Will be joining us. But first the top stories. Its nice to see you again. Well do these stories in a second. Well take a look at comcast. It looks like they are beating it looks like they are beating on both the top and the bottom lines there. 79 cents, x items, and then 17. 83 17. 83 billion in revenue. Okay. In the year ago quarter, you had sochi, this quarter, you have the super bowl. So to compare apples to apples, theres a lot of excluding of different revenue metrics. Comcast is excluding olympics and super bowl but Thompson Reuters is not. Most of these numbers look like they are above analysts expectations. We should point out just right off the bat here i think the company is going to there it is Share Repurchases. People were talking about that. Once the deal brian alluded to it when he was on the show. Also combined with the Dividend Increase youd like to send your application to an additional lpder in the future. In some cases the story looked at four or five individual cases, maybe even more than that and in some of these specific instances the allegations are that the Clayton Homes offered one family a 7 loan, turned around it was a 12 loan. Theyre painting it as a bait and switch essentially, and obviously there are a lot of cases but in some specific cases it sounded like there was pressure put on some of these individuals. All i can say is that 300,000 loans were made. In the last three years, people frequently write me and complain about an insurance settlement someplace or they bought a tv set someplace, of one of our stores. All the letters get to know. Ive not received one letter from Clayton Homes and we sold in that period maybe 75,000 homes. We have 300,000 mortgages. And we have been examined in the last three years by 98 different state, well weve been involved 98 times by state regulateorregulators were listened in just about every state, and in 98 cases we were fined, once we were fined 5,500, got the fines right here, once we were fined 1,400 by tennessee in 2012. We were fined 3,000 by michigan in 2013 and i think we were fined 5,500 by one other year, and thats from 98 state examinations so 98 times the state regulators have come in and checked you theous and thats what they have found examining our loan files. You make the point there were over 300,000 home loans, this focuses on a small number of them. What about that these particular instances. Do you know if the authors of the article were correct in the situations of a few heartbreaking stories where again if the article is to be believed it sounds like a clayton home representative put undue pressure on these people baited and switched did a bait and switch when it came to some of the prices that came through. Thats what i think shareholders had trouble with. Lot read is this really what our business is . They get the form they can send their application in any group, and any bank thats on that list including their local bank and the local bank makes more loans than anybody else. Youre speaking broadly. Im speaking specifically about the individual cases. Do you know the individual cases . I dont know the individual cases but weve got 300,000 loans and i dont doubt that some people didnt wouldnt understand making a loan. Im sure that 300,000 people buy stocks, some dont understand what theyre doing but i dont see how you could have anything more clearly than the loan application or the lender board that describes the terms from every lender that wants to be out there for our loans, and there are many cases where if they get in trouble on their loan we give them modifications or something of the sort. We cannot for privacy reasons name loan by loan what we have done with anybody. Were prohibited by doing that so i remember that one time there was a nationally Televised Program not about manufacturered home loans but other loans and they had a woman there unhappy about losing her home and all. It turned out when they examined her she refid it four times more than what she paid. The privacy rules keep you from responding to that. Okay. You mentioned that of these loops you put out, again these are loans that are made to individuals who probably dont have great fico scores. Right. They are individuals who maybe have a little more tenuous income. Theyre a greater risk theyre a greater risk. You said about 3 of the loans go bad. Yesterday the Seattle Times took that number you used it at the Shareholders Meeting saturday said 3 annually go bad but if you look at pool of mortgages over a period of time that number would be much higher. They took an example from one of your competitors where they said their loans annually went bad at a rate of 4 but over eight years it was closer to 20 . The implication was the numbers would be similar at clayton. Are they correct in that assumption . Correct in any case car loans, talking about freddie and fannie loans, they give you the foreclosure rate by year and its true if somebody is in the fifth year that would be added but thats true of all, every foreclosure rate that you read and our foreclosure rates for these people generally have poor fico scores have jobs that are less secure our foreclosure rates are considerably lower than a great many of the mortgages that people borrowed in 20072006, from all kinds of other organizations, but everybody has foreclosures. If you just help the people that absolutely are stoern pay like me, a lot of people wouldnt be denied the chance to get homes. Some people take some risk in putting down a 5 downpayment. The average payment on our loan is under 600 per month for principle and interest. You saw the house we had there for 69,500. Its 1200 square feet a couple of bedrooms includes the appliance and air conditioning, you have to supply the land. Its bargain living but