Warren Buffett’s Interview on CNBC

Warren Buffett was the guest for a full three hours on CNBC’s Squawk Box this morning. This was from 5 am to 8 am at Buffett’s Omaha location. I am not sure how many 85 year olds would or could go on live T.V for three hours starting at 5 am twice a year as Buffett does.

Some of the more interesting comments from Buffett were that:

Low oil prices are unambiguously good for the United States as an oil importing country. However the negative impacts of the loss of capital investment value and the loss of profits occur more or less immediately while the benefits are slow to be realised as consumers save money over time on gasoline.

Negative interest rates are unprecedented and none of the economists of the past even contemplated that negative interest rates could be sustained. We are therefore in uncharted waters. Negative interest rates drive up the value of all income-producing assets. (He mentioned or alluded that there is really no upper limit to asset prices if investors could borrow at negative rates to investĀ — which, however, they can’t do).

He included his long-standing advice that investors should stop looking so frequently at stock prices. He also mentioned that it was strange that people seemed to worry so much about the predictions of economists when he did not know of any economist who had gotten rich in securities by following their own predictions about the economy.