Charlie Rose

winter  11/20/2009 09:07 AM Report

Buffet knows a good cabal when he sees one. What better proof than his buying into Goldman. Behind that goofy fit of laughter is the shrewdness of a Shylock.

sh200kr  06/27/2009 08:34 PM Report

Masonic hand-shake at the end?

LaineyN  04/03/2009 04:12 AM Report

You might not have ever heard of him, but you'd probably want Bryon Trott as an adviser for your finances. One of his clients is Warren Buffet, the investment wunderkind who has managed to turn a profit for 20 years in a row on the stock market. Apparently the cash advances he was getting from his current holdings weren't enough, as he is leaving his position at Goldman Sachs, to begin his own merchant banking fund, focusing on business investments. Sounds like <a rev="vote for" title="Byron Trott to Start Merchant-Banking Fund" href="http://personalmoneystore.com/moneyblog/2009/03/30/byron-trott-start-merchantbanking-fund/">Bry on Trott</a> would be quite the man in your corner.

MichaelAndrewThompson  12/25/2008 01:08 PM Report

Thisguy: The reason people look up to Warren Buffett is not because he has money. It is because of his honesty and HOW he made his money. You should probably read a little bit about the guy before you comment on him. I would also suggest that you read more about about one of his mentors Benjamin Graham. I say this not to ridicule but to help. The world would be a FAR better place if those in it would use a rational thought process in not only investing but also in their every day lives.... such as web posts. ;)

rodgerdp  11/18/2008 01:12 PM Report

I enjoy listening to Warren Buffett. He has clarity of thought and reminds me a little of an essay I read once by Einstein.

Thisguy  11/14/2008 05:43 AM Report

I laugh at some of the comments bellow. Everyone worships this guy like he is the smartest thing that ever happened. Do you all have your own brain or did you forget to turn it on? The guy who interviews Warren sounds a lot more intelligent than Warren. Just because he had huge capital to invest and just because he has money now that does not make him smart. You all just need a figure like him to look up to someone and feel good about yourself that you watched this video of so called guy who knows what he is talking about.

elytis  11/11/2008 07:34 PM Report

I couldn't believe my own eyes! Take for example what was on PBS Newshour; yesterday(11-10-08) I saw economist Marty Feldstein giving advice on what to do regarding the currant colossal financial mess! It was the "supply side" big time "free market" gurus like Martin Feldstein who got us into the huge mess in the first place! This is altogether madness! I have never seen such a thing after all the years of news watching. Jeffry Brown was asking Marty Feldstein to tell us the most important things for us to do in this colossal financial crisis!! For most people who were watching it was adding insult to the injury! I had to laugh out loud, not because it was funny? but in utter despair! It’s like asking George Bush or Dick Cheney tell us how to get us out of Iraq! How silly can you be? No wonder everything is collapsing all around us. America is plagued by poor reasoning and thinking. From industry, politics, finance, arts, literature, film and media and everywhere in America there is crisis of ideas. It’s not only our financial system that is bankrupt? but also our intellects! We suffer from the dysfunction called “Poor reasoning!” We are constantly given mediocre information by our media including PBS and NPR. America is in deeper crisis than the financial collapse! We are suffering from a crisis of ideas and that is showing through everywhere. We all know all too well Marty Feldstein’s “Free market” theories and assumptions are the obvious cause of this economic and financial calamity we are face today. We all know too well conservative politicians like Ronald Reagan and George Bush adopted those ill conceived ideas of Marty Feldstein, and they used to originate from post-war economics of late Martin Freedman. (Capitalism and Freedom) Since Reagan years, our economy, business, banking and finance has been under the influence of people like Marty Feldstein. Marty Feldstein has vigorously promoted “free market” style of economics. That meant “no government regulations” that would hinder any sort of economic or financial dealings. And we know under Alan Greenspan who was also a big disciple of our free market guru Martin Freedman, just like Marty Feldstein. We know the reason for economic collapse, the government looking the other way? encouraging the most risky, fraudulent and absurd financial deals, in the name of free enterprise. The end result was having the American taxpayer bailing out the entire financial industry, including banks! What's next, and look who is standing in for bailouts? The big three auto makers, film industry, airline industry, and the list go on and on? All those corrupt and incompetent American CEO’s are lining up for handouts, hoping to plunder America's national treasury! Remember Marty Feldstein also vigorously promoted “Privatizing Social Security!” You can read his 1998 book on the same subject, published by University Of Chicago Press. There are the people who have done so mach damage to our financial system, and then there are those CEO’s paying themselves with billions in salaries and bonuses? acting wild and crazy like drunks, indulgent to the extreme, irresponsible like drug addicts. They have been now given more than Trillion dollars worth of Tax payer money to party-on, give their families and friends the ride of their life, while we the working people have to work harder and harder and expecting less and less in order to have to pay for it! I think these people should be in jail, like their former compatriots from ENRON! I feel really sad for what’s happening to American taxpayer, we are helplessly watching while our national treasury is been robbed and plundered. And there’s no one seemed to be in charge!

