Skip to main content

tv   Countdown to the Closing Bell With Liz Claman  FOX Business  May 2, 2016 3:00pm-4:01pm EDT

3:00 pm
kicking it off at 6 p.m. eastern with neil cavuto and lou bobs, 7 p.m., is going -- lou dobbs is going to bring you the results. you don't want to miss it. let's head out to omaha. liz claman, take it away. liz: i sure will, trish, thank you. donald trump looking for the knockout punch on the campaign trail in indiana today just one day ahead of that crucial primary vote. billionaire businessman says it's over for his rivals if he wins tomorrow in the hoosier state, and there is some new evidence that that may just happen. trump up by 125 points in the -- 15 points in the latest "wall street journal" poll. in the democratic race, hillary clinton outraising senator bernie sanders in april, but the vermont senator says hillary will feel the bern all the way to the convention. on wall street the markets not sticking with that old adage of sell in may and go away. the dow jones industrials up 11 points. we are -- 111 points. we are talking all of it,
3:01 pm
stocks, politics, your money and more with the man called the biggest rock star in the business world. look at the international press corps trying to get to billionaire warren buffett this weekend at his annual berkshire hathaway shareholder meeting. "countdown" was right in the thick of it. do you ever get a little anxious when you're making a purchase like burlington northern? that's a lot of money. >> i get nervous when i'm not making an acquisition. [laughter] no. no, i get excited. okay, let's keep moving here. ♪ ♪ liz: the man known as the most successful investor on the planet with us for the entire hour. here he is live on changing the world of investing in the stock market, the economy, the contentious presidential race -- you ready for all of that? -- and the future of this nation. let's start the "countdown." ♪ ♪
3:02 pm
liz: live from warren buffett's headquarters in omaha, nebraska, on this first trading day of may. by the way, the bulls are charging toward dow 18,000, the market is give or take 100 points away. no dice when it comes to the halliburton/baker hughes deal. regulatory opposition from both the u.s. and europe means the $28 billion merger is no more. you can see shares of halliburton moving higher by 2%, baker hughes dropping by about the same amount. looks when it comes to the man of the hour, it never mattered where stocks or the dow were heading, warren buffett was always charging amedicines he started his -- ahead since he started his company back in 1965. joining me now for the entire hour live, warren buffett, the man considered to be the best investor on the planet, chairman and ceo of berkshire hathaway, third richest man in the world. what else can i say?
3:03 pm
you guys just got out of your board meeting for berkshire. how did it go? >> they reelected me, so it went well. [laughter] liz: you got your job. >> yeah, exactly. as soon as they do that, i leave the room. liz: you're done. >> exactly. liz: it has been a long weekend, so we're thrilled you're here in the closing hour because people are on edge about their money and their stockings. i have to tell you just about the weekend, looking at the fact it's not just 40,000 who come to omaha anymore. you live streamed it on yahoo!. how did that go? i look at that and think either you are certainly a generous man, opening this up to the world, or you've got a huge ego. which is it? [laughter] >> both probably. yeah. yahoo! did a great job. and as far as i know, there was no hitch at all. i haven't seen any of it, i've been busy doing other things. but we'll do it again. they had 40 people out here, and i've already been getting e-mails from people who said
3:04 pm
thanks for doing it. liz: well, i'm wondering what the numbers are. do you think -- >> i don't know the numbers yet. i'll know the numbers at some point and get 'em by country and everything. liz: well, isn't that amazing. you don't see even a general electric or a jpmorgan opening their shareholder meeting to something like that. but, look, we've been showing these pictures of the massive media crush. i think i lost an arm -- >> well, you're lucky. [laughter] liz: it's fairly aggressive in there as people try and get to you. you're charging ahead. but a lot of people in that crowd, the international media, were very interested in hearing your thoughts on politics. in the last hour, bernie sanders was speaking, coming up at 4 p.m. eastern donald trump has some event in indiana. we're monitoring these very, very closely, but those were the two who were supposed to be the outliers, the long-shot candidates. are you surprised as a hillary clinton supporter that they're still hanging in there? >> yeah. hillary's going to get the nomination, and it looks to me like trump's going to get the nomination too.
