Warren Buffett: Stocks are 'ridiculously cheap' if interest rates stay at current levels
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- Опубликовано: 5 май 2019
- Warren Buffett, Charlie Munger and Bill Gates sit down with CNBC's Becky Quick to discuss the state of the markets as well as the overall economy and the Fed.
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![Eminem - Houdini [Official Music Video]](http://i.ytimg.com/vi/22tVWwmTie8/mqdefault.jpg)
Munger's glasses are so thick he can see the future.
Genius! 😂
LOL amazing!
He is from the future
Well, he laid it out on a plate for everyone... 🔊Listen real close📉
🔊 7:17
Mr. Munger is amazing , at 95 years of age and still sharp as they come ! Congrats Sir !👍🍷
No, he noted how the low interest rates only made the rich richer, and then he followed by, but that wasnt intenntional, and it will fix itsself, my bs alarm went off right then.
An inspiration..
@@budgetking2591 can you please clarify? Please.
@@budgetking2591 true he seems to be losing it but then again he's 90 plus
Those 3 have more than net worth of all the viewers of this video combined
what if they all watched it too?
They have higher net worth than a lot of countries.
@@adhdoers8814 😂😂😂😂😂😂
people in this video? nah they can buy a few countries.
those three have more money than the bottom for 15% of the entire world's population
If she pulls a Sharon Stone move, Munger is gonna have a heart attack.
What's a Sharon Stone move?
@@Ishaq_Vally Google it
@@Ishaq_Vally If you never owned a VCR you may not know but i wore the tape out playing it over and over as did most of any hot blooded male.
I’d say he’s seen some things 😅👌🏼
hahahahahahaha Spot on ;)
Massively misleading headline.
it's CNBC, what'd u expect
This is a new low even for CNBC. Buffett was saying certain variables have been aligned in a way he never expected and if they stay that way (which he doesn't expect) then stocks are ridiculously cheap. He wasn't bullish at all and that is obvious by looking at the piles of cash Berkshire is sitting on.
@@gregharrison76 that's what the headline says! Do you want them to write a headline a paragraph long to explain every nuance!?
Alex Morgan coming back to this now, he’s still in over $100 billion in cash 🤣🤣🤣
Bill seems like he knows something he wants to tell everyone but can’t
more like he knows nothing about investing, but is just rich so sits with those 2 other life-long investors
He was heading Microsoft, a multibilllion company since he was in his 20s, I am sure he knows more than an average chap about financials
Had the same impression😂
@Mathew I understand why the 5% budget deficit does not click with such low interest rates but i don`t understand what is it about the full employment. Do you know why full employment is strange with those other 2 conditions?
@Mathew makes total sense thanks for taking the time to reply! Much appreciated
Ignore what they say. Watch what they do.
Facts. Their own words sway how the market moves, why wouldn’t they use that to their benefit.
So buy amazon now? Buffet’s words are consistent with his actions. There are good deals out there for the time being.
they're already the richest people on earth, both pledged 99% away, they don't care enough to be trying to trick everybody.
@PJ R Forgot to take your meds today?
TyKOmain Buffett didn’t buy Amazon. One of his managers did, Todd or Ted
Just great info with Buffet saying he couldnt' have imagined these circumstances occuring.
Buffett looks like the older gentlemen in the movie UP
Mr. Frederickson!
Carl Fredrickson.
I'll believe it when i see Berkshire's cash reserve going down
He said stocks are ridiculously cheap if fiscal and monetary policy stay constant. It's impossible.
Their policy always has been to build up cash reserves during a boom economy.
@@jamesyoo67 booming economy is not the reason they go heavy on cash, expensive asset is
@S S they go heavy on cash because assets are expensive. they don't know, and will never say when a peak or bottom is, that's amateurish
@S S thats right, its what makes most sense. ive always said, pile up debt while economy is down, pay it off and build up cash during boom so you can buy up cheap, makes the most sense. the avg person is building up debt now to get screwed during downturn then save up. its makes no sense to me
Man selling stocks: great deals for a limited time only
This might be picked up wrong by people - he’s making the point that in a world where you can get cheap credit long term and stocks are performing then they’re “cheap”. Be cautious.
