ibm, he owns about an 8.5% stake in the company. he did that at an average cost basis at just under $170 a share. rit new trading at $145 a share but buffet is standing by ibm. >> well, we feel fine or we wouldn't own it. we've never sold a share of b m. periodically we buy a little more, up to 10%. we've not been an aggressive pyre but we've been a buyer, we've never sold a share. we'd be more likely to buy more in the next 12 or 24 months than we would be to sell shares. but we we'll make that call as time goes along. >> i wonder what you think about american express, if you still have the same level of confidence in it. >> i do, but there's no question that the whole area of payments is subject to attack by all kinds of people. and they're very smart people. they're high-tech people. and they're trying to figure out faster, cheaper, better ways of handling payments and losing the costco account was a significant item. but ken schnall made the decision that under the economics proposed it didn't make sense. >> the commitment doesn

you know, he didn't want to talk about ibm what the strengths and weaknesses of ibm were. in the past at the very beginning of the meeting the first thing he says is what we won't talk about is what we're buying now. now it seems to be we don't want to talk about what we own and why we own it. charlie munger once said if you can't say what you own and why you own it, you're not an investor. so i thought it was kind of unsettling. >> are you implying, jeff, that it's age-related? i'm trying to read in between the lines of your comments. >> i'm not talking about -- i'm not trying to -- i'm not trying to diagnose it, i'm saying it was unsettling because it was a different guy than i've heard in the past, i think. >> you sold brk last year after precision kas parts you have said was madness. >> right. >> this time you did not attend the meeting for the first time in a decade although you did watch the webcast. any regrets? >> actually, no. i guess i avoided a lot of rain, which i've hid in the past at those meetings, i know how they can be. the best part of the meeting now is

that's why ibm is missing out. >> ibm, 54%, microsoft 92%. amazon, 442%. >> wow. >> amazing. >> making $3.6 billion in capital expenditures in q one, they bought ten companies. they are trying to accelerate this growth. it continues to be a long term play. >> what do you make of the effusive praise for bezos? >> he sounded jealous, like i wish i had a bigger position in amazon. i think he's exactly right about bezos as an operator, an executive, someone who is always a step ahead of the market. they are eating share frankly. all of e-commerce is flat. his retail business is actually growing. you know what's growing faster is aws. we talked about cloud a second ago. i'm wondering, this is sort of going to how he's thinking about it, if and when he spins off aws, it's the fastest growing unit within amazon, most profitable unit within amazon. if i'm an amazon investor i want just a piece of that. >> a few months ago, i sat down with andy jassey -- >> ceo. >> he still said they have absolutely no plans to spin it off because of the flexibility t

ibm, i actually like that one. here's why. we talked in the beginning of the show about whether or not you want to buy valeant. this is a turn-around that is happening. so i feel like i have a much better probability. not only do they have watson, but i was in a bit coin conference, but they're into bit coin block change. they have two growth drivers. plus i get a dividend. i got it at a low price. yeah, i buy it. >> i tell you what, the gm story, we talked about ford and gm, and companies that are trading record margins, record cash flows, top of the cycle in terms of sale, yet they probably haven't been cheaper with the exception of -- actually, they were cheaper, but almost getting out of bankruptcy. it's a place where this is a 5% dividend yield. a company i think there's a lot of perception that these guys will not survive a technological kind of disruption factor in the industry. meanwhile, they've made more investment than almost anyone other than tesla. gm to me is one you ride through here. there's so much negativity

david: the deviled with ibm for a while. ellen: he finally did invest in ibm. mostly he stayed away from tech. this looks like it's an exception. what we say is it is a really. if you look at yahoo! in certain ways, it's really a media company. carol: and he likes media properties. david: and he is the savior of some newspapers not long ago. stan gilbert. a lot of bids for this company. anybody gaming out how likely he is to go get it? ellen: he is against verizon so you don't know. buffett is a next project getting in there and figure out ways where he can profit because of the size of the d can muster. he has a lot of money to put the work. david: cover story this week, so much about the price of pharmaceuticals. you look at charities that help people pay for co-pays and how a lot of pharmaceuticals are working with them. ellen: drug prices having going up for a while. there are charities that been developed that can help people who can't swing the cost of these rising drug prices who use co-pays. what happened is that the charity pays the co-pay, and with a