3:05 pm
bernie sanders did start at 3% or something like that and attracted millions and millions of particularly young people. i give him credit for it. liz: what do you think it is about him? look, he's said that he really wants to help people pay for education. minimum wage, he seems to be driving that conversation. you've got more than 90 businesses under this umbrella at berkshire hathaway, and among them some of them do pay minimum wage depending on the state, maybe dairy queen, for example. there is this push to go to $15 an hour in many states. will it hurt your numbers out of, say, dairy queen if it does go to $15 an hour? >> dairy queen, it's all franchised. so those people are not employees of ours, but they are employees of people that are our franchisees, and i personally think the earned income tax credit will do a lot more in terms of people who really aren't earning enough to have a decent living.
3:06 pm
and the problem with people in many jobs these days is that their market rate really on 40-hour weeks, they can't support a family. and what they need is not necessarily a higher wage, but they need a higher income. and the earned income tax credit, in my view, is the best way to attack that problem without raising wages to the point where people lose their jobs. and we have, we're spending $60 billion a year in this country on the earned income tax credit now, and i think we could use a lot more and better direct it and get rid of some of the fraud, that's the best answer. liz: all of the candidates have floated tax plan, and all of them when they are scored independently add to the deficit. >> of course. liz: they don't help the deficit. >> no. liz: what would you say is the biggest economic change that the next president should do, must do to close the deficit? >> yeah. well, i don't regard a deficit of 3% or so of gdp as threatening to our economy.
3:07 pm
it's when the debt increases significantly and consistently as a percentage of gdp. but we can run a deficit. not enough, not an ever-increasing deficit, but we can run a deficit and have a wonderful economy. of course, we've been doing that since world war ii. liz: now you sound like dick cheney, it just doesn't matter. >> modern deficits don't matter. the truth is the earning power of the company goes up year after year. berkshire 50 years ago, $3 or $4 million would have been a huge amount of debt. now whatever it might be, 30, 40 billion, it's very easily serviceable. the richer the country, the more debt you can take. liz: ted cruz, for example, brings up the flat tax. does that, in your mind, work? >> it's terrible. liz: why? >> because my cleaning lady is going to be paying the same rate that i pay. i don't think that makes sense in america. i've been very, very fortunate
3:08 pm
in this country, and her talents in a market system -- it doesn't mean i'm a superior human being. i think a graduated income tax makes nothing but sense. liz: right now ted cruz and bernie sanders are speaking at different events, and indiana is the next primary. that's tomorrow. in fact, i think we have jeff flock who, our reporter, has been on the ground listening. you're in south bend, jeff. you've been listening to this conversation with me and warren, what do you think, what are you hearing on the ground that reflects anything about that? >> reporter: well, it's funny, here's a former ceo of a company in indiana, you said when warren buffett said deficits don't matter, you say? >> well, the more money that's in the hands of the consumer drives consumption and drives the economy. so if we're living on a deficit, how are we helping to stimulate global growth and advancement of our economy? >> reporter: a lot of people many this line say the reason
3:09 pm
they are -- in this line say the reason they are trump supporters are because of his business acumen and the feeling that you've got, finally, a businessman who's going to be in charge of the economy. that's a what drives a lot of these people to support mr. trump. liz: yeah. what do you think about that, warren? jeff was just talking to them, and i know you heard. >> yep. liz: and people say, well, we need a businessman who's created jobs unlike, for example, perhaps some of the candidates who don't sign checks. [laughter] they spend the money that comes from that. >> well, that can be the case, but i can think of a number of businessmen that would make terrible presidents, and i can think of a number of non-business people who would make great presidents. i don't think that should be the cry tier that. liz: hope springs eternal, and anybody who's showing up to a lot of these rallies, they want to believe that they could maybe be the next you. could you, do you think, in this business climate that we have -- some say it's unfriendly right
3:10 pm
now -- could you recreate what you've created with berkshire hathaway today? >> oh, yeah. business is doing terrifically in this country. businesses never accounted for a greater share in terms of gdp, profits are a record. no, business is doing wonderfully. the dow jones is at roughly an all-time high. you don't have to worry about business, you have to worry about the people whose talents don't fit in well with a market economy. they're wonderful citizens, they bring up their kids fine, and they barely can make a living that keeps them going. those are the people i worry about. liz: warren buffett, stay right here. and, by the way, you've got to keep it here on fox business for all your indiana coverage, primary coverage. neil cavuto, lou dobbs, stuart, the rest of the all-stars get things started tomorrow, 6 p.m. eastern. 50 minutes before the closing bell rings, dow jones industrials up 119 points on
3:11 pm
this first trading day in may, but do the world's most successful investors think about that old adage sell in may and go away? we will ask warren buffett about that. why you're still holding stocks that many people call dogs, warren, people want to know about that. plus, if and when uber goes public, would warren buffett buy shares? the fed, negative rates and is the u.s. economy going in the right direction? more "countdown" coming your way. we're live in omaha, nebraska. >> at your age you will see many recessions and an occasional panic and make the most of them. laugh. liz: great. i assume you mean buy stocks when they're cheap. >> absolutely. why not why them when -- buy them when they're on sale?