Yeah. In hindsight it is easy to say now, but yes - what Warren meant was that if those three factors hold true (and who knows what held them up for as long as they were) then stocks are cheap. But it all defies logic to make that assumption.
There you go Munger said it, "we end up like Venezuela" Hope it doesn't happen but be ready if SHTF.
The Insiders I think he just saying that inflation will go so high like Venezuela.
@The Insiders Try every failed fiat currency in history.
@The Insiders Increased money supply in circulation = more currency chasing the same amount of goods. This creates higher prices.What don't you understand about that? It is not tocket science...
@The Insiders would oil stocks go up or down? 🤔
@@tommy35ss Why would you assume the same number of goods? There's not a model nor experience in history that supports that assumption.
The vibe from this year interview and last years is very different. It seems like they’re aware of it
Sesamestreet9080 Different to you in what way if you will?
Warren was more optimistic last year, this time round he admits he's wrong in his optimism thus far.
@Marco Deo hi. No growth since 2000? Your earlier comment suggests it dropped 66% and recovered to break even. No growth since then?
@Marco Deo so your saying own individual stocks?
This is a way of saying the market is in a ridiculous situation and should be tanking any month now
bills face when he said stocks are cheap
Lmao
What's funny is he literally just interviewed saying valuations were too high
They're all pieces of shit
..."if it goes down this threesome is comfortable..." Twice. Get that sweetheart? It's your problem not ours.
Those that worship are about to be taken to church.
Something to take into consideration is the worldwide LME market on scrap and pure bullion valuations according to reserves. That will ultimately dictate a lot. Hey Bill, have you been partaking of the green leaf ?
Clickbait title. That's not what Warren said. He said they are ridiculously cheap if the relationship between unemployment, interest rates, deficit spending and growth stay the same.
I thought you were a performence artist, not an investor
@@wesha3953 What do you think I do with all the money from those fisting sessions?
Agree. Very misleading title, Buffet basically said the macroeconomic situation is unsustainable, if it were sustainable then stock would be cheap.
When was the date of this interview?
If mass media say 'STOCKS ARE CHEAP' its time to SELL !!!
true.
With a rough estimation: true. As long as central banks make so much cheap money, everyone will invest and economy will boom.
Thanks for making the smart people rich. We appreciate your charity.
Correct
And now?
Charlie's the OG..love his straight talk..
She is a total stunner
Not really... she is just a normal woman... some 40 year old virgins are quite desperate and will worship anything that's female...
Bill was telling you the market is falsely inflated and will crash. He is amazed.
Really enjoy Becky Quick's relaxed style and the intimate fly on the wall discussions. Plus it's always good to listen to old wisdom that has lasted over market rallies and corrections.
3:11-3:41 Pursue being debt-free. I agree with that position, Munger! You're not alone!
Well worth a listen
My pic cannot find found in google you know .?
There has been no inflation and economic growth despite low interest rates because we are in the midst of a deflationary demand driven cycle where prices of a lot of things are going down significantly (phone, internet, cars, deliveries, TV, ) and that's boosting consumption
Thank you for all the help you have provided l will honour both buffet and munger for their great support
Technological advances are boosting productivity in ways we are not measuring resulting in dampening of inflation in my opinion.
Yep, and it's happening globally, so much so that deflation is a far more troublesome adversary and that's a great thing
Is the economy run on productivity or employment? Increasing productivity at the expense of employment will only result in a destitute population. But everything will be oh so convenient.
why are they even asking Gates he is rich from tech.....do they ask Buffet about how computers work I mean
Becky knows what she's doin
Those are the avengers
What Munger says at the end of this... “stocks falling 90% but we don’t want to see this world.”
Would it mean it's cheap to buy for the poor class? 🤔 or wealth transfer? 🤔
Long legs for the old rich guyz
Stocks are cheap when you have access to almost 1 percent loans
3:23 is that true?
Yes. We borrow from nobody.