that ibm investment has been one of berkshire's worst investments. buffett bought it at a high point for the stock, and since then, ibm has basically turned in quarter after quarter after quarter of revenue declines. the stock price, as you said, is down about 20% from the point buffett disclosed his investment. he has made one not very good investment. let's hope that todd and ted make a better deal with apple. emily: buffett has made many great investments and a few not great ones. the question is, is apple the next candor morgan or 21st century foxy? noah: it certainly seems like it is more in that range. you know, maybe it does well. the one thing we can say about ted and todd is they have similar long-term horizons like buffett does. they are going to be less interested in apple's next quarter results then they will be in where apple is a couple years from now. one theme i heard repeatedly from investors i spoke with today is that they are likely going to let some of these bets that apple has beyond self driving cars or other things they have in

we won a project away from ibm and found 66% more bugs than the ibm team for a fortune 500 financial services company. some have our team have the exact profile we're looking for to do software testing. and have the raw talent but also the perseverance, the ability to work with teams and we have managers that work with our teams who are veteran technologies that join our company to be part off a company that has purpose and emissions. so, we're able attract fantastic talent. >> in your testimony, you had mentioned what a great employee mike is and works hard and comes on time and everything else. but moste interestingly, it's hd a positive impact on other employees and made them better employees. and keeping ever abody employed and hiring more people. so, how has that been the case? are there stories or examples where the quality of mike has m improved the quality of the other employees? >> i have brought with me some stories that several have written. >> go ahead. >> they're all amazing. and this one is very interesting to me because it has the perspective of someone who didn't know

that didn't pan out though on the ibm investment. what is your take on what this means for investors in apple? >> first of all, it hasn't panned out yet for ibm. don't forget that berkshire -- nothing changed in terms of the time horizon. so i'm not surprised to see a pop in the price of apple today simply because of the buffet or berkshire effect. but i think they're buying apple for a very long term play. now i don't have apple in any of the portfolios i managed but i have a lot of ibm in my portfolios. again, it's a long term investment. >> thank you for joinging us. we appreciate it. >>> stocks are hitting session highs that hour. let's look at the dow 30 stocks right now. we were just talking about apple. it is in fact the biggest gainer on the dow jones industrial average. still it is practically at session highs right now if not at session highs. home depot ahead of earnings is also making some nice gains today on tail end of things, american express, travelers as well as disney. those are the biggest drags on the dow. much mo

he's looking for ten-year return on ibm. he's not looking for a quick trade. and if that is a different m.o. that's -- >> in terms of sentiment, we got to a place where the stock was trading with a 12 to 15 rsi indicator. total momentum. and i think a lot of people out there have been saying look at some point apple is in a place where i'll own the stock. i actually think despite a lack of innovation, the stock will continue to produce 60 to 70 billion in free cash flow. that is part of why the piling on as of last quarter, it gets to a place you can see there's some very very quality guys that are -- >> it seems like a buffett, even though this is not buffett's decision, it's a buffett decision anyway services. where is the only place apple really showed growth this last quarter? credit suisse was all over this. talking about services. and not only did services grow by double digits but they continue to grow year after year to become a multi-billion dollar business -- >> it hasn't worked out. >> i understand. but that was the thought process of ibm. it was a

emily: you do not see them -- apple and ibm as a competitor? meg: ibm, yes, in many cases. apple a little bit different. apple is more about the devices in the enterprise, and they would very much like to go into the enterprise, and we obviously need to defend. more on the hp inc. side, but we need to defend. let me give you the perfect example. as you migrate -- say you are a cio. as you migrate infrastructure into the next generation that will be required for you to be cheaper and faster and more nimble, the ability to write applications in a new environment, cloud dative and mobile, it is going to be important for you to have orchestration, monitoring software. everything has to be automated today. and so we have those kinds of opportunities in our software portfolio. so we play in quite specific areas of software that is a little different than, you know, erp systems, like an oracle or s.a.p. or salesforce. this is not really our market. emily: what about the cloud? what is the hp strategy when it comes to the public cloud? are you going to be a cloud, or sell to the cl

