May 19, 2016|
John Mooney (Show Contributor, Warren Buffett) by The Financial Exchange
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
We're joined by John Moody. Again he's a frequent co host of mine and occasional contributor how you doing John. I thought just the opposite what's that. Like America to host the prickly picture yeah let's. Let hey I gotta I gotta talk about how. The financial. Press he would do it Warren Buffett clearly wanted to talk about you including us. I'm not that he had but I imagine that I mean the Boston Globe and Harold would never stoop so low is to say that Warren Buffett has a plan. To burnish chopped daughters living room. All you have to do is go to war and brought the story in Avon pick out what Israel wants to buy. And the Red Sox and yankees played little league championship series chart it's everything perfectly and that is that true. As saying Warren Buffett buying apple. So what is going on what is going on with Warren Buffett and apple. Now. We've got a billion dollars worth of Todd coombs. Where do you Reggie intact going. In Elliott is the one offering the deal would shock right did anyone ever think Warren Buffett offered short broader free furniture. Abbott I still get the impression that Warren Buffett has veto approval there veto authority. So if Todd is gonna spend that kind of money don't you think there's at least a conversation or a couple of emails that went back and forth. There's a conversation but there's not veto power. There isn't there a total halt hold on are you you're saying there's no veto power anymore. I'm saying that there's a 128 billion dollar stock portfolio of the Berkshire Hathaway hats. He has given nine billion dollars each to talk intends to run those independently. All no different no different than if L we get treated open decides he wants to help chalks a lot of furniture can contend that without talking to warn about. How can we do know that they do you think that is under proper treatment and property right is it now. Why is it Bobbie if I mean he got to the he's already may need. You know three million on the. No it actually lost. Several hundred million dollar from the. No I thought he paid about ninety bucks a share well it's already announced it ninety bucks you lying down okay my yeah my dad. But what the number one you can buy it number two the person who did buy it paid probably about a 109 dollars share. So there are way underwater but. The my point is that. Would value investing. I mean there are certain Canucks if you know. And Warren Buffett is not comfortable buying technology stocks yet he bought IBM I think because he saw predictable Serb persistent and he liked the fact that they continually deliver the most services and continued to provide a vote expected in promised performance. But. I think when you're facing happening here is. A changing of the guard where people are now. Investing. Portions of Berkshire's portfolio. Quote at the same values. But a different perspective on what actually qualifies. You Oprah sure always slips are coping with what strong free cash flow well managed management in place. Most importantly sustainable competitive advantages but what has difficulty connecting that would tech companies. Kevin talk though. Seem to believe that apple can be that type of company. That's the real story here soap opera hasn't changed everything. The type of Berkshire the same but the new Berkshire the post Buffett Berkshire. May look a little bit different. That's OK that's OK I mean Warren's not gonna lift forever. Right and ended values will live I think well beyond. It's like at Berkshire. But it's put these guys you know 145. And once that before they have the same values they invested the same principle but the gonna end up with different text. Thanks and I think it's important Herbert Warren buff has changed his mind is that it won't really change anything but he has delegated now about 7% of the portfolio. Two managers whoever track record of doing this it would Z 85. It yeah I'm really sick we look at the meeting. And her convention absolutely. What is the most compelling television watching on the streaming. You really can't help or you didn't we actually even thought others on the screen right. But we're good view of the book. Now now and I I I thought it was a Mauritania. I just like but he says I live a more concerned about the words coming out of his mouth than than what he looks like but he's. I don't I really I don't think anything has changed very I think good you know things are still the same approach here. And it's gonna look different and just. It bothered me just keep people saying that somehow to exchange support one final what I might make of it is very significant about apple while it's true. Buffett didn't make this purchased I think it's very significant that one of these two we don't know which one it is probably ten or taught. One of these people decided of their nine billion dollar piece of the pie that they were best annual portfolio. One billion of that should be invested in apple pretty big deal. Yeah well and their make an eight utility there I think they're making Smart moves because they're going to China and they're going to India. And that's where the growth is going to be for apple they're not gonna grow that much more in the United States they might give to grow. If they're lucky they can grow three to 5% in the United States they go to China they can grow at 50% for ten years. What is special importance to our relationship with China which is deteriorating right now and a lot of rhetoric we heard politically. Make you the low while more concerned apple has said that India really is gonna be the next big story don't that's something that really cute and I don't. Brought this stuff is but the air with a lot of rhetoric going on in trade. Yep yeah that they the tariffs are threatening now. I mean maybe he used he threatens that the number archery actually means you know that there are in the senate tomorrow. Wars that we heard before every major trade wore me out. That's the 1930. Don't just talk. Yeah innate in aid debt that you would think by now they've lowered trade wars slowdown in the global economy. But talk of it gets a lot of boats up and what's rules concerning is on both sides of the aisle. Everybody's anti trade that's a big red like committee. Yup well in and trumps leading in the latest poll fox did a poll last night he's up over Clinton right now. And on the energy. And a lot of energy and enthusiasm factor it's like a hundred don't want I mean there's just nothing there will be Hillary. Supported the mile wide and inch thick I just don't see any a lot of enthusiasm on her part. And understand diseases like you're damned if you do damned if you don't. Yep yes and so it's beyond that I I think political risk is gonna continue to be an issue here. Yep or at least another five months right yeah I usually know who's gonna win by by Labor Day that. Male or. Yeah and I'd be curious to see what Wall Street wants here because when you look at a lot of these issues. I yelled don't come to conclusion that Clinton and Clinton may be more pro business but that dress strange political year deck very very hard to handicap. It sure is all right John bode thanks for joining us appreciate your time. Good ticket and come over the revenue of chuck you know working on it. I suspect there.