Proof that money makes you happy and lives longer
Welcome to Singapore
Well when you got the chips it’s easy to say that
Insurance is a complex company and business structure, I developed and helped with architecture for several large insurance systems including IKEA (IKANO Insurance) . But if you dont think that the architects/developers at spaceX and Tesla can create a top of the line insurance system and be competitive you are delusional.
Strange. It must have jumped to the next video before I started to post. My comment was on the mocking from Warren about Tesla going into Insurance category.
Munger hit the nail in the head when he said with 30 yr bond at %3 stock should be %90 lower. that was eyepoper
I don't understand the correlation between low 30 year bond rate (at 3%); and that meaning a low value/prize on (company)stocks (90% lower)?
I mean, low interest and thus returns on 30-year bonds; would lead people to sell their bonds and buy stocks for higher returns (hence a higher demand and thus prize/value for stocks). And lower interest rates, means companies can spend less on interest costs on loans, and thus make more profot; causing companies to be higher in prize/value.
Am I missing a correlation here? What am I overlooking?
@@quxantipe when bonds yield higher people tend to invest in bonds rather than stocks which is a risky investment. what he is trying to say is historic average yeld on 30 yr treasury should be much higher than today %3. thats why money is running from bonds and going to stocks. 30 yr bund yield has been artificially suprassed to discourage investors from govr bonds and into stocks ( thats why fed reserve is the biggest buyer of bonds so govt can function normally). if fed reserve allow 30 yr bond yield to rise to market value then we easilly see %5 or %6 yield which cause big selloff in stocks. i personally think bnd yield should be %8 or %9 considering debt level of usa govt
@@jibberjabber-fm6pb Thanks.
I looked at the historical chart of 30 year bonds. Now it sells at round $140; in the 80's when interest/yield was high it sold at around $95. I found that hard to understand at first sight, because those high rates/yield on bonds in the 80's would expect them to be rated at high value; and now with low rates at low value/prize?
Or am I missing, that I need to add in the inflation factor aas well. As in that the difference between the bond-yield% and current inflation% counts only?
Would that mean that if the yield goes up to: 6%; that 30 year bonds will drop in value? Or is that only dependant on the gap between the inflation percentage and the yield?
Why was 30 year bonds not very high in the 80's with hugh yields (percentage wise)?
www.investing.com/rates-bonds/us-30-yr-t-bond-advanced-chart
@@quxantipe there is not set price for all bonds. bonds are denominated in amounts of $10 all the way up to $10,000 and buyers determine how many bonds they hold. when people talk about bond prices going up and down, they aren't referring to a single bond, they are talking about everyone's collective bond value increasing or decreasing because of supply and demand. interest rates determine whether people would like to buy bonds or try their luck in other asset classes for a higher yield
@@davidbasset7557 I never knew there wasn't a set price for bonds, I always tought bonds started out at $100 per bond + yield at that moment of giving out. Thanks for sharing that info. Now it makes more sense.
Charlie munger always liked sound money. Respect him for that attitude
"No inflation" mean while;
Prices of food, drink, energie and other things keep rising. Sometimes the prices doesn't change but the amount of food you get does.
Milion dollar homes or appartments in cities wich most people can't aford
40 milion + people using foodstamps and living on the street
People have multiple jobs to support there family
Stores are closing, some cant make a profit becouse of higher prices or wages
Sure no inflation
Piet zaken first people dealt with the inflation by the women working movement, then taking loans, what ever’s next is gonna be a big one. How many times can people use last resort?
TheMusicShaman
You do not have a future in economics. Nicest thing I can say after a comment like that.
This was said by Robert Reich - Bill Clintons secretary of labor. Do your research idiot @@topcomment3816
@@topcomment3816 xd
TheMusicShaman
“If women would just stop working, we wouldn’t have this inflation. It has nothing to do with federal monetary policy.”
- TheMusicShaman 😂
is she the only one who interviews warren buffett ?!!! every warren videos i see her !!
@@sensemarket1487 Don't be an ass. She is a competent professional.