. >> we saw -- remember the day starbucks reported, microsoft, ibm, apple. what did it mean for the broader market? absolutely nothing. the s&p has looked past every single piece of potentially bad news and ratcheted forward. can the s&p trade lower tomorrow? perhaps. but this is not the reason to sell the broader market in my opinion. going back to disney, it comes down to this, do they deserve a premium multiple over cbs? i say yes. is 16 the right number? i don't know if it's the right number. >> i say yes, too. because of the studio. when we look at the studio and look at the success they've had, i think that's something they can hang their hat on. and i think that continues. with espn, we'll know on the conference call. it's important to look at the fact that this stock like ibm had a 15% run in the last three months to where it is today and now pulled back 6%. the names that have run into these earnings and skyrocketed in, they're the names that seem to be able to not hold, unless they beat in a big way which they obviously missed tonight. i'm long. ri

we all look to ibm because we're all curious about it. what's the board see and what is the plan there. it looks like hp wants to put all growth in one area. to your point, guy, do they want to use the balance sheet to be able to make some kind of an acquisition. there are plenty of acquisitions out there. who knows what direction she really wants to bring this thing. so i don't know anything specific right now. but i think it's an interesting thing. she's obviously focused on growth. and are they looking for security. where would she want to go, that would make sense to me. >> buyer of the new company or hpe? >> i would be buyer hpe. but i would want to trade for a bit. >> still ahead, the lucrative world of esports. what is three-time nba champion fox saying the space could be offering up the next big sports gold mine. find out where hoe's pe's putti money to work right now. >>> here's what else is coming up on fast. >> america, this man is getting closer to being your next president. >> my new game is trump, the game. >> the game where

it's all in the ibm cloud. if you combine that with the data your business already has- then things get interesting. so right now we're working with a retailer to blend social and inventory data to help predict demand. we can help a hotel chain match weather and local event data so they can adjust room prices from minute to minute. and another company we work with can apply analytics to sensor data to save millions in energy cost. today, every business runs on data. that's exactly why we built the ibm cloud. today, every business runs on data. steve, other than making i'm here atme move stuff,rade trader offices. what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. td ameritrade. >>> we're back on the halftime report. big week for earnings.

that's just my opinion. >> we talked a bit about ibm. there were shareholder questions that came in over the weekend about shares of ibm, particularly since they're trading at about $145 versus a cost basis just under $175. you made some comments you're not sure what to think about the ibm investment. >> i'm not sure it's going to come out. i like the fact they're doing it. and any kind of artificial intelligence is very much in. it may well work. i have no way of predicting. >> do you think warren does? >> no. >> you can take that to the bank. >> when you talk about artificial intelligence you talk about watson in particular. >> i don't think we're paying much for the opportunity. >> the opportunity to be in shares of ibm? >> i think that there's not much optimism in the current price of the shares. what is it you like about the artificial intelligence there? >> i like the idea of using art official intelligence because we're so short of the real thing. [ laughter ] >> bill, you've spent some time working on artificial intelligence and

we built our business on the ibm cloud. because that's what the ibm cloud is built for. >>> it's a big day for hard data. cpi starts and now industrial production. let's get to rick santelli. >> oh, man, this is a big number. finally, industrial production on its month over month change up 0.7 of 1%. we haven't seen a number anywhere near that in quite a while. looks to me like we could go all the way back to february or march depending on your rounding, and that's of course of 2014. keep in mind so far this year other than this number two out of three numbers were negative. last year 10 of 12 numbers were negative. here's the negative part of this number though, minus 0.6 last month, and two or three negative outside of this one moves to minus 0.9. capacity utilization done, it is 75.4, now, the utilization rate was expected to be 75, we're doing better. and unlike the last number we gained a tenth to 74.9 last month. 75.4, how does that stack up? well, 75.75 is where we started the year in january, so there's your comp. t

