1 00:00:03,080 --> 00:00:07,680 Speaker 1: Broadcasting live to New York, Gloomberg to Washington, d C. 2 00:00:07,920 --> 00:00:13,160 Speaker 1: Bloomberg to Boston, Bloomberg twelve hundreds, to San Francisco, Bloomberg 3 00:00:13,240 --> 00:00:16,760 Speaker 1: nine six, to the Country Series Exam Channel one ninety 4 00:00:17,000 --> 00:00:20,439 Speaker 1: and around the globe. The Bloomberg Radio must happen. Bloomberg 5 00:00:20,520 --> 00:00:25,279 Speaker 1: dot com. This is Bloomberg Surveillance. Good morning. It is 6 00:00:25,320 --> 00:00:27,720 Speaker 1: seven thirty on Wall Street Time. Michael McKee along with 7 00:00:27,800 --> 00:00:30,800 Speaker 1: David Garrett today sitting in for Tom Keene. We are 8 00:00:31,320 --> 00:00:35,920 Speaker 1: waiting on earnings from Exxon Mobile and Chevron. No surprise 9 00:00:36,040 --> 00:00:41,160 Speaker 1: that they are likely to have seen their earnings shrink. 10 00:00:41,240 --> 00:00:44,320 Speaker 1: Phillip sixty six did posting a sixty one percent drop 11 00:00:44,320 --> 00:00:48,080 Speaker 1: in first quarter earnings, profit margins for refining and chemicals 12 00:00:48,080 --> 00:00:52,320 Speaker 1: production shrinking, net income three five million dollars seventy two 13 00:00:52,360 --> 00:00:55,320 Speaker 1: cents a share, down from nine hundred eighty seven million 14 00:00:55,640 --> 00:00:59,920 Speaker 1: dollar seventy nine a year earlier. Emine News Rob, which 15 00:01:00,040 --> 00:01:03,360 Speaker 1: provides on screen guides for pay TV listings, agreeing to 16 00:01:03,440 --> 00:01:07,280 Speaker 1: buy that digital video recording pioneer ti Vo. The deal 17 00:01:07,400 --> 00:01:09,880 Speaker 1: valued at one point one billion ro gonna pay ten 18 00:01:09,920 --> 00:01:12,520 Speaker 1: point ten dollars and seventy cents per sharing cash and 19 00:01:12,640 --> 00:01:15,640 Speaker 1: stock and RBS Royal Bank of Scotland a deeper first 20 00:01:15,680 --> 00:01:18,720 Speaker 1: quarter loss, repaying the UK government for support during the 21 00:01:18,760 --> 00:01:21,200 Speaker 1: financial crisis. Also says it's going to take longer than 22 00:01:21,240 --> 00:01:25,000 Speaker 1: expected to resume dividends. The net loss seven sixty eight 23 00:01:25,000 --> 00:01:27,920 Speaker 1: million pounds or one point four billion dollars, just about 24 00:01:28,040 --> 00:01:32,280 Speaker 1: double the loss a year earlier. Now, let's check in 25 00:01:32,400 --> 00:01:36,040 Speaker 1: with Michael Barr and get the latest world and national headlines. Michael, Mike, 26 00:01:36,040 --> 00:01:39,000 Speaker 1: thank you very much. Fighting continues in the Syrian city 27 00:01:39,000 --> 00:01:42,840 Speaker 1: of Aleppo. Witnesses say government air strikes destroyed the hospital 28 00:01:42,880 --> 00:01:45,440 Speaker 1: and the insurgent held its side of the city. At 29 00:01:45,520 --> 00:01:48,120 Speaker 1: least twenty seven people were killed in that incident, including 30 00:01:48,200 --> 00:01:52,240 Speaker 1: children and hospital staffers. US Secretary of State John Kerry 31 00:01:52,280 --> 00:01:56,360 Speaker 1: says he is outraged. North Korea has sentenced another American 32 00:01:56,440 --> 00:01:59,520 Speaker 1: to hard labor in prison. Kim Don Cholab was sentenced 33 00:01:59,520 --> 00:02:03,480 Speaker 1: today to ten years