Warren Buffett: I Didn't Pull The Trigger On Amazon | May 2, 2019 | Summary and Q&A

Summary

In this video, Warren Buffett discusses various topics including his recent deal with Occidental, the importance of oil prices in the deal, the tracking of private planes, his opinion on Tim Sloan and other Wall Street executives, Apple's earnings, his holdings in Berkshire, the Federal Reserve's stance on inflation, and the current economic landscape.

Questions & Answers

Q: How did the deal with Occidental come together?

The deal with Occidental came together when Warren Buffett received a call from Brian Moynihan, the CEO of Bank of America, who informed him about their involvement in financing the Occidental deal. He then scheduled a meeting with Occidental's CEO, Vicki Hollub, and by the end of the meeting, they had a deal in place for $10 billion.

Q: Did Warren Buffett make the deal based on his confidence in the oil industry or the Permian Basin?

Although oil prices are an important factor, Warren Buffett states that he is not particularly familiar with the Permian Basin. The deal was primarily based on the terms of the deal itself and its sensibility for both parties involved.

Q: Can private plane movements be tracked?

Private plane movements can be tracked using certain services, which can be a concern for individuals who want privacy in their business dealings. However, Warren Buffett mentions that if anyone wants to do business with him and maintain privacy, they can use a NetJets plane, which cannot be tracked.

Q: What is Warren Buffett's opinion of Tim Sloan and his resignation from Wells Fargo?

Warren Buffett expresses his support for Tim Sloan and states that he was behind him 100%. He believes Tim Sloan was an excellent banker, and his resignation was due to the circumstances in Washington. Warren Buffett also clarifies that he would have never asked for Sloan's resignation.

Q: Why does Warren Buffett believe a Wall Street executive should not be running Wells Fargo?

Warren Buffett explains that although there are capable individuals on Wall Street who could run Wells Fargo well, the political climate and the need for lawmakers to make statements during hearings would make it challenging for a Wall Street executive to succeed in that role. He believes that Wells Fargo does not need that kind of negativity in Washington.

Q: What is Warren Buffett's view on Apple's earnings?

Warren Buffett states that he does not have high expectations for quarterly earnings, even for a company like Apple. He was pleased with what Apple reported, but he emphasizes that he does not have specific expectations in mind. He reiterates his confidence in Apple, mentioning that Berkshire Hathaway owns over $50 billion in Apple stock.

Q: Has Warren Buffett been buying more Apple stock?

Warren Buffett mentions that he is not aware of any buying or selling done by the other portfolio managers in his office. He states that the 13F filing, which comes out in a couple of weeks, may reveal if there have been any changes in Berkshire Hathaway's holdings.

Q: What does Warren Buffett think about inflation and the Federal Reserve's stance on it?

Warren Buffett agrees with Jay Powell, the Chairman of the Federal Reserve, that inflation is transitory. He believes that low inflation rates cannot exist in the current fiscal, monetary, and political landscape. However, he acknowledges that he has been wrong on this in the past and that he may continue to be wrong in the future.

Q: What surprises Warren Buffett about the current economic situation?

Warren Buffett is surprised that despite a 5% budget deficit, low unemployment rates, low interest rates, and negative interest rates in many countries, the yield on a 10-year note remains at around 2.5%. He states that this situation cannot continue indefinitely and that there will likely be changes in the future.

Takeaways

In this video, Warren Buffett discusses his recent deal with Occidental, his opinion on Tim Sloan and other Wall Street executives, the Wall Street practice of tracking private plane movements, Apple's earnings, his holdings in Berkshire, the Federal Reserve's stance on inflation, and the current economic landscape. He emphasizes the importance of oil prices in his deal with Occidental and expresses his confidence in Apple. Buffett also highlights the challenges of running Wells Fargo in the current political climate. He agrees with the Federal Reserve's view on transitory inflation but expresses surprise at the current economic situation.