it's all in the ibm cloud. if you combine that with the data your business already has- then things get interesting. so right now we're working with a retailer to blend social and inventory data to help predict demand. we can help a hotel chain match weather and local event data so they can adjust room prices from minute to minute. and another company we work with can apply analytics to sensor data to save millions in energy cost. today, every business runs on data. that's exactly why we built the ibm cloud. >>> disappeared from radar this morning over the mediterranean. flighting at an altitude of 37,000 feet when it disappeared. the last reported position was 165 miles from the egyptian coastline. >>> let's get up to speed on the early market action. global market selloff was the reaction to the fed minutes which suggested june was more of a possibility than investors were betting. you saw that immediate reaction in the bond market. commodities and the dollar. stocks ended flat yesterday but they are losing g

from my days at ibm, we never seem to be running fast snap. that is always the case with an established enterprise. while you believe you are moving fast, you are not moving as fast as the start of who wants to eat your lunch. emily: how aggressive would you want to see the company be in terms of monetizing the cloud, which seems to be the future? john: it's not common to have something of that size and scale in triple digits, but it could grow it twice that rate. it's possible, given there seems to be a titanic shift going on in the industry were everyone is moving to the cloud. so why should we not capture more of that? if we invested more, how much more would our revenue growth be? that is a topic of discussion we are always going to have. are we moving fast enough to take advantage of this incredible opportunity that's ahead of us. emily: how do you see the cloud war playing out? >> if you look at history, what you see is that in a category typically there are two or three leaders in that category. theind ourselves in interesting and lofty

it's all in the ibm cloud. if you combine that with the data your business already has- then things get interesting. so right now we're working with a retailer to blend social and inventory data to help predict demand. we can help a hotel chain match weather and local event data so they can adjust room prices from minute to minute. and another company we work with can apply analytics to sensor data to save millions in energy cost. today, every business runs on data. that's exactly why we built the ibm cloud. todaythere's no oness no one surface...e. no one speed... no one way of driving on each and every road. but there is one car that can conquer them all. the mercedes-benz c-class. five driving modes let you customize the steering, shift points, and suspension to fit the mood you're in... and the road you're on. the 2016 c-class. lease the c300 for $359 a month at your local mercedes-benz dealer. >>> time for a mad dash as we head to the opening bell. a lot of people from u.s. food here, too. they have a big

we developed the world's fastest mainframe computer, faster than anything ibm had. at the next stop, we built the world's largest digital data storage system. then on to precision instruments where we built an even larger storage system, this time using lasers. i was the vice president in charge of software development. it was all very cutting edge and challenging and cool. i liked my work most of the time but i did not love it. i searched and i searched but i just could not find a software engineering job that i loved as much as i loved sailing. so i tried to create one. i put together a plan to start my own company. that way, i could completely control my work environment. i would hire the most talented programmers i knew and we would all work together. on the most interesting and challenging software projects. my goal was to create the perfect job for me, a job i truly loved. i never expected the company to grow beyond 50 people. maybe i really did lack ambition or vision. i don't know. it was a long time ago and i was very young. anyway, today oracle employees a

older companies like ibm, if you will, has done a terrific job of raising the issue and trying to do something about it. it ultimately comes down to the numbers, not the words. numbers do not necessarily support the words right now. i was quite shocked when i came to the valley in 1999 when everyone was so enamored with the fact that i was the highest-ranking african-american in the valley. i was like, what is the big deal? i now recognize it is a big deal. we need to do a better job of diversity and inclusion, and i think companies like microsoft, google are working hard at it, but they have to double down a triple down to make real progress. emily: that was john thompson, microsoft chairman and investor. coming up, the company that reimagined the vacuum cleaner is after your hairdryer. how this appliance has been reimagined. for more of our best interviews, check out our podcast. subscribe on itunes and sound cloud. coming up monday, we will talk to twitter cofounder and makers of hbo's silicon valley about the changing world of social media. ♪ emily: dyson, the pioneering britis

