Buffett interview from 2005

[KinAlberta]

I hadn't seen this interview before and it contains some interesting 'macro' views by Buffett

 

 

It's quite long but interesting. Just a small portion below so I'd suggest reading the whole interview.

 

'There are lots of loose nukes around the world'

 

 

"DOBBS: Consequences, and not happy consequences, I think it's fair to say. You are, as a businessman, an investor, in point of fact, looking to a declining dollar as an opportunity for the company that you run. How long a window do you see to invest in what are dim prospects for the American dollar?

 

BUFFETT: Well, I don't know timing. I mean, this is a terrifically strong country. We have a lot of assets to trade, and people will take our IOUs. Right now our net position versus the rest of the world is they own $3 trillion more of us than we own of them, and that number grows every day, and at some point economists talk about a soft landing. Maybe there will be a soft landing, but you know, who knows? And right now Berkshire Hathaway has a portion of its assets in foreign exchange contracts.

 

DOBBS: You also have a portion in cash.

 

BUFFETT: That's true.

 

DOBBS: Forty billion, because you feel right now that not only are prices overvalued in the equities market, even some of your own assets you consider overpriced - $40 billion, an immense amount of money. How concerned are you about this market, this economy? I couldn't have you here, Warren, without talking about the market.

 

BUFFETT: I just don't find things that are undervalued. We like to get a lot for our money if we're buying marketable securities. So, I'm hoping to put that money out. We are going to announce an acquisition, costs a little less than $1 billion, but I'd rather have it cost $5 or $10 billion, and then we'll get an opportunity to put the money either into marketable securities. We bought junk bonds three years ago. We spent $7 billion in a short period of time. We'd like to buy businesses. So, I'm not happy with $40 billion, but, one way or another I think we'll manage to invest it."...

 

http://www.cnn.com/2005/US/05/10/buffett/