Brian Cuffari  11/11/2008 12:38 AM Report

It's very interesting how Mr. Buffet almost slips up. When Mr. Rose asks him if he would be willing to serve his country, he almost slips and says he is doing that right now. It would be very interesting if the powers that be sent him out to calm the markets a bit. Undoubtedly, something as simple as Mr. Buffet claiming confidence in the markets would work to calm them. The desperation takes me aback.

The Truth  11/10/2008 10:51 AM Report

Warren Buffet is a bright guy...but he has also been very fortunate. He's never had to face discrimination and had good mentors along his well.

All True Blues  11/10/2008 05:27 AM Report

Great to hear an astute investor speak about his confidence in the current financial system. For people uninitiated in the world of finance, Mr. Buffett's statements send a powerful message of hope.

Steve Bruce  11/03/2008 05:20 PM Report

Warren Buffet is one of the great geniuses of our time. I sure would like to meet him! He speaks with superb knowledge in not only financial matters but also speaks eloquently regarding the plight of suffering people around the globe. He cares about people as evidenced from his 30 Billion Dollar donation. Again, I sure would like to meet him and discuss a plan to actually end starvation throughout earth within only five years. That is correct. I have a plan that will categorically end human starvation throughout earth within only five years. The plan simply needs to be implemented.

Steve bruce

e.weber  11/02/2008 03:27 PM Report

Mr. Buffet is on the money, and he has been over and over. Listen and learn.

aubra  10/31/2008 01:46 PM Report

treat.

Christopher Richard Wade Dettling  10/30/2008 11:34 AM Report

American capitalism rules the earth, and the rulers of capital are the bringers of progress into the world.

Stephen Plunkett  10/27/2008 11:37 PM Report

Mr Buffet speaks a vast amount of common sense - focus on the patient and get it healthy again. It is likely it will be journeying with other foreign athletes but that is no bad thing. The longer term implications are very interesting - but short term the immeidate action is to enable the economy start working again, and in doing so, grinf other world economies back into action. (A really good effort by Mr Rose, in an area where I sensed he felt a little uncomfortable at times.)

Uncle Ron  10/26/2008 11:55 AM Report

With all due respect to Mr. Buffett, on the subject of taxes he seems a little lost. Surely, he must know that the top 5% of income tax payers pay 60.14% of all income taxes, the top 10% pay 70.79% and the top 25% pay 86.27% (2006 data - latest available from IRS). The

bottom 50% pay 2.99% of the federal income tax.

He didn't mention the "Earned Income Tax Credit" which is a payment to low income people or federal, state and local(such as Section 8 housing assistance) welfare programs which are still fairly generous. Who pays all the estate, capital gains, dividend and real estate taxes - very few truly poor people. It is a simplicity but who creates jobs - it isn't poor people. Remember the famous federal "luxury tax" of some years ago that had to be rescinded because it put boat and plane builders/workers out of business and jobs? Like it or not, businesses and jobs are started by people with capital or the ability to borrow and pay it back. "Payroll taxes" are social security and medicare which are for people's "own accounts" for retirement - to mention these as some type of negative is mis-leading. I hate to say it but the truth is

there is a lot of truth in "trickle down economics." Of course, there are federal and state income tax deductions as well.

Mark  10/20/2008 10:00 PM Report

So isnt this a great time to go on a buying spree - a few select stocks one knows in one's industry and some funds such as energy (oil is cheap again) and India....

BSurge  10/20/2008 06:25 PM Report

He's got the performance history to back his opinions. He believes in this great countries economic system as I do. It's not a perfect system, but by far the Best in the World and with Warren preaching in favor of it is only going to help our Economy Improve.

Bud Labitan  10/20/2008 11:45 AM Report

Peter Cohan of Babson College recently wrote that "The problem we face now is fear of insolvency which leads to capital hoarding. Financial Institutions do not know whether it is safe to do business with other FIs because the others might be insolvent." He believes that "if they could be confident that they were solvent, then they would lend to each other because they would be missing out on profit opportunities. However, there is more going on now that remind me of a young patient with cancer.