Notice that Buffett was the one who brought up the actual econ number in details before explaining his take on why stocks are cheap vs. we are at ridiculously high and for how long , and before throwing punchline “too high” but “I’m in equity by it’s a bullish account” or “everything should go down 90%”. Munger forgot to go long since 2010 probably.
I'm just watching this video because that gir's legs are amazing
if a stock market maker says his stock is cheap, he will be about to cash out all his stock from you.
You are welcome.
cannabased - exactly. The 10y is about to be dumped so hard.
If you know so much,Then how comes you are not sitting there???? And rich too???
How much money is in circulation?
Bruce Liu all of it🤣🤣🤣😂😂
@@marchristopheradkins9710 I disagree most of it is in bank accounts not moving.
@@bruceliu1657 I can see why you say that. when they teach you to be frugal with your money and save everything and invest it I can understand. But I was joking 😂😅
Around 10 trillion give or take 🤔
The currency (what everyone calls money) is debt, and if all the debt was discharged or paid off, there would be no currency (what everybody erroneously calls money) in circulation, and the economy would collapse. This is the basic problem; we need to fix the monetary system. Bill Still has made good documentaries on this, monetary.org is a good site for ideas, and the videos "Money As Debt" are really good.
Most of the inflation has been in asset prices.
The rest is hidden in the manipulated figures.
Hey can someone please repeat in easy words what charlie said at the end? Is the 3% just attractive when the stock market goes down 90%.. Im on the way to teach my english but atm specially this i didnt understand :/
He said "this threesome" (meaning himself, Buffett and Gates) will still be comfortable if everything goes down by 90%. In other words, they're all so rich that they'll still be billionaires even if the market goes down 90%. But that would be bad for people who aren't rich, so he doesn't want that to happen.
I wonder what they would say now... Interest rates all nearly at 0... 10yr is at .55%... and Fed has increased the rate of printing to solve the problems caused by COVID-19
Well, the amount of additional money due to qe in europe is below 3% of current circulation. That is not going to cause hyperinflation.
Money velocity is also in the toilet, lowest since 1970s.
Bill Gates is talking "jibberish".
looking after 3 years, it was a genius title...
How did cnbc get the title, stocks are ridiculously cheap from the video!? 😂
Buffet says it at 7 min mark
CNBC knows how to put up click-bait titles
Hahaha, listening to Bill Gates describe his portfolio: 'It's got overseas exposure.' He should just say: 'Well, I own half of the planet.'
"This three sum is comfortable if everything goes down by 90%"
For that reason I'm out
He is saying this because they have money in the bank and will be able to weather the downturn. If you listen closely they are carefully choosing their words. They are implying that we could see a hyperinflationary scenario if things continue as they are. In Venezuela when people couldn't buy food with their money the stock markets in that country were going insane. Stocks were going through the roof. Their unspoken message is to prepare for a big downturn and hyperinflation.
@@corneliusjones7349 Hyperinflation yes! But 90% DOWN. Can you calculate the 90% numbers for the Dow, S&P 500 and Nasdaq for me?
@@corneliusjones7349 interesting comment, please elaborate
This 3 some is comfortable if equities and everything else goes down by 90%. That's where fair value is.....90% lower. Exactly what we need to set things straight.
If you believe in MMT with no inflation, then trees are ridiculously small. Trees will have to grow above clouds, followed by asset prices, as always.
Chasing Yield
I'll keep buying Berkshire B! I can't afford A!!!
Good! Esp the “prepare for everything 90% down” comment.
"uhhh"-Bill Gates
I wish buffet and charlie live upto 100 yrs..
sanket patel why?
Must be a Berkshire shareholder
Munger is only 5 off
Gates saying "ahh" the whole time. xD
Listen to Billy trying to sound like he knows what he's talking about... So cute
I have to say at any age in my life I would had concentration problems with this charming interviewer , interestingly Bill has a big smile.
“Any government should borrow money” - No, giving government the ability to borrow money creates a situation like we see in the US today ($22 + trillion, $100 + trillion unfunded liabilities in debt). Unaccountable governments + centrals banks = out of control debt. It is as elementary as that.
