Warren Buffett on Berkshire share buybacks and what it takes to run a public company

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  • เผยแพร่เมื่อ 5 พ.ค. 2019
  • Warren Buffett sits down with CNBC's Becky Quick to share his perspective on share buybacks through the example of Berkshire and Apple.

ความคิดเห็น • 133

  • @PoloLuciano
    @PoloLuciano 4 ปีที่แล้ว +54

    I love Warren, he’s so adorable, he’s like your favourite Grandad

    • @aryankushwaha1964
      @aryankushwaha1964 2 ปีที่แล้ว

      Yes😁

    • @Darudo_sandstorm
      @Darudo_sandstorm 3 หลายเดือนก่อน +1

      He was as ruthless as anyone when he was young. Aging changes you a lot

  • @trooking1
    @trooking1 5 ปีที่แล้ว +56

    0:32, key point, Buffett says they only buyback stock if the current price is below intrinsic value per share.

    • @Guy_LastName
      @Guy_LastName 5 ปีที่แล้ว +8

      correct, companies repurchase in hopes that the price rises. so its usually a good sign if a company repurchases

    • @alfa77qwx13
      @alfa77qwx13 4 ปีที่แล้ว

      @cannabased wtf? Every stock has value?

    • @NoWayFolding
      @NoWayFolding 4 ปีที่แล้ว

      aka Warren thinks his own company is overvalued

    • @yeweyewe6247
      @yeweyewe6247 3 ปีที่แล้ว

      Thanks

  • @BullsBooyachaka
    @BullsBooyachaka 4 ปีที่แล้ว +64

    2:52 is me, when I would see that lady walk in for the interview

    • @JarodM
      @JarodM 4 ปีที่แล้ว +2

      👍

    • @AuditorInvestor
      @AuditorInvestor 4 ปีที่แล้ว +1

      The idiotic upvotes on your asinine comment show why most of the world is stupid.

    • @CEROtian9279
      @CEROtian9279 3 ปีที่แล้ว +2

      @@AuditorInvestor Yeah... Serious John would not make any jokes :)

    • @AuditorInvestor
      @AuditorInvestor 3 ปีที่แล้ว

      @@CEROtian9279 Reading it again, it's still idiotic.

  • @ericnganga9070
    @ericnganga9070 5 ปีที่แล้ว +12

    8:26 If you belch too often at the dinner table you don't get invited to dinner parties anymore.

  • @fhowland
    @fhowland 5 ปีที่แล้ว +36

    I love Becky Quick.

    • @AuditorInvestor
      @AuditorInvestor 4 ปีที่แล้ว

      It doesn't matter. The idiotic upvotes on your asinine comment show why most of the world is stupid.

  • @zeppirl
    @zeppirl 4 ปีที่แล้ว +17

    This set is messed up. Why are they on high chairs and there feet on black boxes ?. Also what's the constant fan or refrigerator noise in the background ?. Get proper chairs and sort out the background noise CNBC.
    Warren's a legend with his answers and the anchors got fantastic legs are the only things right here.

  • @olivergilpin
    @olivergilpin 4 ปีที่แล้ว +5

    8:25 - if you belch too often you don’t get invited again
    Keep your feedback about what you think should be done instead to an absolute minimum

    • @dhidhi1000
      @dhidhi1000 3 ปีที่แล้ว +1

      Crazy! I guess this is the best move on more traditional businesses, but definitely opposite to the "startup culture" I would say

    • @olivergilpin
      @olivergilpin 3 ปีที่แล้ว

      @@dhidhi1000 I think it applies everywhere, if one realises they themselves make many mistakes, then letting others make mistakes without judgement is generally wise

  • @ms8172
    @ms8172 4 ปีที่แล้ว +25

    Becky Quick is STUNNINGLY BEAUTIFUL!!

    • @lionelbellec8458
      @lionelbellec8458 4 ปีที่แล้ว

      Sorry mates, but I have known some slices of cold fish which were more exciting.

  • @williamdrijver4141
    @williamdrijver4141 4 ปีที่แล้ว +1

    She was 45 when this interview was published? Wow! Hadn't expected that :-) She matches well with Warren, great and informative interview, al always

  • @omppc
    @omppc ปีที่แล้ว

    GRATEFUL TO RESPECTED BECKY QUICKLY QUICK MINISTER...