Warren Buffett has described the recent American economy like an athlete who has collapsed of cardiac arrest and needs resuscitating with a defibrillator. But, what if the cause of this collapse is a tumor close to the economic heart? Tumors that originate in the heart are rare, but can be either benign or malignant. Because the heart is such an essential organ, even benign tumors can be life-threatening.

Myxoma, the most common benign tumor inside the cavities of the heart, accounts for about half of the tumors that originate in the heart. Fibromas, which also develop in the myocardium or the endocardium. Malignant tumors that originated elsewhere in the body and spread to the heart are more common than ones that originate in the heart. Malignant tumors, including carcinomas, sarcomas, leukemias and eticuloendotheliar tumors, can spread to any heart tissue. Lung and breast cancers often invade the heart.

Treatment of myxoma is usually done by surgical removal of the tumor. Treatment of malignant cardiac tumors usually involves radiation, chemotherapy and management of complications. So, the bottom line is this:

If these "toxic derivatives of unknown value" are the tumor around the heart of advanced economies, then they need to be effectively identified, shrunk, and safely surgically excised from the healthy portion of these economies. Until a comprehensive treatment plan is devised to include radiation, surgery, and rehabilitation, the current infusion of extra blood is just keeping this patient alive.

Bud Labitan

Author of "The Four Filters Invention of Warren Buffett and Charlie Munger. Two Friends Transformed Behavioral Finance." which is available from Amazon.com

Dislaimer: medical portions of my talk here are taken from: [www.csmc.edu\

Ashish  10/18/2008 09:07 AM Report

Hi,

Could anyone make me clear about how this ripple effect started ? Also, when govt is buying all these securities from the banks, how wud they make money when there is so much defaults? As Mr. Buffet stated that govt can earn a lot in long term if it is buying these securities at lower price like now ?

what half do u have?  10/18/2008 05:57 AM Report

scott, 'll bet people who know you wonder the same thing. I dont even know you and yet I do, too.

Maurice J. Mollan  10/17/2008 01:01 PM Report

Good person. Wants to help and people like him. Buy buy buy in the stock mkt.We need to help now. If MR. Buffet says it is now you all better listen.

Paula Marie  10/17/2008 02:21 AM Report

My wish is an indestructible bridge of confidence portrayed between Charlie and Warren's exchange which will traverse the level of awareness and confidence now so in need of the mind of the average American. As Warren said, "Have faith, not fear"...

Lisa Novak  10/16/2008 04:37 PM Report

Mr. Buffet's bullish enthusiasm for the US economy is like a fresh breeze at this time. One problem with his excitement that "US GDP is running at $46,000 per person" however, is that something in the range of 10-15% of that GDP is 'produced' by the financial services industry. Much of that has just vaporized. It remains to be seen what GDP will be in future as world appetites for US financial services products wanes in future.

StephenS  10/15/2008 10:25 AM Report

Although I tend to agree with much if not most of what Mr. Buffett said, his concept of "social proof" is morally and ethically untractable.

I grew up in the south, and even while I was in college it was normal practice to discriminate against Blacks, Catholics and Jews, not to mention Italians, Irishmen, Frenchmen, Germans, ... You get the idea. Now since practically every white person was doing this, and I am white, I should do it too, according to Mr. Buffett's "social proof" principle. Right? Wrong!

Fundamentally, the market follows the psychology of the mob, and mobs are almost never followers of logical or ethical behavior. As individuals, we are responsible for our actions. A rational person, when confronted with the opportunity to buy a house with a mortgage equal to 20 times their income, would do a budget, including a "what if" analysis concerning interest rates. It takes 4th grade math to do this. If one did this, one would inevitably conclude that the deal was a gigantic trap. While we can understand the greed and immorality of the real estate agents and bankers who pushed these products, our own collective behavior is equally responsible for the mess.

People like Buffett are like the vultures that perform the useful function of removing the carrion, thus helping to prevent the spread of the disease.

Diane S  10/14/2008 02:32 PM Report

This is wonderful. Thank you so much, Charlie, for making this interview available.

