0 ford is under pressure after admitting using crack cocaine and having drunken stupors on a regular basis. chris christie made a brief appearances on michael j. fox' sitcom. he played himself making light of a possible presidential bid. he said it was taped a few months ago. anderson, back to you. >> thanks very much. that's all we have for this edition of 360. thanks for joining us. thanks for joining us. "piers morgan live" is up next. -- captions by vitac -- www.vitac.com good evening, warren buffet is a self made man. when he talks, everybody listens. he joins me with his son and grandson for a fascinating and revealing interview. howard g. is the author of "40 chances, finding hope in a hungry world." it's filled with hope and inspiring stories. the three buffets join me now. >> know you warren but maybe not familiar with howard or hwb. give me an assessment how it start id the. >> it started slow. for the first two or three years we were thinking about putting him out for adoption. [ laughter ] >> but he has developed into a terrific human being and i'm proud of him and love backing him and his charitable work, and he's done the same with his son. i feel very good about the children. >> there is a reason that i feel extremely grateful to your son, and i'm going to play you a clip which will explain why this is from the last time i interviewed howard. >> lovely to see you. >> nice to see you. >> i'll get you back one day with your father and maybe your son as well. the three generations of buffets. >> i would love. >> thank you. >> you see, that moment was sealed with the famous buffet hand shake and i knew then i had a deal because howard, the buffet hand shake means a lot, right? >> well, what i've learned growing up in our family is that, you know, integrity is everything, and, you know, everybody makes mistakes but i believe as my dad says, you stick with people, you give people a second chance, and that's the values that we've had in our family, and -- >> i gave him more than a second chance. [ laughter ] >> i think i teed him up for that one. >> fascinating deals you did with your son when he was young. i have three sons. i like the way you think about these things, warren. on the hand shake business, how many men in the world, or women, people you do business with, do you trust personally for a big deal on the strength of a hand shake percentage-wise. >> not that high a percentage but the ones i made deals with, i decided their handshake is good. we do not have contracts with -- we have 70 some companies and some contracts out there. you can't make a good deal with a bad guy. >> regardless -- >> regardless of any piece of paper. they win. they sue you and do all kinds of things. >> do you still prefer to do business with a hand shake? >> yeah, i prefer to do business with people i like. i see no reason to do business that cause my stomach to turn. it's like marrying for money. it's dumb and i think it's really dumb if you're already rich, right? [ laughter ] >> let me ask you h.w. b., what is the single best lesson you've learned? >> my father and grandma father are the most amazing role models anyone could imagine. i've watched my grandfather build what has been one of the greatest fortunes in the world and turned it into history's greatest gifts and empowering my father to go out and change the world and take that opportunity -- >> he's exaggerating -- >> no -- >> don't worry, you're still in the will. >> that's what 40 chances are about, what howard, my dad has been able to do. >> it's a great line you use, warren, you always wanted to give your kids enough money they could do whatever they want to do in life but not enough that they would do nothing. >> they can do anything but not enough to do nothing. >> we got plenty of tweets. one says what's the most important advice that you've had about investing that you would give to others? >> to look at stocks like a business rather than things that bob up and down. you value the business and look at the stock. sometimes people think the stock will go to 100 or go up next week. in the end you're buying part of the business and you should never lose sight of that. >> do you have to personally enjoy the stock that you buy? >> i enjoy the -- i enjoy analyzing stocks, but one thing to remember about stocks is you have all these feelings about them. they don't care about you. you bought the stock at 20 and now it's 18, you know, and you hate it. stock doesn't know. it doesn't know what you paid. it has no feelings about you at all. >> the reason i asked you, when you were young you were selling coca-cola and become a stockholder and when we asked the family what the rider would be for the dressing room requirements, anything coca-cola related. so i thought this man actually drinks this stuff. >> five a day. >> no, here is the other thing i want to do. i'm a blackberry relics. i hang onto the blackberry. it turns out hwb has two. >> yes. >> howard didn't bring a cell phone. >> warren has something i haven't seen since grandfather clock. what is this? >> alexander the great gave me. he's getting a new one. >> how long have you had that one? >> i don't throw anything away until i've had it 20 or 25 years. >> i literally haven't seen one of those since star track came out. >> it's impressive. i can dial people on this. i can't do these other things where it talks about text. >> do you use e-mail? >> i do it through my assistant. i sent one e-mail in my life. >> who to? >> to jeff rakes at microsoft and it ended up in court in minneapolis, so -- [ laughter ] >> so i'm one for one. >> and you still have your old car, is that right? >> well, it's not so old, about six