  • @shanenolan085
    @shanenolan085 17 วันที่ผ่านมา +1

    2:45 "He didn't like buying back shares..." 😂😂😂😂 Steve Jobs like holding cash... just like Berkshire

  • @MOBMJ
    @MOBMJ 3 ปีที่แล้ว +3

    It’s funny I don’t think I’ve ever heard buffet say the word options because of how much he loves stocks and long-term investments

    • @WPaKFamily
      @WPaKFamily ปีที่แล้ว

      It wouldn't be weird for him to mention options since he literally is in the insurance business. Just some food for thought.

  • @billau307
    @billau307 5 ปีที่แล้ว +14

    Companies buy back is becuz it will increase stock price and market value.
    CEO’s commission r related to the stock price and market value.

    • @BullsBooyachaka
      @BullsBooyachaka 4 ปีที่แล้ว

      If they buy their own shares, another one is selling them!
      So the stock price doesn't neseccarily need to rise if they buy back shares.

    • @ralphschraven339
      @ralphschraven339 4 ปีที่แล้ว +2

      @@BullsBooyachaka It's not necessary, but extremely likely, as per how supply and demand works. Less supply, same demand, prices tend to rise.

    • @BullsBooyachaka
      @BullsBooyachaka 4 ปีที่แล้ว

      @@ralphschraven339 yeah but the main reason still remains being that they believe in an undervalued stock price and see no better way to invest their money in the operative business.
      If it would be that simple to increase their own stock price there would probably never be a recession. On the long run the stock price is always orientating to the fundamentals

    • @ralphschraven339
      @ralphschraven339 4 ปีที่แล้ว

      ​@@BullsBooyachaka I agree that the given price changes are temporary. Buffet therefore approaches the buyback issue as a matter of value investment and not as a way to fix falling share prices. So I guess we do agree; I just fumbled over your initial statement without quite seeing through how it opposed the opinion of Bill.

    • @BullsBooyachaka
      @BullsBooyachaka 4 ปีที่แล้ว

      @@ralphschraven339 absolutely.
      I just wanted to point out that the impact on the stock price and even the commission of the CEOs on the long run isn't that important and definitely not the main reason

  • @themaestro9527
    @themaestro9527 4 ปีที่แล้ว +11

    2:55

  • @ChaceBonanno
    @ChaceBonanno 4 ปีที่แล้ว +1

    Do you have all the money you need to develop your business?
    Is the stock trading for less than what it’s worth?
    Only when both answers are yes should you buy back stock.

    • @fr0xk
      @fr0xk ปีที่แล้ว

      A stock doesn't worth anything. The company does. Stock gives you ownership rights and you recieve dividends for holding it. Those dividends have value because it creates an actual direct monetary connection between investors and the company

  • @justinpaz93
    @justinpaz93 5 ปีที่แล้ว +26

    Warren buffet trades stocks but i've never seen him in front of a computer

    • @a1bells501
      @a1bells501 5 ปีที่แล้ว +6

      He probably does it old school and calls companies to buy stocks so probably has a whole ton of stock certificates. He once said in an interview that he doesn’t have any computers in his office as he doesn’t like them or something like that. My problem with stock certificates is if stock price changes how do you know the value of your stocks. If you trade stocks online you can view the changes in stock price with ease and it’s convenient to buy and sell.

    • @Edgar-wq9qz
      @Edgar-wq9qz 4 ปีที่แล้ว +20

      You can bet he has an army of top tier traders working for him.

    • @putikeswarasudarsono
      @putikeswarasudarsono 4 ปีที่แล้ว +3

      People working for him were allocated some money. I think the way it works is they pitch, Warren and Munger approve.

    • @wronggg
      @wronggg 4 ปีที่แล้ว +12

      Warren Buffett has never, ever been a trader.

    • @ADFDGGE
      @ADFDGGE 4 ปีที่แล้ว +2

      @@wronggg in his beginning years he traded cigar butts , munger convinced him for the long term vision

  • @susymay7831
    @susymay7831 ปีที่แล้ว

    Warren likes and respects the interviewer :-)

  • @Guy_LastName
    @Guy_LastName 5 ปีที่แล้ว +6

    so the apple/all stock prices are going to slip due to the tariffs, and apple calculated the intrinsic value before the tariffs. soo the intrinsic value could be WAY more than the current price during the tariffs?
    may be different for apple because they get many products from china, but domestic companies with higher intrinsic values than current price could be hidden gems during the trade war

    • @yudistiraliem135
      @yudistiraliem135 4 ปีที่แล้ว

      kjl maybe, but the efficient market hypothesis means that Apple slump due to tariffs are already priced in since that’s public information. Unless there’s new development on the market of course like trade war going longer than expected

    • @tygaclericuzio4130
      @tygaclericuzio4130 4 ปีที่แล้ว +1

      Apple did 75 billion dollar stock buy back Artificial the price goes up now stock is 288 going to 300 soon

    • @me-myself-i787
      @me-myself-i787 24 วันที่ผ่านมา

      ​@@yudistiraliem135The market clearly isn't efficient because total-market index funds make money, whilst in an efficient market, all the growth would already be priced in.