3:12 pm
innovative sonicare technology with up to 27% more brush movements versus oral b. get healthier gums in 2 weeks guaranteed. innovation and you. philips sonicare. save when you buy the most loved rechargeable toothbrush brand in america. i use what's already inside me to reach my goals. so i liked when my doctor told me i may reach my blood sugar and a1c goals by activating what's within me. with once-weekly trulicity. trulicity is not insulin. it helps activate my body to do what it's supposed to do release its own insulin. trulicity responds when my blood sugar rises. i take it once a week, and it works 24/7. it comes in an easy-to-use pen and i may even lose a little weight. trulicity is a once-weekly injectable prescription medicine
3:13 pm
to improve blood sugar in adults with type 2 diabetes. it should be used along with diet and exercise. trulicity is not recommended as the first medicine to treat diabetes and should not be used by people with severe stomach or intestinal problems, or people with type i diabetes or diabetic ketoacidosis. trulicity is not insulin and has not been studied with long-acting insulin. do not take trulicity if you or anyone in your family has had medullary thyroid cancer or multiple endocrine neoplasia syndrome type 2 or if you are allergic to trulicity or its ingredients. stop using trulicity and call your doctor right away if you have symptoms of an allergic reaction, such as itching, rash, or difficulty breathing; if you have signs of pancreatitis such as severe stomach pain that will not go away and may move to your back, with or without vomiting; or if you have symptoms of thyroid cancer, which may include a lump or swelling in your neck, hoarseness, trouble swallowing, or shortness of breath. medicines like trulicity may cause stomach problems, which could be severe. tell your doctor about all your medical conditions and any medicines you take. taking trulicity with a sulfonylurea or insulin may increase your risk for low blood sugar.
3:14 pm
common side effects include nausea, diarrhea, vomiting, decreased appetite, and indigestion. some side effects can lead to dehydration, which may cause kidney failure. with trulicity, i click to activate what's within me. if you want help improving your a1c and blood sugar numbers with a non-insulin option, ask your doctor about once-weekly trulicity. and click to activate your within.
3:15 pm
♪ ♪ >> our interest in american express goes up every year. they bought in 6% of the company last year, and in the first quarter they bought in at a rate that was more than 6%. our interest in a wonderful business goes up 6% a year without laying out a dime, i love it. liz: warren buffett's the largest shareholder of american express, 15% stake in the company, warren? >> it goes up as i repurchase shares, a little more.
3:16 pm
liz: okay, let's talk about that. ibm, which you love to take a big position in, lately you've taken a big position, what does it stand out now? >> i think it's about 8% of the company. liz: that's down 15% over the past year. you know, the question is have you overstayed your welcome in some of these stocks that perhaps some of your followers and shareholders feel time to get out of? >> if we like a business and it goes down, we just buy more, and we hope the company buys it in, and our interest goes up. i would just as soon -- well, i would prefer a stock i'm buying to go down. liz: that's crazy, warren. explain why. >> well, it's because if i'm going to eat hamburgers for the rest of my life, i'd rather have them go down in price tomorrow and the next day. if i'm buying a business and i can buy it as a cheaper price, we just bought precision cash parts, i wish we could have bought it cheaper. if we buy ibm, i hope we can buy
3:17 pm
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
3:18 pm
complacent at ale. [laughter] i -- at all. i think that they're working very hard to adjust to differences in what people expect in i.t. departments. and i think there's a lot of competition. i think they're a very good company, and we'll see how it all turns out. liz we know you love coca-cola. we know you drink coca-cola. >> quite a bit. liz: there was a shareholder question that really caught people's eye, ear, attention during the shareholder meeting and it was, in essence, why are you investing in something that rots your inside? >> well, it has sugar in it. i mean, and sugar is in thousands of products. i happen -- they had three candy bars on the table there, and each one of those candy bars had over 200 calories, mostly sugar, and that's more, far more than in the 12-ounce can of coca-cola. if you don't like to eat sugar or, give it up, but i like to eat sugar, and i'm 85. aye been eating it all my life,
3:19 pm
and i'm going to keep eating it. [laughter] if you gave me the choice of living to 100 eating nothing but broccoli and brussel sprouts, which one would i take? [laughter] liz: you must not have loved mayor bloomberg's effort to get rid of the heavy sugar drinks. do you feel the government should get involved in things like that? >> well, i think if the government decides you shouldn't drink colas, for example, it means they should get rid of all sugar, and the average human in the united states, i think, takes something over 125 pounds dry weight of sugar a year, so that's a lot of products you're going to get rid of. liz: yeah. they shouldn't just should soda -- >> well, the the sugar isn't any different in soda. liz: the fed has given the markets a sugar high. i know that's a real twist with here -- >> yeah, right. [laughter] liz: i'm making a segway. >> that's okay, you're doing fine. [laughter] but the federal reserves has kept us at such low rates. a year ago you said if it were me, i would not tighten rates.