years. >> your not into flash things, are you, really? >> no, i have everything i want. i'm happy. >> let's turn to your son because when i interviewed him nine months ago, we got into some of the deals you did together as father and son which i found absolutely gripping -- >> they are not that gripping. >> they are. they are. howard, you turned your backyard into a little farm and you wanted to do a deal with your dad about the rental. explain to me what the deal was. >> actually, that was on 400 acres that hwb farms now and the deal was that the rent amount would be based on my weight. >> this was not a brilliant moment in paradise. >> what were you thinking? it was literally paid if you put on weight, the rent went up and if you reduced your weight, the rent went down. >> i started feeding him candy and pie skpand unfortunately, i kept paying the higher rate. >> it didn't work? >> not really. >> there was an incentive scheme on a car you wanted as a gift. you wanted the money for it. tell me about that because it did work. >> i knew when i graduated from high school i really wanted a car. i went to my dad. this was at the beginning of high school. i said for the next three years if i don't get a birthday present or christmas present, can i get a car? he said he would give me $5,000. back then that was a lot of money. >> still is. [ laughter ] >> see the problem i deal with. it's a big problem. >> look after the pennies, the cows look after themselves. >> and so when i graduated i had $5,000 and i had a summer job so i earned another $2300 and i bought a new car with it. i thought it was a good deal. >> warren, you stuck riggedly with the terms of the deal. >> yeah. >> two insintives, one worked one didn't. do you regret the weight incentive you laid down? >> i would say it was dumb. we're stimtall talking about it today. >> howard, do you lay it down on hwb? does he have the same criteria? >> i don't think i've ever done that. sometimes i would tell him he's going on a trip to some country he didn't want to go to. i figured that was educational. i don't think i've ever done that. >> warren, all three of your children went to public school. >> that's true. >> all three of them dropped out of college. >> right. >> you didn't seem too phased, why. >> if they combine their credits, we can get one degree. >> they know we'll argue who gets it. >> i didn't want to go to college myself. my dad talked me into it. i think my kids got a wonderful education in public school. they went to the same school that their grandfather did, their mother, it's a school of inner city between 20 and 25% black for 75 years. they saw the real world, and they saw what america is all about. i think it's a great education. >> what were the key messages that you wanted to send to your children, which i guess you've passed down, as well, to deal with the fact that there was enormous wealth in the family almost from when they were born? >> they never felt it was going to be pasted on to create a dine nesty. i always felt we would love wonderful and the rest would go back to society and that's been the plan since my 20s. >> he hid it for a long time. he didn't know it. laugh will have. >> was he -- i don't want to use the word mean but was he a little tight fisted, howard, from the way you painted the picture? >> no, you painted it that way. >> dang it, you got me. >> were you taught to be too material list tick? >> that's an observation. one of the biggest thinks you learn is what you observe. i had two incredible parents. my mom was the host giving person in the world. what i got from my dad was something very unique, i used o eavesdrop on his business calls and who was running for mayor -- >> that must have been fascinating. you could only hear one side of the call. >> you can figure out what is going on. >> i prefer him to hear one side. >> is it true you like to do business on the phone? >> sure, sure. >> endless phone call, power broking? >> yeah, and they don't take long. we made the decision to buy the burlington northern santa fe railroad. i was down there on a thursday and i said to a few people can i offer them a few hundred dollars a share? >> how much did you pay? >> 34 billion. >> and he's worried about $5,000. >> watch the pennies. >> that is fascinating. you must have unbelievable self-belief to make that deal in hours. >> if i'm operating in my circle of competence. there is things i don't know how to do but i do feel i know a certain area and that was not a problem making that decision. >> do you ever make big mistakes? >> sure, sure. >> what's the biggest? what's the one you look back and say i shouldn't have done that. >> i bought a company in the '90s called dexter shoe. i gave 400 million worth of stock probably worth 4 billion. every time brooke shire goes up it costs me more. i've made lots of dumb decisions. that's part of the game. >> i would love to make dumb decisions that went wrong like that. when we come back we'll talk about the woman you mentioned, your mother, your wife. the impact. many say the brains behind the power. would you agree with that, warren? >> i would agree. >> we'll discuss that after the break. customer erin swenson ordered shoes from us online but they didn't fit. customer's not happy, i'm not happy. sales go down, i'm not happy. merch comes back, i'm not happy. use ups. they make returns easy. unhappy customer becomes happy customer. then, repeat customer. easy returns, i'm happy. repeat customers, i'm happy. sales go up, i'm happy. i ordered another pair. i'm happy. 