Buffett On CIT, Goldman And A Few Other Topics

Courtesy of Fox Business Network, here are some links to a couple of interesting interviews with Warren Buffett (Fox has a glitch right now that prevents me from posting the actual video). http://video.foxbusiness.com/#/7289655/warren-buffett-on-cit/?category_id=1292d14d0e3afdcf0b31500afefb92724c08f046 and http://video.foxbusiness.com/#/7288557/warren-buffett-on-teaching-kids-finance/?category_id=1292d14d0e3afdcf0b31500afefb92724c08f046

Buffett holds forth on CIT and their prospects — basically they’re toast — his Goldman investments, the economy and a new economic educational program for children. It’s interesting stuff.

Here from Fox, are some excerpts from the interviews:

On issues with CIT:
“I’m not on the inside on it… The problem with CIT is that their raw material, which is money, costs them far, far more than their competitors.  One way or another, things have to get reconstituted there.”

“Maybe they should watch our show ‘Secret Millionaire’s Club.’  You can’t pay loan shark rates and compete with people who are getting their money on a government guaranteed basis for practically nothing.”

On plans to hold his Goldman Sachs warrants:
“We’re getting almost $1000 a minute on preferred stock investments, so I try not to answer the phone if I think Goldman’s calling.  We will hold the warrants… every instinct in my body tells me that we will want to hold those warrants until they’re very close to their expiration date.  The preferred pays us the dividend and the warrants are going to make us the money.”

On having a jobless recovery:
“If we have a real recovery jobs will follow-the key word there is follow.  It won’t be a simultaneous phenomenon.  I would not worry about an extended recovery that will be jobless, but initially it will look like it’s a jobless recovery.”

On how far along in the recession we are:
“I can tell you that the movie we are watching has a happy ending, I just don’t know how long the movie will be.”

On how he spends his money:
“I do not attempt to time the markets at all.  I don’t give a thought to timing markets.  I do price individual companies.”

It’s good stuff and well worth a quick listen.

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