  • @kevinbalkwill8426
    @kevinbalkwill8426 4 ปีที่แล้ว +1

    Is it me or dose buffett do the voice for elmer fudd

  • @user-ql3ws5uz1d
    @user-ql3ws5uz1d 3 ปีที่แล้ว +5

    Interesting to see Becky's development as an interviewer over the years as well

  • @sommi888
    @sommi888 5 ปีที่แล้ว +64

    *We're only here for those legs* 💥

  • @tensevo
    @tensevo 5 ปีที่แล้ว +5

    A CEO who makes a tonne of money, has no idea what to do with it, takes it and invests in Berkshire Hath, now that's my kind of CEO.

    • @lakshmimondal3808
      @lakshmimondal3808 4 ปีที่แล้ว

      And also donates it to charity.that shows character. Another plus

  • @Atombender
    @Atombender 4 ปีที่แล้ว +6

    It's funny that Buffett keeps complaining about his secretary paying a higher percentage than he does, while at the same time reaping massive benefits because of Trump's tax cuts.

  • @ronniedelahoussayechauvin6717
    @ronniedelahoussayechauvin6717 ปีที่แล้ว

    What or Who is Ein?

  • @caedmonv55
    @caedmonv55 2 ปีที่แล้ว

    I'll never like stock repurchases. I believe Rick Rule would say that reducing assets for a hope that someone will like the stock more is a wash or a fool's gambit. Of course, Buffett says that a gold mine (Rick's domain) is just a future hole in the ground. I would think that by the same kind of logic Buffett would see that a company that gives all its money away to the market (not even the current shareholders) trying to look better is a future bankruptcy.

  • @ritzkola2302
    @ritzkola2302 4 ปีที่แล้ว +1

    Up there sounding like master roshi

  • @Magesandrogue
    @Magesandrogue ปีที่แล้ว

    Underneath an exterior of good humor, Warren can be a vicious shark when it comes to making money.

  • @AuditorInvestor
    @AuditorInvestor 4 ปีที่แล้ว

    Superb interview. Wisdom just flowing out of Warren.

  • @SergiyMichael
    @SergiyMichael 5 ปีที่แล้ว +13

    So Buffet thinks his co shares are overvalued, this simple.. And grossly overvalued given the length of gibberish he went into in order to avoid answering directly

    • @ralphschraven339
      @ralphschraven339 4 ปีที่แล้ว +2

      No, he didn't say or left implied they were overvalued, and he wouldn't mind if they were. It's not his job to tell the shareholders when to buy and sell as per his valuation of the business. It's his job to manage and grow the company. And that's what he does. The question isn't whether his stocks are overvalued, but whether they are both significantly undervalued and other options such as acquisitions or different investment opportunities aren't as promising at the time, as well as having the available cash (the latter of which he clearly does).

  • @MrsGondee
    @MrsGondee 4 ปีที่แล้ว +1

    Didn't age well, they are buying shares currently at ATH lol

  • @ChaceBonanno
    @ChaceBonanno 4 ปีที่แล้ว +2

    9:24 Even the self made wealthy can be poor investors

  • @bigmac5066
    @bigmac5066 5 ปีที่แล้ว +1

    What I would like to know about Warren Buffet is what’s his investment flaws, weaknesses and bad habits. What’s his true beliefs on capitalism as it relates to racial barriers, poverty, world dominance, systemic racism and religious warfare. I guess only the lucky few around him would know that.

    • @BullsBooyachaka
      @BullsBooyachaka 4 ปีที่แล้ว +1

      And you think any other system could solve that better?
      Capitalism is based on benefit to another person so you will get money/service of him. And that is for example the way rome went the biggest empire in europe.

    • @brazenbull636
      @brazenbull636 2 ปีที่แล้ว

      Nobody is preventing anybody from investing..

    • @fr0xk
      @fr0xk ปีที่แล้ว

      Where's capitalism? All I see is liberals preaching social democratic system full of bailouts, buybacks and VCs raising funds recklessly from taxpayers money. If anything, this is closer to socialism than capitalism

  • @thecapone45
    @thecapone45 4 ปีที่แล้ว

    His laugh is funny.

