Warren Buffett: Buying Stocks and Will Buy More

By on May 7, 2012

Warren Buffett - Berkshire HathawayBerkshire Hathaway held its much followed annual meeting over the weekend.  Becky Quick, Andrew Ross Sorkin and Joe Kernen interviewed Berkshire chairman and most famous investor in the world, Warren Buffett, this morning.

Buffett said he was buying stocks (two U. S. stocks he wouldn’t name, but that they already own).

Becky Quick asked Buffett to comment on the challenges facing Europe. Buffett said it would be very difficult for Europeans to resolve their problems. Buffett indicated the European elections highlight the problem of getting 17 countries to agree. Buffett observed it was difficult to get people to vote for pain. He mentioned if you have a common monetary unit you have to have somewhat common fiscal policies.

Buffett said Europe would go through a messy process with a lot more episodes, but would get through it. Buffett was confident the Europeans would solve their problems, but not without a lot of pain. Buffett observed that Europe had a huge market, lots of skills and wonderful companies.

Buffett said he bought a Dutch company (Meyn Holding) outright just last week. Buffett indicated the problems in Europe wouldn’t prevent him from buying good companies there.

Buffett elaborated on the strength of U. S. banking institutions whose problems were dealt with decisively three years ago. He added that European banks were having difficulty raising capital.

Buffett stated it was a terrible idea to base your buying decision on individual stocks with regards to the current headlines.

Buffett was impressed with the way the economy (except for housing) had recovered from the 2008 collapse. He mentioned that most subsidiaries of Berkshire were recording record results, although things weren’t “galloping.”

The idea of investing in gold was discussed. Charlie Munger, Buffett’s sidekick, made a comment over the weekend that civilized people don’t invest in gold. This riled up the “gold bugs.” Buffett indicated gold was something an investor could hold on to and admire and it might increase in value, but it was not a productive asset. Buffett said gold investors want others to be afraid and “run to a cave” with their gold. He added they were right to be afraid because of central banks printing of money causing currencies to depreciate over time.

The interview was conducted over the course of three hours. The first segment is included below (subsequent videos will be added as they become available):

Video: Buffett Comments on Gold

Video: Cola Cola Easier to Figure Out Than Google or Facebook

Video: No Second Thoughts About Walmart

Video: Buffett Comments on “Fiscal Cliff”

Video: Companies Buying Back Stock is Good

Video: How Will GEICO Deal With Google’s Driverless Cars?

Video: Don’t Hedge Currencies

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