its being offered, youre not buying one and im not buying one and people that are buying them are people who if they lose their jobs are probably going to lose their home but if they lose their home and we have the mortgage, we lose money, too. We have no interest in putting anybody in a house that theyre not going to be able to pay for because well lose money. You definitely lose money in every case because one of the things the article pointed out these homes unlike other homes get repo cessed by cars. Youre definitely losing money every time a loan goes bad in this situation. We lose money, we lose significant money. I can tell you what we lose because the average loan when we take it is only 40,000, another reason Interest Rates have to be higher. These are much smaller loans that youre servicing and our loss runs about 40 of the mortgage balance, so if we possess a loan of 40,000 we probably lose maybe 16,000. Lot of times when people leave there is a divorce, or they lose their job, they dont leave the house in the best of condition. We find the rugs torn up and not everybody does that obviously. If they have no equity in the home and theyre mad, for one thing they stay in it for a while and dont pay us anything they got a rent free house for a while and some behave kind of badly when they leave but i can understand that. Warren, thank you very much. We have a lot more to talk about this morning. When we come back berkshires foreign investments, the ceos of ibm, cocacola, wells far dpoe and American Express. What they have to say about business the economy and having Warren Buffett as their largest shareholder. Take a deeeeep breath in. And. Exhale. Aflac and a gentle wavelike motion. Ahhh ahhhhhh. Liberate your spine. Ahhhahhhhhh. Aflac and reach, toes blossoming. Not that great at yoga. Yeah, but when i slipped a disk he paid my claim in just one day. Ahh so he had your back . Yep. In just one day, we approve and pay. One day pay, only from aflac. [duck snoring] test test test. Test test test. Test test test. We have some sad news to report this weekend. Survey monkey ceo dave goalberg died at 47. He was the husband of facebook coo sheryl sandberg. Facebook Ceo Mark Zuckerberg posted Dave Goldberg was an amazing person and im glad i got to know. He is survived by his wife and two children and its a terrible terrible story. He was a remarkably genuinely decent person. Literally two weeks ago. He was here on a friday. Two weeks as of friday or not even two weeks. Not even two weeks. We just emailed last week. He thank me for coming on and we had talked about Something Else and great guy. Prince. Its times like that where you realize 47 years old. You think about the family and the kids and sheryl and young kids. Yeah. Ten and seven. Horrible. All right. We will well be back and well go to becky. Talk about some other things. Talk about a huge weekend in sports. 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With a trading specialist just a tap away. Whats on your mind lisa . Id like to talk about a trade idea. Lets hear it. [ male announcer ] see how schwab can help light a way forward. So you can make your move wherever you are. And start working on your next big idea. Welcome back to squawk box, everybody. We are live from omaha, nebraska. The chief executive of Berkshire Hathaway were here over the weekend. Ibms jenny rometti, wells fargo john stump and together they represent over 60 of berkshire berkshires portfolio. I asked what it was like to have Warren Buffett as their big he have shareholder. Hes been with us the longest and he owned 14. 88 . But who is counting and its really fantastic. One of the thing i always talk about is that great leaders are people who capture the hearts and minds, and warren captures your heart and mind because hes so passionate so engaged, so authentic and he wants to win, and so this disarming manner masks this fierce competitor, but hes a real gentleman. Anybody have things to add to that. Weve been very fortunate to have warren not only as our largest share owner since the 80s but also on our board for 17 years. Its been a wonderful journey and it continues unabated and he was at our annual meeting this week on wednesday. Everyone loves him and everyone hes able to simplify complex matters in just a few words and i think thats an incredible asset all the time. You even got him to play the ukele. Well, hes a great ukele player. Were the newest in his portfolio and almost 8 and i have to say, you know having warren, its a wonderful thing to have someone who has got such appreciation for setting a Gold Standard for that style of investing. All of us are brands that are endured decades and decades and decades, and it is great to have an owner who has that view about investing, that you make the right decisions to create value for the long term and you keep moving your own company to higher value and balance that with shareholder return. I would add just what ginni said. I talk to him not often but maybe once a month or so and its generally about very longterm things. I said warren you are 84 years old and hes talking about things ten and 20 years out. He really has longterm views and he understands the core elements of what builds shareholder value over a long term. Its so refreshing because we all have analysts we meet with every quarter, which we also love but equally. Equally. But we really like our long term investors. You know whats really interesting, i think, is warrens long term commitment but the fact that all of our companies have really strong brands, and yet were working with someone who probably has one of the strongest personal brands in the world, and so i think the congruence of having someone who really believes in a very strong reputation and sustainable longterm