Overview:
The Oracle Of Omaha Warren Buffett (Trades, Portfolio) sat down Monday for a three-hour long interview with CNBC.
During the interview, Waren Buffett discussed various topics ranging from the markets to all that cash he has. Buffett talked about the $29 billion gift the government gave Berkshire Hathaway through the tax cuts in December. He said the corporate tax cut will help American business and allow them to compete better with the rest of the world.
In the interview, Buffett also discussed how there aren't good companies selling at fair valuations to purchase outright. Currently, Berkshire Hathaway (BRK.A, Financial), (BRK.B, Financial) is sitting on $116 billion in short-term Treasuries and cash.
Buffett was asked about Berkshire Hathaway not offering a dividend as a way to return some of that cash to shareholders. Buffett said that shareholders have voted on it a few years ago and voted not to have a dividend. He clearly believes that Berkshire can use that cash better in creating value for shareholders than giving them a dividend that they have to pay income tax on.
During the interview, Buffett discussed the difference between investing and speculation. Buffett gave his views on inflation and how he believes that stocks will outperform inflation in the long run.
He went over General Electric (GE, Financial)Â and the mistakes the company has made and how it hasn't been a model for accounting practices over the last few years. Buffett made it clear there are pieces of General Electric that Berkshire would love to purchase at the right price.Â
Interview with CNBC:
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