ashley: so who won? >> i don't think anybody feels sorry for two billionaires. refined sugar is an epidemic but so is cigarette smoking and alcohol, buy

berkshire hathaway, you are paying above value. so you are paying for a huge premium for warren buffett.buy s&p 500, that is good vic. >> and here in new york. we've mentioned the new york a.g. going after ex on mobile. they have released a statement. we unequivocally reject allegations that exxon-mobil suppressed climate change research contained in media reports that are inaccurate distortions of the mobile nearly 40 year history of climate research. so also there for the record. >> they are going after exxon. i can assure you they are very, as they say, lawyered up, as a company. >> the dow or the fortune 500 is not lawyered up. >> good point. >> just when you thought the earnings might slow down. next week brings us macy's and nordstrom and a whole lot more. we'll preview those numbers for you right after this. we thought we'd be ready. but demand for our cocktail bitters was huge. i could feel our deadlines racing towards us. we didn't need a loan. we needed short-term funding. fast. our amex helped us fill the orders. just like that. you can't predict it, but you can be ready. anot

berkshire hathaway. the company is out with their filing. this tells us a little bit about what warren buffett what he's been buying and selling. if you do go through the math on there there are some changes in his portfolio. ibm that stock increased as buffett mentioned to us last time he was on cnbc he was buying some more. that stake in ibm did go up. more importantly perhaps there's a couple of major holdings that saw a decrease. walmart, his stake in walmart dropped by 7%. his stake in goldman sachs looks like it's down 13%. i just got off the phone with mr. buffett and asked him why he was selling. he said what he's doing with precision castparts. he plans to spend $22 billion of berkshire cash and borrow the other $10 billion. sales of goldman sachs and walmart said these were both non-insurance subsidiary. that's why they were sold. it's not a reflection of a loss of confidence in walmart or goldman sachs. he also talked a little bit of what he's doing because of the paris attacks. i'm not selling any securities because of the attacks in paris. not at all. won't be doing anything diffe