3:20 pm
the fed didn't listen to you, warren, and now there's word and a feeling that they will continue to tighten rates maybe one or two times the rest of the year. can the u.s. economy handle that? >> oh, we can handle it, but i actually think they tightened less than was expected a year ago. liz: yes, that's true. >> and i think in part believe been restripped by what's going on -- restrained by what's going on in europe. i think it has been -- liz: i'll ask the same question i asked a year ago, would you, if you were running the fed today, tighten rates in june? >> i probably wouldn't. but that is not important to our investments. i mean, that -- that does not enter in 1% to any decision we make on buying a business. so that's not a matter of concern to me. you know, what is a matter of concern where a business is going to be a year, five years or ten years from now. and five years from now we won't remember when the rate hikes or decreases took place or anything of the sort. we'll look at the business and whether it's earning a lot more money.
3:21 pm
liz: boy, he has a long-term outlook, folks. more with warren buffett in just a moment. we're 40 minutes away from the closing bell ringing. dow is up 110. when we come back, buffett bff bill gates joining the conversation. the two richest americans discuss the high-tech future of cars. would he get in a driverless vehiclesome would bill? -- vehicle? would bill? and to get to uber, find out in warren buffett would own a share of uber, but not before bill gates was slightly humiliated in the famed newspaper toss. "countdown" coming right back. watch this. >> oh! >> get a picture of that. ♪ muck so what else is new? how's your mother?
3:22 pm
3:23 pm
umm..she's doing good. she needs more care though. she wants to stay in her house. i don't know even where to start with that. first, let's take a look at your financial plan and see what we can do. ok, so we've got... we'll listen. we'll talk. we'll plan. baird.
3:24 pm
3:25 pm
liz: closing bell is 35 minutes away. hey, it may be the first day of
3:26 pm
may, but it looks like investors are doing anything but going away. the dow is up 114 points. all right, warren buffett is back with us, and joining the conversation now, berkshire board member and the richest man in the world, that too, microsoft co-founder bill gates. good to see you both. >> thank you. liz: thanks, bill, for joining us here. what was up with that newspaper toss? you whiffed it. >> i, i had one throw that wasn't too good, it's true. [laughter] the highlight reel excludes that toss. [laughter] >> but, bill, you were a newspaper carrier. >> i was, just like you. [laughter] you remembered how to fold them even better than i had -- >> that's true. >> very tight, that's impressive. liz: look, the technology world is your area and your realm. technology came up, i thought, in an interesting way this weekend at the meeting, warren, and that was through your insurance business and geico specifically where you talked about how geico numbers were hurt last year because you saw a sudden flurry and an increase in the severity and frequency of accidents. am i reading this correctly,
3:27 pm
texting while driving, talking on the phone while driving is starting to really take hold and cause more accidents? >> it has to be. you know, it's a little harder to get precise statistics on that. drunken driving we know causes between 9-10,000 deathses, and texting, you know, you're not always going to get the accurate numbers on, but for the first time in a long, long, long time the deaths per 100 million vehicle miles went up. and it's come down dramatically over the years. and it's got to be texting, yeah. liz: well, that dovetails to driverless cars. you're at the forefront of technology. have you been in a driverless car, bill? would you go in one? have you been in one? >> oh, sure. the technology's gotten very good. you always have to work on edge cases like where there's lots of snow or where you have a construction site that you're having to navigate around unusual things.
