WEB on CNBC Monday with Ted, Todd, and Traci

[Guest deepValue]

http://www.bloomberg.com/news/2014-03-05/buffett-s-book-pick-guides-fuss-to-marks-beating-market.html

 

 

Buffett’s Book Pick Guides Fuss to Marks Beating Market

 

That has to be the most confusing article title I've ever read.

[Liberty]

That has to be the most confusing article title I've ever read.

 

Sometimes I think Bloomberg does it on purpose. Often I click on an articles on their site just to figure out what it's about by reading the intro because the title baffled me. A new kind of clickbait, maybe..

[LC]

I'm still open to the possibility that he has high-functioning autism and is able to read through an AIG annual in 3 hours and retain it because he experiences the information differently. Or not  ;D

[Palantir]

^His...er...romantic life has been too interesting to believe a diagnosis of high functioning autism.  ;D

[Guest deepValue]

I'm still open to the possibility that he has high-functioning autism and is able to read through an AIG annual in 3 hours and retain it because he experiences the information differently. Or not  ;D

 

Or maybe because he's been at this for 60+ years...

[Mephistopheles]

^His...er...romantic life has been too interesting to believe a diagnosis of high functioning autism.  ;D

 

Are you talking about Katherine Graham? Wasn't she like 13 years older than him and in her 50s or even 60s when they had their affair? Buffett could have had a much more "interesting" romantic life! :D

[alpha231616967560]

Does anyone have the link to the full interview with the Three Ts? I have only seen the 3 minute excerpt available so far.

 

Cheers,

Paul

[Liberty]

Does anyone have the link to the full interview with the Three Ts? I have only seen the 3 minute excerpt available so far.

 

Cheers,

Paul

 

Here you go:

 

http://fm.cnbc.com/applications/cnbc.com/resources/editorialfiles/2014/03/03/2014-03-03%20Ask%20WarrenBuffett%20complete%20transcript.pdf

[alpha231616967560]

Does anyone have the link to the full interview with the Three Ts? I have only seen the 3 minute excerpt available so far.

 

Cheers,

Paul

 

Here you go:

 

http://fm.cnbc.com/applications/cnbc.com/resources/editorialfiles/2014/03/03/2014-03-03%20Ask%20WarrenBuffett%20complete%20transcript.pdf

 

Thanks Liberty - I appreciate the transcript, super helpful. I also like watching the video (so much of communication is in the subtlety of body language, etc). I was hoping to see the entire video, but it seems to be non-existent on the web. It seems like CNBC must have it somewhere, but their website is a bit of a maze wrapped in an enigma.

 

 

[Liberty]

I haven't found the video of the whole segment either. You indeed have to fight their website to get to the content you want, which is probably a bad strategy for a content company...

[cubsfan]

Does anyone have the link to the full interview with the Three Ts? I have only seen the 3 minute excerpt available so far.

 

Cheers,

Paul

 

Here you go:

 

http://fm.cnbc.com/applications/cnbc.com/resources/editorialfiles/2014/03/03/2014-03-03%20Ask%20WarrenBuffett%20complete%20transcript.pdf

 

Thanks Liberty - I appreciate the transcript, super helpful. I also like watching the video (so much of communication is in the subtlety of body language, etc). I was hoping to see the entire video, but it seems to be non-existent on the web. It seems like CNBC must have it somewhere, but their website is a bit of a maze wrapped in an enigma.

 

They will release the entire interview eventually, after they make you watch all the commercials on each 3 minute clip.

[alpha231616967560]

They will release the entire interview eventually, after they make you watch all the commercials on each 3 minute clip.

 

Is that how they do it? Thanks for the insight. It makes sense as a revenue generating strategy in the short term.

 

Seems like they could do a better job of monetizing the content. 

[alwaysinvert]

Just thought of something.

 

When they manage all of BRK's money, won't the current compensation scheme skew Ted and Todd towards stocks versus buying out elephants? I'm thinking because the eventual market beating performance will likely (or at least has the chance to) drip faster into book value with stocks than with wholly-owned businesses? Yes I know, they have a high-water mark and delayed compensation but that doesn't seem quite enough to offset this effect if you consider the time-value of money to them personally.

 

Maybe this is not a huge problem, but it seems clear to me that this will affect their incentives.

[alwaysinvert]

Easiest way to offset that would be anchoring some of their compensation to growth in per-share earnings, I guess. But I have no idea how you would be able to get the mix exactly right, since that may tilt the incentives too much in the other direction if taken too far.

 

Edit: One could make a pretty neat model of how much BRK should go down in value on the day of Buffett's death/retirement. All that's needed is Buffett's average life expectancy on the day of his death (pretty simple), the difference in market-beating ability of Todd/Ted vs Buffett and the extra compensation they on average will take from shareholders during the time Buffett on average would have left. I'll leave the last two assumptions up to you :)

 

If you PM me, I can give you a bank account where you can donate to show your appreciation of this highly valuable idea.

[augustabound]

Just thought of something.

 

When they manage all of BRK's money, won't the current compensation scheme skew Ted and Todd towards stocks versus buying out elephants?

 

I think that depends on how he structures the new CEO's responsibilities.

[petey2720]

  I think Ted is number one on the list of successors.

 

I will repeat my prediction:  I think Ted will be the next CEO.

 

See the linked article on Berkshire's most recent acquisition.  Buffett sent Ted to Germany to negotiate.

 

http://www.bloomberg.com/news/articles/2015-02-23/buffett-tells-deputies-to-supervise-newest-berkshire-businesses

[innerscorecard]

In other news I think I've found the formula to gain friends online.  Go on the message board and bash the person it's named after....

 

I might have to turn in my value investor certification soon.  I just hope I don't run into any value investors in a dark alley after that.  I can't imagine being hit over the head with the 1968 Moodys manual...

 

You can start calling yourself a value investor again after you have finished building up the oddballstocks cult of personality, giving talks at Columbia Business School and being mentioned weekly on valuewalk.