ibm is more important. ibm is going higher. i think it is a bbb. that's the conclusion of the lightning round! >> the lightning round is sponsored by td ameritrade. working 24/7 on mobile trader, rated #1 trading app on the app store. it lets you trade stocks, options, futures... even advanced orders. and it offers more charts than a lot of other competitors do on desktop. you work so late. i guess you don't see your family very much? i see them all the time. did you finish your derivatives pricing model, honey? td ameritrade. ♪ no, you're not ♪ yogonna watch it! ♪tch it! ♪ ♪ we can't let you download on the goooooo! ♪ ♪ you'll just have to miss it! ♪ yeah, you'll just have to miss it! ♪ ♪ we can't let you download... uh, no thanks. i have x1 from xfinity so... don't fall for directv. xfinity lets you download your shows from anywhere. i used to like that song. >>> remember, when you're out of slits, you're out of beer. it is exactly why toll brothers chairman bob toll turned out that old line when he was describing the lack of

that's what the ibm cloud is built for. >>> the big focus for markets, janet yellen's speech. we asked what you expected. joining us from minneapolis is jim cahn at the wealth enhancement view. >> if you look at the data, you have to believe that there is going to be a rate hike between now and tend of the year. right now market is pricing at 30% chance of a rate hike in june. we think that is probably a little higher and the market is discounting some positive news we've seen south out of the economy which may lead the fed to believe things are closer at hand. >> do you think we stall out here? >> it is possible. i do think there is going to be more volatility. the market is under pricing we believe this the probability of increase in interest rates. increase in interest rates reduces value of other assets like equities. so if we do have an increase in interest rates we do think we'll see potentially a sharp selloff in equity market because it is under price at this point. that said i think energy has room to go a little higher. we've gotten noise out of iran and continue to

they trade just like general motors or ibm. but instead of owning a piece of a company, you own a piece of a bond portfolio or a lot of these are ones that i picked say if it's trading at, you know, 7% less than the nav it's called, that means you're buying a $1,000 bond portfolio but only paying $930 and getting a yield of 10.29%. i don't know where else you can do that. >> mark, i don't know, we've been waiting for five years for this horrible super spike in yields where everybody rushes for the door at the same time. i guess it will never come at this point. but if anyone ever did the efts or closed in funds, you're selling it as a benefit like it's a stock, but it's only worth what someone is willing to pay for it on any given day. the same supply and demand as shares so that can be a negative if everybody is trying to get out at the same time. it could sell for 30% below mid-asset value at a time like that theoretically. >> even if with a decline in value, you're getting your money based upon what is in the bond fund. so,

from my days at ibm, we never seem to be moving fast enough. and i think that is the case when you are established. while you believe you are moving fast, in fact, you are not moving as fast as a startup. emily: how aggressive would you want to see the company being in monetizing the cloud, which seems to be the future? john: business as triple digit growth, and it is not common to have something that size still growing at triple digits. but could it grow twice that rate? it is possible. given that there seems to be a titanic, tectonic shift going on in the industry, where everyone is moving to the cloud, why shouldn't we capture more of that? should we invest more of that? if we invest more, how much more would revenue growth be? that's a possibility we will always have. re: moving fast enough to take advantage of the incredible front of us?n emily: how do you see the cloud wars playing out? history, whatat you see in a category is that there are two or three lite eaders in the category. we find ourselves in the lofty position of being of the

