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

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

[@PoloLuciano]

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

[@aryankushwaha1964]

Yes😁

[@Darudo_sandstorm]

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

[@trooking1]

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

[@Guy_LastName]

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

[@alfa77qwx13]

@cannabased wtf? Every stock has value?

[@NoWayFolding]

aka Warren thinks his own company is overvalued

[@yeweyewe6247]

Thanks

[@ericnganga9070]

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

[@zeppirl]

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.

[@BullsBooyachaka]

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

[@JarodM]

👍

[@AuditorInvestor]

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

[@CEROtian9279]

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

[@AuditorInvestor]

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

[@williamdrijver4141]

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

[@ms8172]

Becky Quick is STUNNINGLY BEAUTIFUL!!

[@lionelbellec8458]

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

[@fhowland]

I love Becky Quick.

[@AuditorInvestor]

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

[@olivergilpin]

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]

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

[@olivergilpin]

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

[@billau307]

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]

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]

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

[@BullsBooyachaka]

@@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]

​@@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]

@@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

[@shanenolan085]

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

[@omppc]

GRATEFUL TO RESPECTED BECKY QUICKLY QUICK MINISTER...

[@themaestro9527]

2:55

[@MrRealEstate17]

Fuckin hilarious

[@Guy_LastName]

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]

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]

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

[@me-myself-i787]

​@@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.

[@MOBMJ]

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]

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

[@ChaceBonanno]

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]

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

[@kevinbalkwill8426]

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

[@susymay7831]

Warren likes and respects the interviewer :-)

[@justinpaz93]

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

[@a1bells501]

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]

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

[@putikeswarasudarsono]

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

[@wronggg]

Warren Buffett has never, ever been a trader.

[@ADFDGGE]

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

[@user-ql3ws5uz1d]

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

[@AuditorInvestor]

Superb interview. Wisdom just flowing out of Warren.

[@caedmonv55]

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]

Up there sounding like master roshi

[@ronniedelahoussayechauvin6717]

What or Who is Ein?

[@ChaceBonanno]

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

[@tensevo]

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]

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

[@Atombender]

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.

[@thecapone45]

His laugh is funny.

[@sommi888]

*We're only here for those legs* 💥

[@atharvarane1195]

You are here for that but I don’t

[@dustinconner9157]

Maybe you are.

[@Magesandrogue]

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

[@MrsGondee]

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

[@ppuh6tfrz646]

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]

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]

@@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.

[@SergiyMichael]

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]

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).

[@indifinity215]

funiest laugh at 2m55s... lol

[@Robert-dt3is]

💀

[@baaska0113]

H

[@seek3n]

I bet he bought some this week lol

[@omppc]

🙏🏌️‍♂️

[@bigmac5066]

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]

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]

Nobody is preventing anybody from investing..

[@fr0xk]

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

[@Makich8]

and again, those legs are phenomenal)

[@k2line706]

Legs

[@Echoloot]

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

[@ronniedelahoussayechauvin6717]

What Or Who is Ein?

[@Simonnnnnnnify]

Does the host sound like Hillary Clinton?

[@arnolddalby5552]

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]

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

[@erwinlbj462]

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

[@timshade2223]

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!

[@RedScareClair]

... What?

[@WPaKFamily]

@@RedScareClair lmao

[@chrisc1257]

Nobody is watching.

[@shankarbalakrishnan2360]

If the US trades a trillion dollars a day making its 300 a year - so let all the markets crash to zero❤❤🎉🎉 debt to gdp will become positive

[@SusieAspen]

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

[@wwood23]

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]

As opposed to what? Slave to your job?

[@ralphschraven339]

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]

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

[@98SPRINGERFXSTS]

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

[@omppc]

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.