3:28 pm
but the technology won't be the limiting factor. you'll have to figure out the liability, and we'll have a few cities that'll jump in in the next five to ten years, and based on how that goes, it could catch on. but we're still talking about decades before you get to big numbers. liz: were you ever considering going in a driverless car? have you been in one? >> well, i've been in a lot of cars that are driverless with the drivers that i go with. [laughter] it'll be a while. they'll come. you know, there's no question in my mind about that. and they'll come when they're safer. liz: how would you insure a driverless car? would you insure the code writer? the software writer? >> that's a real question in terms -- what you hope, of course, is that the car is far, far, far safer so there are fewer accidents, but when there are accidents, whether you sue the sort ware manufacturer or -- [laughter] who exactly are you suing?
3:29 pm
liz: that doesn't sit well with bill. >> that'll all get sorted out. they'll only become prevalent if they are a lot safe e and that day will come. -- safer, and that day will come. it'll turn the auto insurance industry, in all likelihood, upside down at some point, but i think that point is a long, long way off. liz: the last time, bill, you and i spoke -- i believe it was in davos -- i asked you what your most interesting unicorn start-up in your mind was and you said you thought air bnb was. is there a runner-up in the next four months that i've seen you? >> you know, i don't know them all to compare them. the software world continues to have a lot of exciting stuff. the big companies doing great work, the unicorns, the small companies, you know, we're just scratching the surface whether you think about data visualization or virtual reality or artificial intelligence, software is where the action is.
3:30 pm
liz: uber was huge here this weekend. warren, we used it a couple of times, came in two seconds. everybody with was helpful. it really worked. >> i find, that always impresses me when somebody takes something like the car or the driver which is -- and then figures out a way to make it way more productive and change human lives for the better. i tip my hat to people that do that. fred smith did it at federal express, you know, jeff bezos has done it at amazon, they've done it at uber. you know, they didn't invent a new car or anything, they just thought about it a little different way, and i, i'm not a big user of anything -- [laughter] but, i mean, i have friend after friend after friend, you know, that -- whose lives they feel are better because of uber. liz: if uber went public, would you buy the stock? >> no. liz: why not?
3:31 pm
>> well, it would go public at a price that would be, it'd be very hard for me to decide the discounted value of all the future cash that was going to be produced was going to be attractive this terms of the -- in terms of the price. it might well be, but we've, i would say in the last 40 years anyway, i don't think we've ever bought a public offering. liz: okay. we're going to talk more about all of those issues. by the way, be sure to stay tuned to because in today's claman confidential, i'm talking about the future of berkshire hath with the two richest men in america, and you'll find out so much more this weekend online. i interviewed the ceo of dairy queen. oh, my god. look, those blizzards are so thick, you can hold them over people's heads, the new york cheesecake blizzard, that's the small business furniture rentals, and then the brooks ceo on running. and, by the way, taking on nike. no, it didn't melt and drop on john gainer's head.
3:32 pm
find it all at i have posted so many great pictures over the entire weekend, check out our facebook page as well. we're almost at 20,000 likes, 46,000 twitter followers. and by the way, @warrenbuffett. he's got a lot more followerren than i do. one of the most shocking moments of the entire shareholder meeting where everyone stopped and listened came when warren buffett and his vice chair, charlie munger, were asked about a company they don't even own shares in, valeant pharmaceuticals. that's when the verb alma chetties came out. vice chair charlie munger coming up next. stay tuned. here's charlie and warren, stay tuned. ♪ ♪ you wouldn't take medicine without checking the side effects.
3:33 pm
hey honey. huh. the good news is my hypertension is gone. so why would you invest without checking brokercheck? check your broker with brokercheck. . .
3:34 pm
3:35 pm
3:36 pm
3:37 pm
liz: dow still up about 14 points. -- 114 points. something interesting happened in omaha during the berkshire meeting, charlie monger sent shockwaves he criticized drug companies raising prices especially embattled valeant. we think the whole thing is fixed. valeant is a sewer. they deserve all they got. charlie bass, i want to bring you in here. you reported extensively on valley ant. it was down 3%. it dropped as soon as markets opened 10%. how did it go over with bill
3:38 pm
ackman, the baby buffett wannabe be? that is funny. ackman was in the audience. he was in the audience. he heard what was said. monger and, charlie monger and warren buffett, by the way great interview. i was glued to the tv before, when those guys talk you listen. they make a lot of sense in the investing world. these guys generally understand long-term value. they basically said, they basically put investors on notice this is a company that is extremely problematic. you put your money in there now. there is a battle going on wall street. liz, you and i were first to report this. this is company, people still long the stock even though it is going down amid all this congressional inquiries about them raising prices and all other stuff involving potential irregularities with dribs to, longs will say, listen this has a lot of assets, valeant. they own all those companies including bausch & lomb.
