 Good day, film investors. I really enjoyed Buffett's CNBC interview of two hours as Buffett is one of the main characters on this channel and I thought I'll write a few notes and summarize it in this podcast. So I really hope you enjoy this, click like if you enjoy, leave a review if you are listening this on any podcast available out there. So on the content I want to discuss what it is all about when it comes to Buffett, about his views on the coronavirus, interest rates, Berkshire stock and portfolio management. Let's start. So the first interesting thing is this craziness that is unfortunately probably a necessity with media. So Buffett keeps talking about long-term about where the businesses America will be in 10, 20, 30 years and what does the news do? They keep showing these changes in prices day by day, day by day, down is down, the Dow is down 10,000 million points this morning, this happened, this is up 2%, this is up 1% and it's crazy how during the whole two hours it's up to you what you are focused on but unfortunately I feel that many are really focused on these changes in stock prices, changes in oil prices, changes in whatever exactly doesn't matter according to Buffett. So let's start immediately going into the content how investing is about businesses, about investing in businesses, forgetting about the markets and simply allowing for compounding. As what Buffett say, we get rich on the earnings and the new earnings from the retained earnings. So when a company and Buffett owns companies that reinvest those earnings at a 20% return on equity on tangible equity and that's how he gets rich, that's how the compounding is allowed and that's all what you have to do. Invest, reinvest earnings, allow for compounding at the highest possible return on equity rates. Now on markets it's very simple, you can't predict the market and you certainly can't predict the market by reading the daily newspaper. The only question you have to ask yourself before buying something is are you making an intelligent purchase? In relation to your financial goals I would add. So you look at something okay what is the price earnings ratio, what is the growth, what is the mode, what is the likelihood that this business will still be there in 10, 15 years? Will it be bigger? Does it have retained earnings to reinvest? And then you think okay am I making an intelligent purchase for myself? That's all you have to ask yourself when it comes to investing. Now we see so much panic but in the last 10 years it has all been about stocks going up, growth, chasing whatever was the hot stock at the moment but when it comes to investing whether you are making an intelligent purchase or not depends on the price in relation to what is offered. So as Buffett always says discount the current and future earnings to the present day and then you see according to your discount rate what is your what is the price, whether something is undervalued or overvalued, whether something is undervalued or overvalued depends on you. On bonds versus stocks very simple 2% Treasury with fixed earnings while stocks will always keep growing their earnings because that's the nature of businesses they can increase prices alongside inflation, something that the Treasury can't do and on trouble on the markets trouble is always coming but by stocks if you get enough for your money that's again related to price. On the coronavirus it makes no difference to his investments 80% invested he is news are mostly bad all the time in 10 years the economy will be better than it is now. On Apple his biggest position it really suffered due to the coronavirus up till Monday but now I see a rebound especially as I'm filming this but still very interesting to see how the markets think only one way it's either exuberance or panic however if you're an investor like Buffett you know that in 10 years Apple probably will be a better business than it is now new products who knows but high cash flows probably and that's what Buffett is investing very simple. He has no idea how businesses will be affected over the next six months year but 10-20 years from now businesses will be doing great. On the question whether supply chain issues will be will be detrimental to the economy he simply again responds long term long term long term where will it be all in 10 years he discussed it with Bill Gates he's bullish on the long term outlook for prevention so now could be the chance to get businesses cheaper so we might see a lot of panic but it's likely that later longer term we will learn how to deal with this as humanity has always learned how to deal with issues that's one of the best things about humans we are resourceful and we find the way to get out of trouble sometimes we make it our own but that's a different story this is very interesting everybody says that Warren Buffett bought the airlines all four big American airlines and I recently made a video about them however he said three positions are mine and one isn't one is from the others so it's very likely that American Airlines is not his position because of the debt the three stocks are all similar with lower debt levels but American Airlines is something he probably didn't buy the other guys that work for him bought it very very interesting again the same answer on the coronavirus 10 years from now more passengers good margins for again competitors on zero interest rates and banks don't go for the yield live learn to live with one percent is his message so more risk taking place to chase yield which is stupid and that's bad for savers and pension funds but good for the government on the long term it's hard to believe again another 10 years from now to still have negative interest rates however it's very easy to borrow and he is simply prepared for anything there are 14 trillion negative rate that Greece needs to pay only 1% on the 10-year Greek bond which is insane federal deficits are piling nobody is concerned what world comes out from this Buffett doesn't know and he's always as always ready for anything with his 120 billion in cash it makes absolutely no sense to lend at 1.4% when it's government policy to have 2% inflation on Berkshire whether it is a holding company well he says index funds are also holding companies and those don't get discounted so no reason to discount Berkshire whether Berkshire if split up should be higher value well yes if you do it in the short term and if you use a lot of leverage however you have to pay a lot of taxes if taxes if you do that and they will not risk anything just to leverage themselves to the sky like many others are doing thanks to the Wall Street super salesman on beating the SAP 500 he says very very intelligently that investing is about the risk and reward you have to compare Berkshire not just from the reward everybody's talking about he didn't beat the SAP he didn't beat the SAP he didn't beat the SAP well he says it's about risk and reward he says they will not be in the top 10 performances of stocks for the SAP 500 but they will certainly be in the lowest risk the style and on balance Berkshire will do a little better than the SAP 500 depends on the market so 5 to 8% is my assumption 5 to 8% is a big difference not just a little bit better so Warren Buffett still thinks Berkshire will beat the SAP 500 he is 80% in equities 20% in cash if interest rates stay low he will wish he wishes to be 125% in equities but that's something you can never know and he's therefore prepared for anything on ETF purchases for Berkshire he says it's probably some pension fund in some company that acquired debt without his knowledge so it's not Buffett it's not actual Berkshire but the subsidiary somewhere that gets consoling consolidated also Kroger is not a Buffett purchase very interesting to see the separation among what he is buying and what others that are working for him are buying on portfolio management something very curious here is something you learn over decades is not something you have to sit day by day and he says that there were periods of 5 to 10 years where the best thing he could do was to do nothing he traded he sold Disney and things like this that but the best things would had been to do nothing and that's something you learn over years how to manage a portfolio you don't have to watch a portfolio day by day so to conclude when people panic everything freezes but focus on Warren Buffett and not on all those numbers going up and down I know it's hard but that's the core of long-term investing and if you're a long-term investor as always subscribe to this channel click that notification bell so that you get notified when a new video comes out thank you and I'll see you the next video