this is ibm's watson. it's listening and then writing an original song, tailored to a specific mood. >> we'll do a darker or moody, sad version. >> so it listens to this piece, and it deconstructs this piece of music, learns from it, and gets inspired by it. >> reporter: kpur scientist built the watson beat program here at ibm's austin, texas, campus. >> and then it adds on top of it the layer of emotion you want it to portray. >> to say something is happy or sad really depends on the person. >> to some degree, yes. we can only take it so far. >> reporter: this musician is teaching watson to convey emotion by training it to recognize musical patterns. happy or upbeat songs are more likely to be based on major chords. sad is typically expressed in a minor key. >> this is revolutionary, you think? >> for sure. this is the cutting edge of music. >> reporter: music has been moving into the digital age for decades. technology has created more efficient recording methods. and spawned an entire genre of computer

what's really reassuring that the gallup poll didn't address was how large companies like ibm and sun trust are forming millennial affinity groups to really have millennials that work for those companies be advisers to the, on how to design products and services to meet the needs of their customers. >> and are they getting what they want? because they're the largest group now. they outnumber the baby boomers. and i may go to my boss and say, i want flexibility, i want work at home, i want whatever. i'm probably, i'm guessing, less apt to get it than the millennial who will be spending more time working for that compan >> yeah. and millennials are forcing companies to adapt to a new workplace that is definitely more open and transparent and a work from anywhere place. so they're really forcing changes in the workplace because they're the dominant generation today as of 2015. >> is money or promotions as important to millennials as they were to other generations? >> right now when you look at the research, you find that millennials are more purpose-driven. it could be their age. i mean,

we won a project away from ibm and found 66% more bugs than the ibm team for a fortune 500 -- fortune 100 financial services company. the reason we're able to do that, three-quarters of our company have asperger's syndrome or similar autism spectrum profile and have the exact profile we're looking for to do software testing. and have the raw talent but also the perseverance, the ability to work with teams and we have managers that work with our teams who are veteran technologists that join our company to be part off a company that has purpose and emissions. so, we're able attract fantastic talent. >> in your testimony, you had mentioned what a great employee mike is and works hard and comes on time and everything else. but most interestingly, it's had a positive impact on other employees and made them better employees. and obviously a small business, that's important to being successful, and keeping everybody employed and hiring more people. so how has that been the case? are there stories or examples where the quality of mike has improved the quality of the other employees? the mike

so he went back to his office at ibm to do some work. >> there were several things about that story that raised some questions. >> like? >> like why would he wait 45 minutes for someone and not pick up your phone and give them a call and say, hey. >> what's up? >> what's up? did you forget? >> what seemed really strange was that mark porter had just admitted to going to the house the night of the murders with a story that just didn't ring true. why drive across town if he wasn't all that concerned about his friend missing dinner? >> so the drives a few miles across town to go knock on the door when his office is across the street, it doesn't appear gary is showing up. >> he puts himself at the house with a benign explanation? >> yes. >> inside the interview room the detective decided it was time for a break. >> give me a couple seconds, i'll go back there and see if there's anything else. can i get you anything? coke? water? >> trying to make sense of it all, include human being this bit of information, gary's brother had told police not long ago mark asked gary for a loan, put the reque

. >>> ibm has reportedly laid off more employees as part of its restructuring as it transitions to a predominantly cloud and analytics business. "wall street journal" says ibm declined to say how many jobs would be cut but overall estimates top 14,000. meanwhile the journal says the company could hire 14,000 workers. it has more than 20,000 open positions. shares of big blue down fractionally to 146.77. >>> and freeport mac may ran pulling plans for ipo of its oil and gas business. the company announced last year its intentions to spin off the unit but since then it has been hit hard by falling commodity prices and has cut its workforce. shares of the mining giant up more than 2.5% to 11.38. >>> finance company areas capital buying rival american capital for nearly $3.5 billion. activist investing group elliot management took a large stake in american capital back in the fall and urged the company to take some steps to explore strategic options, including a possible sale. shares of arias down slightly to 14.81. shares of american capital ended up to 15.72. >>> staples is reportedly l