3:39 pm
they can sell the assets to pay down massive amount of debt and they can still be a profitable company. and shorts are saying, people not short but skeptical like buffett saying wait a second, this company made money by essentially buying other pharmaceutical outfits and turning around ramping up prices. the political pressure on them will be unrelenting. yes, they will have to sell assets. bankers still tell me they will have to sell bausch & lomb that they have2 billion in debt and they don't have -- 32 billion. power comes to the bondholders. you have that battle going on right now. i will just say this. this is a company that, you know, you really do have to believe that ackman himself who is a major shareholder will turn this around. that baby buffett will prove warren buffett wrong.
3:40 pm
i tell you that is a big bet, liz. i don't give people investing advice, but man this is company, when you have $32 billion in debt and being attacked by congress and warren buffett, you have a volatile stock on your hands. you pick your poison there. liz: you have got a problem. >> yeah. liz: still trying to call yourself baby buffett. thank you very much, charlie gasparino. okay, so, let me just bring in charlie monger here along with warren buffett. charlie, bill ackman really wanted you to speak to him because he said you're doing reputational damage to a company you don't understand. he wanted you to change your mind. will i change your mind on valeant? >> i don't think so. you know, there has been a complaint about my saying that valeant is a sewer. i thought the complaint would come from from the sewers.
3:41 pm
i didn't think anybody would be defending valeant. liz: warren, you said this company had seriously flawed business model. investors piled into it and tried to get you to go into it. >> that's true and, we have never been long or short a share. i have never personally been long or short a chair. berkshire, hasn't. charlie hasn't. liz: of valeant. >> of valeant. it is no secret at all, it was trumped their business model was to jack up prices among other things. liz: that is not illegal. >> i don't think it is wise when you take somebody with a life saving drug and you buy it and quintuple the price something of the sort. i think public policy and public opinion will turn against a company like that. liz: charlie, you've known warren for decades and decades, bill ackman likes to be considered a baby buffett.
3:42 pm
is he anywhere close? >> he certainly made a brilliant investment in general growth properties. he is totally right about herbalife. and he is very articulate and intelligent and he is a fellow harvard man. so he is not all bad. [laughter]. on the other hand, the main thing that valeant did that was inbelievely clever was to pay consumers part of the deductible for the drugs they were selling. that is totally illegal, medicas but that doesn't apply under the laws, under state laws. they saw that loophole. so they did, with all of the drugs that weren't covered by medicare, they paid the consumer's share of the deductible and they tried to pretend it was a charitable contribution when it was functional equivalent of bribing the other fellow's purchasing agent.
3:43 pm
so sewer was too light a word for the behavior of this company pierson before the senate committee. liz: ceo. >> the ceo was trumpeting this billion dollars a year they were supposedly basically donating things for patients until senator warren later in the hearing pointed out the fact that by doing that they were able to essentially jack up prices. it was totally in their interests and they were pretending it was in the patient's interest. >> charity and well-meant. and they're still doing it. after the thing broke into a catastrophe of public relations deservedly, he goes before congress and testifies under oath he is doing this great favor for civilization by the functional equivalent of bribing the other fellow's purchasing agent. this is not a normal company. liz: but as immoral you talk about, is it, with all the companies you've watched and looked at, the perhaps most immoral you have ever seen? >> no. there is a lot of competition
3:44 pm
for that. [laughter] >> free enterprise capitalist society. liz: you would lose that -- >> no, no. liz: looking that a lesson all investors can learn warren, from valeant situation, average investor watching right now what is that lesson? >> you can't put on the front pain you have a problem. one tipoff, when they paid $100 million on a option for a company to buy it for a dollar and sort. i never seen that my life. >> kept it secret and changed the accounting. >> you know something is wrong. anybody, anybody on wall street would tell you there's something nefarious behind a transaction like that. liz: guess what? the new york city sewer system is on the phone, charlie. they're agreeing with you. >> they should be. i will apologize to the sewer system for my comments. i meant no insult. liz: guess what. we hit session highs as you guys were talking.
