Warren Buffett is Confident and Buying Stocks Almost Every Day
Investing legend Warren Buffett was interviewed by Matt Lauer of the Today Show and shared his opinion on the economy. Buffett said consumers were feeling reasonably confident and noted the economy had been coming back for a few years; along with residential housing now making a comeback.
Buffett said he was confident over the decades to come and is buying stocks almost every day.
Lauer brought up a quote from David Cote, CEO of Honeywell, made on “Meet the Press” Sunday:
“Right now I’m not that bullish at all. And, in fact, I’d say there’s a great uncertainty that’s just hanging over the entire economy because we’re not confident that our guys can govern anymore…there’s a lot of money on the sidelines that people are willing to invest. But people like me just aren’t hiring now because we’re not confident they can to it.”
Buffett said Berkshire-Hathaway is investing $9 billion in plant and equipment in 2012, which is a record. He added it was 10 percent more than they invested last year.
Buffett stated there is always uncertainty and quipped that December 6, 1941 was uncertain, but we just didn’t know it then.
The interview continued (available below) with Buffett commenting on the public perception of Congress, his opinion that there should be a minimum tax rate on the wealthy and what tax brackets that would entail, the odds that his proposal could be passed in legislation, and why raising taxes would not have a “chilling effect” on hiring in the U. S., but rather increase the morale of the lower classes.
For those interested in a more in-depth interview of Buffett, he and Carol Loomis were interviewed for nearly an hour by Charlie Rose this week [link].
As reported back in August, Buffett expressed his optimism in a housing resurgence by making a bid on Residential Capital’s loan portfolio in a bankruptcy court auction [link].