meantime, ibm continues to hire for its cloud services and data analysis businesses. on friday the company said it had 20,000 open positions there and of course they still have more than 350,000 employees overall in an i.t. business that's challenged with often having too many people versus cloud resources. it's a struggle they continue to manage. >> certainly not alone in the struggle, either. >>> the head of the tsa warning of more long lines with memorial day just around the corner. phil lebeau is in chicago with the details. >> i know i will be at the airport this weekend reporting on how the tsa is handling what's expected to be a busy memorial day weekend and really, all summer because we will see record levels. we are going to see long lines. the good news is over the last couple days we have seen shorter tsa lines reported at a number of airports around the country. the tsa is adding staff and overtime ahead of the memorial day weekend and then going into the summertime. some critics have called for more private contractors to run security operations at differ

today it's their mobile app running on the ibm cloud. across every transaction, the hybrid cloud helps their data move quickly and securely. our clients are building out features and pushing updates faster, on five continents. with the ibm cloud, they can move at the speed of any start-up. with the ibm cloud, the call just came in. she's about to arrive. and with her, a flood of potential patients. a deluge of digital records. x-rays, mris. all on account...of penelope. but with the help of at&t, and a network that scales up and down on-demand, this hospital can be ready. giving them the agility to be flexible & reliable. because no one knows & like at&t. my m...about my toothpasteice. she eveand mouthwash.ice... but she's a dentist so...i kind of have to listen. she said "jen, go pro with crest pro-health advanced." advance to healthier gums... ...and stronger teeth from day one. using crest toothpaste and mouthwash makes my... ...whole mouth feel awesome. and my teeth are stronger too. crest-pro health advanced... ...is superior to col

if we buy ibm, i hope we can buy more cheaper. liz: look, you buy as a long-term investor, you have always said that. so you don't get nervous when something's down 15% over the past year, but what about these companies? these older, staid companies that become complacent and invite your friends over at 3g capital, and they enter and attack because the companies have gotten too complacent? >> well, sometimes complacency's a terrible disease whether you're a new company, old company, individual or whatever it may be. i've said that it's the abcs, you know? arrogance, bureaucracy and complacency, and you've got to fight that whether you're berkshire hathaway or u.s. steel, you name the company, but you have to fight it if you're facebook. success tends to breed what i call the abcs, and good managements fight it off. liz: well, ibm, do you think it has maximized its brand potential? >> i don't think they're complacent at ale. [laughter] i -- at all. i think that they're working very hard to adjust to differences in what people expec

written on. >> so tell us about ibm watson. you put your text in there, and then what happens? >> correct. you put your text in, and it gives you some personality insights. it tells you the feelg and emotions around what you're writing, and it's also the grade level. >> what grade level do you want to be? >> you want to be between three and nine. >> wow, i think actually i won't say the grade level for right now, but just the idea of speaking in normal language, it's how we should think about everything, right? if someone comes in and speaks in jargon, i think the world is different now. you're not seen as smarter as maybe perhaps you were many years ago. people are just thinking, i don't understand what you're saying. just speak in english. >> relatable. >> plmake it relatable. >> you can take a complex concept and make it simple, that's a skill now. >> great advice from both of you who have both built successful companies. congratulations on your careers as well. >> thank you. >> thank you. >>> this week's your biz selfie com

he finally did invest in ibm. mostly he stayed away from tech. this looks like it's an exception only we say it's not really because you can look at yahoo! in certain ways and it's really a media company. carol: and he likes media. >> he feels he understands media. david: he is teaming up with dan gilbert. a lot of bids for this company. how likely is it they will get this? >> they are up against verizon. warren buffett is an expert at getting in there and figuring out ways where he can profit because of the size of the capital he can muster. he has a lot of money to put to work. david: the cover story this week -- you look at charities and their co-pays and how pharmaceutical companies are working. >> drug prices have been going up for a while and there are charities that have been developed that will help people who cannot swing the cost of these drug prices with copilot -- co-pays. co-pay and pays the with a lot of these patients, if thee pays the rest drug companies give people the drugs, that's it. if they donate to these charities, they mor