Thats a very very rich audience for the mademoiselle!😍
THIS IS GOLD... " THIS 3 SOME IS OK WITH EVERYTHING GOIN DOWN 📉 BY (90%)"
SO IN ESSENCES STOCKS WILL FALL 📉 90% OVER THE NEXT 3 YRS..
Thanks Warren Buffett I never got to meet you but you have been a great mentor...
WOW!!
Of course they're plugging stocks, that's how they're rich.
Ridiculously cheap with the S&P at peak highs / Resistance?
Both dishing on MMT I don't blame them at all
6:49 - the word warren is searching for is "harmony"
Young Ebitda 6:40 actually
Thipewcal difficuos
He said the exact same thing 2 years ago
When you have 10 billion and the market drops 90% you still are a billionaire.
I will short it if it was possible
Charlie Munger is a beast
If stocks r so cheap why does Berkshire have over 100bn dollars in cash ???
Cuz they have another 100bn in the market lol
I think he meant cheap compared to an environment with hyperinflation.
Well... stocks are no longer as cheap as they were in 2019. The PE ratio has gone from ~21 to 40. A few more years of QE and we'll hit a PE of 100.
2020: BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR
That's a big if statement to use as the header for your video CNBC. Nothing about this interview was positive. Yet cnbc's putting a positive spin on. Buckle up buttercups. Things are about to get rough.
Life's good when bank accounts are full
Ya , no kidding 👍
It's interesting Gates started talking like an investment manager. 😀
And Warren and Charlie talk exactly the same. All those years of being together has made them imitate each other.
All this years I been thinking Charlie and warren just look a like.
Same voice
They are all transforming into one person
Re election coming. They need to drop stock market to its knees as economy is failing to blame it on trump. If u planning on buying a house in next 12-18 month pls hold off . Real estate and stock market will make 2008 look like a joke
Totally agree with this theory
You're highly mistaken. Wallstreet wants trump desparetly. No one cares about fundamentals but profits, and trump is the massiah to them. He WILL get reelected and after market gets correction from trade war it will rip again. As long as trump is in the office the equities will take fleight
Just a Dad - or we could get a MELT UP during that time. it’s not a bad theory but it’s so obvious it’s not gonna happen. All the traders i know think we are melting up because monetary policy is going to stay very low for a while. However; if bonds sell off hard and 10y yields were 4%.... then yes people would have incentive to sell equities and buy bonds.
Been saying that for years. Stay out or watch out below. But it seems peeps are as mezmerised as Gates is surprised. But people are still buying. Some serious cool-aide has been doled out.
The goats of finance
At the beginning I thought the question was for Warren or Munger, I'm too young to remember Bill talking about stocks
He does know a thing or two about business and the economy
@@ramboxlegacy14 He probably knows a lot, he ran a public company for like 20 years, he hangs out with Buffett and reads a lot, but I meant that doesn't seem like one of his areas of interest to have a conversation, never heard him talking about that before
If Bill says the markets won't go up -- they WILL. The rest of the world has borrowed a lot of US dollars, and what they don't need is a stronger dollar by raising interest rates, as their debts will become unsustainable.
Meanwhile these 3 are distributing to unsuspecting future retail bagholders. What a joke.
So what is causing treasuries to yield so low when it seems they should be higher?
The fed is buying treasuries. Also short the vix and manipulating gold and silver. Free market!!!!
I just watched for the leggs too...
Try going outside and talking to females...
Gate : YOu need a computer
Buffett : at 2019 I still dont have one
Munger : ET phone home! (hell his eye look like ET with those glasses)
These billionaire laugh at #45 all the way to the bank when they buy up all These big business up...
all 3 are big numbers as investors. nobody knows the future. the only thingh i know is, that gold will find the key figure again in macro problems. i am invested in gold mines, certainly in argonaut gold. big number too.
Stocks are cheap but valuations are high. Can some shade more light.
They are saying valuations are high at the moment but cheap in the long run. They are saying we will see hyperinflation
@@corneliusjones7349 cheers for that!
*Before* watching video: ohh let's learn something about Money making🤩
*After* watching the video: No clue what they meant🤔