  • @ppuh6tfrz646
    @ppuh6tfrz646 ปีที่แล้ว

    0:13 I don't really understand this.
    If Buffett is confident about Berkshire Hathaway's future then wouldn't it better to buy back the shares even at more than the current intrinsic value rather than have an enormous pile of cash that's earning very little interest?

    • @me-myself-i787
      @me-myself-i787 24 วันที่ผ่านมา

      Well, he obviously wanted to wait for the 2020 crash so he could use that cash to buy shares cheaper.
      Because the price you buy at is one of the most important aspects of total returns.

    • @ppuh6tfrz646
      @ppuh6tfrz646 24 วันที่ผ่านมา

      @@me-myself-i787 I understand that but if Berkshire Hathaway's share price is likely to increase at a higher rate than current interest rates (which will probably go down soon) then he is better off buying back Berkshire shares.

  • @indifinity1
    @indifinity1 4 ปีที่แล้ว +2

    funiest laugh at 2m55s... lol

  • @timshade2223
    @timshade2223 4 ปีที่แล้ว +2

    Been watching this man for a few years now. I've wished many times HE would've run for president. He hates crooked politicians more than trump!

  • @arnolddalby5552
    @arnolddalby5552 5 ปีที่แล้ว +4

    Cash is king and it means you can buy companies at knock down prices which means Warren Buffett is a genius and so am I. Haha. Cash buyers can always get a huge discount. Your money is made when you buy not when your sell. Haha.

    • @ADFDGGE
      @ADFDGGE 4 ปีที่แล้ว +1

      so much is true , buying at a discount is easier then selling at a premium

  • @seek3n
    @seek3n 4 ปีที่แล้ว

    I bet he bought some this week lol

  • @baaska0113
    @baaska0113 4 ปีที่แล้ว

    H

  • @omppc
    @omppc ปีที่แล้ว

    🙏🏌️‍♂️

  • @Makich8
    @Makich8 4 ปีที่แล้ว +4

    and again, those legs are phenomenal)

  • @k2line706
    @k2line706 3 ปีที่แล้ว

    Legs

  • @Echoloot
    @Echoloot 3 ปีที่แล้ว

    www.ebay.de/itm/274329978138
    Ein Poster, dass Buffett, Munger, Graham und Fisher verbindet... Viel Spaß! :D

  • @Simonnnnnnnify
    @Simonnnnnnnify 5 ปีที่แล้ว

    Does the host sound like Hillary Clinton?

  • @erwinlbj462
    @erwinlbj462 3 ปีที่แล้ว

    MY FATHER DONALD J TRUMP............ AND SENATOR ERWIN TRUMP.................. ( SENATOR WILAYAH INDEPENDENT )...................................

  • @chrisc1257
    @chrisc1257 5 ปีที่แล้ว

    Nobody is watching.

  • @wwood23
    @wwood23 4 ปีที่แล้ว +2

    I can totally believe this guy got conned by Anna Delvey and Heinz. He’s not as smart as he pretends to be. Anyone can gain massive wealth through compounding interest. Just requires a lifelong commitment and most people would rather live than be a slave to saving money

    • @vedantma
      @vedantma 4 ปีที่แล้ว +4

      As opposed to what? Slave to your job?

    • @ralphschraven339
      @ralphschraven339 4 ปีที่แล้ว +5

      If anyone could compound their investments consistently over the span of many decades, then why isn't every 80+-year-old a billionaire by now? Quite strange, this lack of "easily made money" billionaires.

    • @miguelpereira9859
      @miguelpereira9859 4 ปีที่แล้ว

      So most people should be a slaves of their fleeting and immediate desires (living) then being financially independent (being a slave to saving money

  • @SusieAspen
    @SusieAspen 3 ปีที่แล้ว

    I don't think his son can really run the business when Warren passes. I can't imagine what he will do to it.

  • @98SPRINGERFXSTS
    @98SPRINGERFXSTS 4 ปีที่แล้ว

    how could you possibly say that warren is the smartest shthead and never even met him????? like i said before....as they get older, they get greedier

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    @omppc ปีที่แล้ว

    NEHRU PLANETARIUM SOLD TO RESPECTED SIR GITAM INSTITUTIONS COOK, CHICAGO PIZZA, OMM GIFT SHOP, CHINU-OM ARTS, CHIPOTLE, SAN FRAN PIER 1-401, MOTEL NAV-E-NIPPOM AT RAIPUR,CHHATISGARH, NARULA'S,SAMBALPUR, ROURKELA, UTKAL HOSPITALITY LTD.