3:45 pm
i think markets really liked what you're saying. dow jones industrials up 134 points right now. we're 15 minutes before the closing bell rings. when we come back, isis, china, terrorist, iran, global oil glut, international landscape, pock-marked with danger zones. warren buffett and charlie monger weigh in with that. the biggest threat they feel coming into our economy from the outside. the closing bell coming right back. have we eliminated too big to fail where you see it? >> the banks are not a problem, i'll put it that way. they are not a problem at all. u.s. banks are stronger than i have ever seen them. liz: what could you foresee as the next too big to fail? not the banks but -- >> it will be a surprise. that is why it happens because it's a surprise and there will be a surprise some day.
3:46 pm
these guys represent blood cells. if you have afib not caused by a heart valve problem, pradaxa helps stop blood cells from pooling in the heart... forming a clot... which can travel to the brain and cause a stroke. pradaxa was better than warfarin at reducing stroke risk in a study. in the rare event of an emergency, pradaxa has a specific reversal treatment to help you clot normally again. pradaxa is not for people who have had a heart valve replacement. don't stop taking pradaxa without talking to your doctor. stopping increases your risk of stroke or blood clots. ask your doctor if you need to stop pradaxa before any planned medical or dental procedure. pradaxa can cause serious, and sometimes, fatal bleeding. don't take pradaxa if you have abnormal bleeding. and seek immediate medical care for unexpected signs of bleeding, like unusual bruising. pradaxa may increase your bleeding risk if you're 75 or older, have kidney problems, stomach ulcers, a bleeding condition, or take certain medicines. side effects with pradaxa can include indigestion, stomach pain, upset or burning. ask your doctor about pradaxa. and its specific reversal treatment.
3:47 pm
hey sweetie, how was your first week? long. it'll get better. i'm at the edward jones office, like sue suggested. thanks for doing this, dad. so i thought it might be time to talk about a financial strategy. (laughing) you mean pay him back? knowing your future is about more than just you. so let's start talking about your long-term goals... multiplied by 13,000 financial advisors. it's a big deal. and it's how edward jones makes sense of investing.
3:48 pm
you premium like clockwork. month after month. year after year. then one night, you hydroplane into a ditch. yeah... surprise... your insurance company tells you to pay up again. why pay for insurance if you have to pay even more for using it? if you have liberty mutual deductible fund™, you could pay no deductible at all. sign up to immediately lower your deductible by $100. and keep lowering it $100 annually, until it's gone. then continue to earn that $100 every year. there's no limit to how much you can earn and this savings applies to every vehicle on your policy. call to learn more. switch to liberty mutual and you could save up to $509. call liberty mutual for a free quote today at see car insurance in a whole new light. liberty mutual insurance.
3:49 pm
3:50 pm
liz: breaking news. one day ahead of the indiana primary we have the two second place presidential contenders making their final pitch live right now to hoosier state voters. democratic candidate bernie sanders, republican candidate ted cruz, both in for the wayne speaking to significant crowds. speaking to warren buffett and charlie monger. china, trade, you heard it, both bernie and trump we have to have fairer trade. trump has gone further, charlie and warren. he said, in fact last night i believe, these are his words, folks, china is raping the united states. he wants to institute trade tariffs. what would trade tariffs likes what he proposed do to our economy? >> it would cut down on trade dramatically in both directions and would have negative effect
3:51 pm
on the economy. significant negative effect. i don't think he would do it. i don't think he will be president but i don't think he would do it either. liz: charlie, trade tariffs on china? >> i consider it absolutely essential to both china and united states they become two great and permanent friends and to start a trade war with china, well, it is not my favorite policy. liz: but he makes the point, we're getting the shortened of that deal. are we? >> well, we certainly help china buying goods and get them out of poverty. when they had people living in caves and subsistence. i'm glad i paid my share of helping china get ahead by allowing trade with china. i'm not ashamed of it. i don't feel taken. i'm glad we did. i hope we make permanent friends with china. to have the two superpowers of the earth not get along and pick
3:52 pm
a fight with coming superpower of the earth, for what reason? it is nutty. liz: but, again, both trump and bernie have both said that the system is rigged when it is coming to this election. donald trump says it is rigged, delegates, conventions all of that, it is crooked, do you agree? >> no. both parties have their own rules and all the candidates know the rules and their representatives know the rules and, you know, they want to run in some other country with different rules they can try that. but the system isn't rigged. it may be that the rules are designed, just take the electoral college. a small state gets two senators just like a big state. we say that is rigged for small states. that happens to be the constitution. liz: i can't help but ask you what do you think is threat to
3:53 pm
the american economy. a general said it is cyber security hacking and threat, charlie. what do you think? >> of course that's a danger and of course we'll have some future surprising events but that's the nature of human life. and the thread changes from one decade to the other. and, i just learned to minimize it as best i can and live through it. i'm afraid everybody else will have to do exactly the same thing? liz: warren? >> there are seven billion people on the earth and number of them are psychotic and religious fanatics and so on and weapons at their disposal, at their disposal are far greater in their power than many decades ago and most important job of the president of the united states is to protect the citizenry. that is going to be a big job. liz: let's hope he or she will do that. >> particularly she. liz: yeah. stand by with more from warren and charlie. six 1/2 minutes before the closing bell rings.