Rashmi  10/13/2008 10:50 PM Report

I love this man! Raise the taxes for the rich and increase capital gains tax! He really knows what its like to be poor and is ready to give up a small portion of his pie to make it better for the poorest. That's admirable.

mayo  10/13/2008 08:06 PM Report

I was wrong about someones idea of giving everyone one million dollars.it would be 305 trillions.----sorry=====. any way I am broke."I want one million dollars".

para carlos  10/13/2008 07:57 PM Report

Hey carlos you are right keep hollywood,keep wall streetand and keep etc.but the only way to heaven is jesus.jesus said give the message to the jews first.god bless all the jews and read the new testament at least once.

Steve  10/13/2008 07:48 PM Report

Re Marilyn:

If you were a cow (and I'm not convinced that you aren't, considering the clarity of your comment) , I'm not sure that Buffett would want to own you.

carlos  10/13/2008 04:04 PM Report

Ron, you are simply and ignorant judeophobic. There are 2 Billion Christians in the world, 1.3 Billion Muslims and only 12 Million Jews.

Being only 0.3% of the population, Jews dominate wallstreet, hollywood, etc. You are probably a frustrated poor guy struggling to pay his bills and you are just mad at the jewish people because of that. Read some books, get a life, and then post a comment.

Gio R  10/13/2008 04:44 AM Report

I love listening to these interviews, they are always very insightful. I also love reading the comments that are posted here. I only wish that we could ask questions as the interview is going on.

Dan  10/13/2008 04:06 AM Report

Charlie, why has my comment been deleted. Charlie and Warren aren't you able to bear my criticism? What a weak couple you seem to be.

Anyway the bailout plan will never work because it does not address the root of the problem. !! !WRITEDOWNS !!! BIG TIME. Who wants to be a shareholder in an insolvent company running the risk to being wiped out sooner rather than later by a restructuring. And Charlie you are sitting there giving the richest man in the world a platform to promote to most stupid economic plan in history. Listen to some of the economists who have proposed alternatives. 300 of them have signed a letter against the plan. Is this a stamp of approval for the plan?? Think about it!

ian b  10/12/2008 07:27 AM Report

While listening to Mr Buffet was instructive I found reading the comments even more interesting. The fact that so many people can listen to the logic of a person whose ability far exceeds their own and then ignore or ridicule him carries another argument implicit in Mr Buffets comments.

Reducing the impact of this crisis can not be a process of the people. It needs to be managed by world government financial institutions for the people.

The reality is that the average person needs to recognise they are financially stupid but smart enough to put the right people into bat.

Jason Romero  10/12/2008 03:45 AM Report

paper money was created to establish control...of everyday life. why must there be a value applied to necessary existence???

Reema Patel Sriganesh  10/11/2008 11:36 PM Report

Robert C - You have made sense, I think for the first time to me, of why the world banks ended up in this credit crisis. Obviously, the banks have to go back to the old model of lending based on a case by case understanding of the borrower. Instead of relying on some unregulated insurer guaranteeing a coverage on the default, and thereupon buying loan portfolios on a mass basis, they should do their own research of the borrower and lend where appropriate. Exposure to lending should be direct to reinculcate sense of responsibility with lending in FIs. Thanks for your help!

sock puppet  10/11/2008 09:18 PM Report

Robert C - one of the most astute, cogent anaysis of the Credit Default Swaps - on these boards anyway. Shamelessly I am going to copy it to more recent economic discussions. With attribution of course.

Robert C  10/11/2008 07:57 PM Report

WARREN BUFFET has called the $55 Trillion in outstanding credit default swaps (CDS) “financial weapons of mass destruction.” These agreements among banks and companies were intended to shield them from the risks created by mortgage-backed securities, corporate bond defaults and other financial disasters. The CDS instruments with Lehman Bros. as a counterparty became virtually worthless when Lehman filed bankruptcy. Same issue came up in the AIG nationalization. This threw the world banks into a lockdown where no bank would trust anyone to repay money loaned. They are waiting to see which of their other counterparties (banks, brokers, companies or insurers) defaults or files bankruptcy.

HERE’S THE CORRECT WAY TO HANDLE CDS SYSTEMIC RISK, from a former bankruptcy attorney as well as former General Counsel to a Mortgage-Backed Securities Issuer:

Markets will not resume rational behavior until the nuclear threat of credit default swaps has been rendered harmless. There are $55 Trillion of these private, non-regulated insurance agreements outstanding involving every major money center bank, investment house and major insurer worldwide.

There are two ways to take away counterparty risk. One is to guaranty their performance. The other is to render them unenforceable or of only limited enforceability.

Systemic confidence in world banks is so low that a government guaranty of counterparty obligations is totally worthless. Once everything has been guaranteed, nothing is guaranteed.