performance is absolutely critical. Ken, lets touch on this point. You said he has a very strong world brand himself. Is he different from other shareholders . Is it different dealing with him than it is with other people or is it just a perception because we know who he is . I think for me warren has a very unique style. We have a number of different shareholders. I get along with them very well but theres something that is incredibly engaging from the first time i met him. I agree with ken. I find him both inspiring. We learn. And i bet i dont share a sort of unique experience that he asks more questions and it is questions great questions, and whether they are about the long term about competitiveness, and its just you know he listens more than he actually talks, but when he does, you always take away. There is not a meeting i have i dont walk away with a great learning. I agree with ginni and ken. I think there is no one else that i know of that is as keen an observer of trends of people, of countries, of whats going on in the world. Not just in business. But just general trends. And being able to just bring those out in the most simplistic way and articulate those in the most simplistic way and the second piece is the fusion of humor and humility i dont know that of anyone else that is of any stature. Those things when you come here for him to drive you in his own car to a place to eat, and but those are really important things, so you know say, becky, what advice its not just something that comes out of his mouth. Its about his whole attitude about the way he lives and the way he adds value to everybody that hes in touch with. Being picked up by him in his car is a real thrill. He come to the airport. He pick you up and he drives down and you go to the, you know either pickolo petes and he will say what do you Warren Warren will have a usual. Ill have the usual also. I never realized the usual was a tbone steak with a side of fried chicken, mashed potatoes. It is a big plate of food. He loves it. Dont forget the cherry cobbler. He also might take dairy queen. One of things that personifies, you call warren how are you doing . Never been better. That tells you that hes always looking to the future and its informed optimism because this is not someone who is afraid to face reality and to tell you what the deal is because he has a mind like a steel trap but that phrase i think personi fies what warren bawf fet is all about. The thing that struck me the most from hearing from them is that every one of them said it was your long term vision that they appreciated the most. Now, obviously, you are looking at things for the long term. One of the companies that you told me youve been buying more stock in is ibm. You told me that on saturday that in the First Quarter you bought more shares. We will see that coming out in sec filings soon and i just wonder what you see in the long haul for ibm. Because there have been a bunch of people who questioned why you got into that stock right now. What do you see happening over the long haul . I think ten years from now they will be earning a fair amount more money than they are now and i think they will have a fair amount fewer shares and our percentage ownership will be up and i think well make considerable money. I can always be wrong on any stock but thats my best estimate. I felt that way when we started buying it a few years ago. They get a boil shares out then. Our interest has gone up by 15 or so without us laying out a dime in that respect. Its true that they are going through a transition in terms of the products many of the products their customers like but if you looked at those people on that program, wells fargo, American Express is a Huge Customer and my guess is ten years ago from now, that they will be Huge Customers of ibm. They will be selling them Different Things than they are selling them now but they will be solving the problems those companies have at that time and thats my best estimate. I could be wrong. Theres a story from reuters, i think it was last week, just before the meeting came out, questioning the idea of the competitive notes that you look for in companies, questioning whether if they can continue this article pointed out ibm and cocacola in particular. What do you say in response to that snngts. I would say 1. 9 billion eightounce products of your product in the world by 200 countries by people consuming it today and tomorrow i would say thats a pretty strong Competitive Position to be in. If people like something today, they usually like it tomorrow. And usually as their kids come along and more people inhabit the world, they like it. Here we have a product that started in 1886 cocacola and during the war, when they had trouble getting sugar or something of the sort maybe there were declines in consumption. Per cap ita consumption has gone up almost every year. You have to be doing something right. Ketchup, heinz, started up in the 1870s people are still putting it on hot dogs. I dont think something is going to change dramatically tomorrow on that. You have a question too. One of the things you said this goes back to ibm, one of the things you said on saturday was theres been more stupid stuff and stupid stuff written and stupid stuff done when it comes to buying back stock and one of the Big Questions about ibm, of course is how much stock they bought back over the past decade. I know you supported their efforts to continue buying back stock. Do you wish that they had bought back all that stock when the stock was higher . Well i mean obviously, you like to buy every stock at the low tick but that doesnt happen for me. Overall their stock purchase program, it goes back more than a daek its been dramatic and its been enormously beneficial to the sha