3:54 pm
when we come back what the richest minds think will drive america's innovation and future of america and future of berkshire leadership. "countdown to the closing bell" coming back live with warren buffett and charlie monger live from omaha, nebraska. ♪ this weeks btv spotlight features parnell pharmaceuticals, parn on nasdaq. parnell is focused on delivering innovative solutions to unmetanimal health needs in the 70 billion dollar pet market. we have core competences in drug
3:55 pm
discovery and development, regulatory filings, we have our own fda approved manufacturing facility and we have a significant commercial presence in 14 countries. zydax is our lead compound that we've been marketing in australia zydax affectively regenerates cartilage and can literally save lives. we had one of our sales executives tell us a story of seeing a dog in a clinic that just four weeks earlier had been brought in to be euthanized. the pet parents had to carry the dog in, it couldn't even walk. after just four injections of zydax the dog was bouncing around in the clinic. we will soon launch that drug in the united states and also europe. parnell pharmaceuticals, parn on nasdaq. for the full interview go online.
3:56 pm
3:57 pm
liz: three minutes before the closing bell rings and i have to ask this question of charlie monger and warren buffett before we go. 10 years from now, as you look at the stock which is at about the $220,000 per share, which is unbelievable because it has never split, no dividend. 10 years from now, charlie, which part of that will be changed? >> i don't think it will pay a dividend. i don't think it will split and i think it will be considerably higher 10 years from now. those are easy questions. liz:
3:58 pm
>> i agree they are easy questions and i agree with what he said. liz: god willing you will be here so i can redot tape. >> i confidentially predict i won't be here. [laughter] that is easy question too. >> i'll be here and spoke for both of us. >> through a medium. [laughter] >> i will have my quija board. liz: tell me what you think will drive american innovation? >> market system has done it since 1776. the market systems are wonderful in this country. think what we have now we didn't have tent or 20 years ago. it was a plane totally desolate was 100 years ago. look at cars and houses and air-conditioning, you name it. no, the world it just beginning this country has a fantastic future. >> liz: charlie he is very optimistic. are you as optimistic? >> not quite. hard to be more optimistic than
3:59 pm
warren. no, i'm a little more pessimistic but i'm still a foolish optimist by normal standards. liz: would you recommend optimism to americans? look, it gets scary sometimes, warren. we have people looking sometimes at their job situation and terrorist landscape right now. it is worrisome. >> anybody that has bet against america since 1776 eventually lost the bet. this country works. >> it has worked better for all classes. virtually every 20 years. hardly a 20 year period in the history of the republic when it hasn't worked better to practically everyone. liz: people are watching right now wish they could feel that but do you think eventually they will? >> luckiest person born in the history of the world is the person being born in the united states today. liz: flag-waving starts. it is great to have you both of you. thank you so much. vice-chair of berkshire hathaway, charlie monger,
4:00 pm
92 years old. warren buffett 85 the young pup of this group. >> i'm the kid. liz: you're the kid. great to have you both. don't sell first day of day. market set for nice gains. here is the closing bell. [closing bell rings] melissa, dave asman pick it up from here. melissa: stocks climbing this afternoon. the dow ending the day up triple digits. i'm melissa francis. david: i'm david asman, this is "after the bell." at this hour, we are one day away from crucial voting in indiana. the candidates barnstorming across the state, marking their final pitches to voters there. donald trump is expected to take the stage any moment in carmel, indiana. meanwh an animated exchange with one of donald trump's supporters in marion, indiana. cruz fighting to keep his composure as protesters shout insults. we'll play some of that coming up. melissa: donald trump is aimin


info Stream Only

Uploaded by TV Archive on