As a matter of public policy, the risk of enforcement of credit default swaps would be much more destructive to world economies than would be the risk of their unenforcement. These instruments were an unregulated, and unsanctioned, form of insurance. These instruments must be taken out of the equation in order to return the world banking system to the status quo ante.

The G7 meeting should result in a unified announcement that none of the currently outstanding credit default swaps will be enforceable in any of the G7 nations’ courts for at least five years as a matter of public policy. A G20 announcement could follow. A Derivatives Court of Claims could then be set up at the Hague to review such instruments, submitted by the parties and counterparties.

The Court of Claims could then act as a Court in equity to determine the putative obligations and cross-obligations of the parties, with a decision as to what percentage of the obligations should be enforceable, if any.

This would be, in effect, a bankruptcy court for an entire shadow insurance system, if you please.

Remove the CDS Sword of Damocles by declaration of unenforceability. Then, banks could begin lending to one another again without worthless guarantees from each other or from governments who are already on the hook for systemic risk.

V G Reflector  10/11/2008 02:38 PM Report

I find it heartening that a decent family man like Buffett so strongly supports Sen Obama. Buffet strikes me as a good & knowlegable man that truly wants to steer America in a positive direction, a direction that is in the best interests of the nations children, and their children's children. " http://uk.youtube.com/watch?v=jH2iufUU1f4 "

Jim Ault  10/11/2008 03:26 AM Report

Well, Dennis, according to your link (wiki.org)

"In 2003, this rate was reduced to 15%, and to 5% for individuals in the lowest two income tax brackets. These reduced tax rates were passed with a sunset provision and are effective through 2011; if they are not extended before that time, they will expire and revert to the rates in effect before 2003, which were generally 20%."

So Warren Buffet was correct as of this week - 15%.

Dennis  10/10/2008 09:26 PM Report

Mr. Buffet calls the credit crisis a economic Pearl Harbor.

I am wondering does he see another country playing the role of the Japanese in this scenario? Did one of the countries funding our debt addition shut off the taps; forcing the US to delever?

harry  10/10/2008 05:20 PM Report

love Buffett... clear, concise, and rational... @all you people who comment that the $700B bill was not a good idea... u made me angry enough to actually write a comment

i say to you all: borrow an economics book from the library and start on page 1... and get informed on credit markets and rewatch the video 100x until you understand (u idiots really make me sad--- sadly you are those who represent the dumbing down of America)

John Savage  10/10/2008 03:48 PM Report

Lovely, another political wind bag!

www.privacy-center.ru.tc

not harry  10/10/2008 03:46 PM Report

Poor Harry, a dumber than dirt sycophant who believes everything Buffett says is gospel and could only be for the betterment of all mankind. Guess we have to recite Buffett's catechisms for good measure. Harry, why don't you lead the choir?

tim amt  10/10/2008 03:06 PM Report

Regarding Warren AMT, not sure you know the tax code. I know I don't, but if you check wiki. I do believe you are wrong, follow the link http://en.wikipedia.org/wiki/Capital_gains_tax_in_the_United_States

Warren AMT  10/10/2008 01:55 PM Report

Warren Buufet does not pay 15% on long term Capital Gains -- he pays 28% because of AMT. The 15% number does not exist for the moderately well off (MUCH less than Barrack's $250,000) due to AMT. Warren aught to review his tax form better.

chris dorf  10/10/2008 10:54 AM Report

RESTITUTION and Financier Terrorism.

The first is the only act, of justice, that will take care of this problem. The second; authors have written about this coming terrorist activity on the part finaciers for near a decade now.

Get some truth on and take back the stolen goods.

The innocent are wiped out.

Norm  10/10/2008 02:14 AM Report

Thank you so much Charlie for getting one of the most revered, kindest, and respected investor in the world to speak publicly on PBS.

His words, stats, and levity speak true to me and give us perspective, insight, and hope.

The Five Pillars of Diverse Asset Allocation:

Cash,

Bonds,

Stocks,

Real Estate,

and Commodities.

Rene  10/09/2008 10:55 PM Report

Thank you for this great video!!

Maverick  10/09/2008 10:28 PM Report

Hey "Ron"- you are what we call an anti-Semitic, babbling idiot. I'm sorry that you are so angry, but you might want to try an argument that others would take seriously (as your babbling makes you look foolish).

Thanks Charlie for giving the hour to Mr Buffet. It comes at a pivotal time. He may not be right about some things, but he certainly is not wrong about everything.