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[ laughter ] >> warren buffet's first wife susan back in 2003, her first and only interview. an inspiration for the entire family. i have three of them with we, warren buffet and his son and grandson. howard, you said earlier your mother was an extraordinary figure in all your lives. tell me why. >> she did something you heard my dad saying, she provided unconditional love to all three of us. she add incredible patience with me, which was a requirement, i think, to keep me in line and out of trouble and she cared about everybody. i mean, there was nobody that would meet her that didn't connect with her and feel a passion and a warmth from her and she really taught us how to care about other people and how important it is to threat every human being equally. >> my favorite story in the book, you go around the world doing extraordinary work with the foundation, a lot of it financed by your dad -- >> all of it. >> and it's amazing work that you do and we'll come to this. my favorite story is the time that your mother very unusually for her decided had enough of you. locks you away in your bedroom. most kids in that position, and i've been in that position you sit there sulking and eventually allowed back into the community. not you, howard, what did you do? >> i had a row of windows in my room and, you know, i opened a window open. we had a greenhouse so i had to be careful climbing out because i didn't want to go through the glass. i got down and we had a charge account at the local hardware store and i went there and convinced the guy to let me charge a hash block and a tool. i got everything i needed. i crawled back in and i locked her out. [ laughter ] >> you changed the lock on your bedroom door so she couldn't get back in. >> i put a hasp lock. >> he was the mhanabil lector. >> how did your mother react? >> she probably got a kick out of it. she was a little irritated when she couldn't get back in. >> what do you make of a son with such devil lish mastermind capabilities? >> it was a worry for awhile. as i mentioned in the book, we had howy, who was the second child quite soon after the first child but after we had him we decided to call a halt. i should mention that interview incidentally, my wife had just had oral cancer and it impeded her speech but -- >> tell me about susan. because she was obviously this huge great love of your life, and an amazing mother and wife. tell me about that. >> i was a mess when she met me, and matter of fact, in another part of that interview, she said what was her first impression of me and she said what a jerk. fortunately, she looked at me as a challenge, maybe preparing her for howy and put me together. it was -- it changed my life. >> when you say put you together, in what way for the good? how did you change? >> i slowly grew up, and i wouldn't have otherwise. i was -- i just -- i wasn't feeling good about the world or myself, and she just stood there with a little watering can and just sprinkled and planted the plower and bloom. >> many great businessmen are incapable of real love or even real emotion sometimes. they get so absorbed in business. many people who don't know, i guess, may assume you're one of those characters but from what the family told me and what i read in a great buy buy ogden f- >> it's wonderful to love and wonderful to be loved. >> let's talk to you hwb about this. you had these extra ordinary figures in your life, extraordinary father here, grandfather, grandmother, others. tell me what it is like growing up in this kind of family. >> to be frank, it's been normal in the sense that we grew up in a normal house. we grew up with normal cars and we grew up being told that there was nothing different about us than anybody around us. so that i think really help grounded us and who we've all become as part of this family. but having these values, that have been so clearly -- i've seen at least stepping back passed down from my grandfather tore my father in the way they do their work in their own unique way is for me to observe and sit back and draw from as much as possible in watching the way they have been successful. >> warren, what are the key values you would like to see other people recognize in your children, your grand children, family, extended family. >> i want them to be good citizens, parents and the world to be better off because they were there. >> what else? i know you think a great rule in vesting is character, important, not getting into debt, character, integrity, what is your definition? >> i'm not sure i can get a great one. i know it when i see it and i know when it exists around me, and i feel good about all three of my children. it wasn't always that way. [ laughter ] >> it's been work in progress. >> there are a few years there -- but they felt the same way about me, i'm sure. >> the second most important piece of advice i've been given is surround you self-with people that have greater integrity than you have -- >> greater intelligence. >> greater intelligence, of course. that's easy. >> exactly. >> has it been hard, howard, growing up with that sir name? >> well, i'll tell you this, there is a lot more benefits to it than -- you know, i mean, and so -- you know, you get frustrated. i'll tell you, when you're younger growing up with it it was frustrating. today it is a huge advantage. you have to make sure you're responsible about it. i never felt much different as howy said. growing up in the house we grew up and neighborhood we grew up in, i didn't feel any different than i think anybody else felt. >> we've been in the same house now for 55 years. >> the famous house. >> absolutely. we've got terrific neighbors, you know, nancy brings over cherry pies. my wife loves -- >> do you ever go buy a liter of milk