for spine. Officials say a suspicious 34 00:02:03,520 --> 00:02:07,360 Speaker 1: white powdery substance sent to a Donald Trump campaign office 35 00:02:07,360 --> 00:02:10,720 Speaker 1: in New York is harmless. Please say. The envelope was 36 00:02:10,760 --> 00:02:14,280 Speaker 1: opened by a staffer at Manhattan's Trump Tower. Vice President 37 00:02:14,360 --> 00:02:18,080 Speaker 1: Joe Biden will push to accelerate international cancer research during 38 00:02:18,080 --> 00:02:21,680 Speaker 1: a speech to a conference on regenerative medicine in Rome. 39 00:02:22,120 --> 00:02:25,639 Speaker 1: While in Vannikan City, biden As schedule to see Pope Francis, 40 00:02:25,760 --> 00:02:29,240 Speaker 1: who will also speak at the conference. Global News twenty 41 00:02:29,240 --> 00:02:32,400 Speaker 1: four hours a day, powered by our twenty four hundred 42 00:02:32,440 --> 00:02:35,080 Speaker 1: journalists and more than a hundred fifty news bureaus from 43 00:02:35,120 --> 00:02:39,000 Speaker 1: around the world. I'm Michael Barr, Mike David. Thank you, Michael. 44 00:02:39,200 --> 00:02:43,720 Speaker 1: Time now for the Bloomberg NBC Sports Update. Here's John Stasha. Alright, Mike, 45 00:02:43,800 --> 00:02:46,560 Speaker 1: there's a reason why Ohio State won a national championship 46 00:02:46,600 --> 00:02:49,400 Speaker 1: of the season was heavily favored to win again. Five 47 00:02:49,520 --> 00:02:52,120 Speaker 1: Buckeyes taken last night first round of the NFL Draft, 48 00:02:52,160 --> 00:02:54,160 Speaker 1: and two of them are headed to New York. The 49 00:02:54,200 --> 00:02:57,120 Speaker 1: Giants with the tenth pick took a cornerback Eli Apple, 50 00:02:57,600 --> 00:02:59,880 Speaker 1: coming to the Big Apple's only twenty years old. He's 51 00:03:00,000 --> 00:03:02,919 Speaker 1: I'm Voorhees New Jersey Giants, if nothing else, lead the 52 00:03:03,040 --> 00:03:05,840 Speaker 1: NFL and players named Eli. The Jets with the twenty 53 00:03:06,000 --> 00:03:09,160 Speaker 1: pick took Ohio State linebacker Darren Lee, whose stock went 54 00:03:09,240 --> 00:03:12,000 Speaker 1: up with an impressive workout at the scouting Combine. Seventh 55 00:03:12,080 --> 00:03:13,920 Speaker 1: year in a row. The Jets have gone defense in 56 00:03:13,919 --> 00:03:16,880 Speaker 1: the first round. As expected, quarterbacks went won two. Both 57 00:03:16,880 --> 00:03:19,040 Speaker 1: the Rams and Eagles had made trades to move up 58 00:03:19,240 --> 00:03:22,400 Speaker 1: Cal's Jared Goff to Los Angeles, Carson Wentz to North 59 00:03:22,440 --> 00:03:26,040 Speaker 1: Dakota State to Philadelphia. Another GB Paxton Lynch to Memphis 60 00:03:26,040 --> 00:03:29,320 Speaker 1: taken by Denver. Lanta Hawks. Moving on the NBA playoffs, 61 00:03:29,320 --> 00:03:31,320 Speaker 1: they put six and double figures. They won one oh 62 00:03:31,360 --> 00:03:33,480 Speaker 1: four ninety two at Boston. They win the series in 63 00:03:33,520 --> 00:03:36,840 Speaker 1: six games. Atlanta will now play Cleveland over time to 64 00:03:36,880 --> 00:03:39,480 Speaker 1: start the Stanley Cup Series in Washington. T j Osce 65 00:03:39,960 --> 00:03:42,320 Speaker 1: finished the hat trick, scoring inn ot the Caps top 66 00:03:42,320 --> 00:03:45,440 Speaker 1: Pittsburgh four to three. D Gordon, the Miami Marlins, who 67 00:03:45,480 --> 00:03:48,440 Speaker 1: led the NASH League and hitting last season, suspended eighty 68 00:03:48,560 --> 00:03:51,440 Speaker 1: games for using p E D s. With the Bloomberg 69 00:03:51,520 --> 00:03:55,120 Speaker 1: NBC Sports update of John stash Allar, thank you John, 70 00:03:55,320 --> 00:03:59,840 Speaker 1: We're seeing US futures deteriorate even more now, s ANDP 71 00:04:00,000 --> 00:04:03,080 Speaker 1: futures down by four points, two tenths of a percent, down, 72 00:04:03,240 --> 00:04:06,200 Speaker 1: futures down one a tenth of a percent, and as 73 00:04:06,280 --> 00:04:09,480 Speaker 1: DA GIMNI futures off sixteen points. Right now, they are 74 00:04:09,760 --> 00:04:13,800 Speaker 1: down four tenths of a percent. This is Bloomberg Surveillance 75 00:04:13,840 --> 00:04:21,840 Speaker 1: on Bloomberg Radio. I'm Michael mckety along with David Gura, 76 00:04:21,960 --> 00:04:25,159 Speaker 1: sitting in for Tom Keane here on Bloomberg Surveillance. We 77 00:04:25,240 --> 00:04:28,480 Speaker 1: are watching the markets try to figure out how they 78 00:04:28,520 --> 00:04:30,960 Speaker 1: could go higher on Friday and failing to do it. 79 00:04:31,000 --> 00:04:33,680 Speaker 1: But we do have a little bit of news from Valiant. 80 00:04:33,920 --> 00:04:38,839 Speaker 1: You remember they promised to file their paperwork as required 81 00:04:38,960 --> 00:04:40,800 Speaker 1: by the SEC by the end of the month. They 82 00:04:40,800 --> 00:04:44,160 Speaker 1: have done so, filing their annual ten K form or 83 00:04:44,279 --> 00:04:46,599 Speaker 1: filing their tin K form. I should say, uh. And 84 00:04:46,640 --> 00:04:50,400 Speaker 1: they now say they are in full compliance with credit 85 00:04:50,440 --> 00:04:54,640 Speaker 1: agreements that required them to do that. So Valiant, I 86 00:04:54,680 --> 00:04:58,279 Speaker 1: guess suggesting they are not going to be breaking any 87 00:04:58,320 --> 00:05:04,080 Speaker 1: covenants and uh cause any technical defaults. Time now for 88 00:05:04,279 --> 00:05:07,520 Speaker 1: the Bloomberg n j I T STEM Report. New Jersey 89 00:05:07,560 --> 00:05:10,320 Speaker 1: Institute of Technology investing more than a hundred and ten 90 00:05:10,360 --> 00:05:12,600 Speaker 1: million dollars a year in the applied and applied research 91 00:05:12,880 --> 00:05:15,279 Speaker 1: to solve problems that improve life. Learn more at Stories 92 00:05:15,320 --> 00:05:18,480 Speaker 1: of Innovation dot m j I T dot edu. Here's 93 00:05:18,520 --> 00:05:21,640 Speaker 1: David Gura. Chrysler is said to be nearing a technology 94 00:05:21,640 --> 00:05:23,960 Speaker 1: deal with Google. According to people familiar with the matter, 95 00:05:24,000 --> 00:05:26,720 Speaker 1: the division of Alphabet is in late stage discussions to 96 00:05:26,760 --> 00:05:30,080 Speaker 1: form a technology partnership with Fiat. Google has been talking 97 00:05:30,080 --> 00:05:33,080 Speaker 1: to several carmakers about working together to deploy its driverless 98 00:05:33,120 --> 00:05:37,080 Speaker 1: technology and vehicles made by an established manufacturer. According to people, 99 00:05:37,120 --> 00:05:41,120 Speaker 1: Fiat CEO Sergio Marcioni has been directly involved in the talks. 100 00:05:41,400 --> 00:05:43,320 Speaker 1: In a conference called Tuesday, he said he hopes to 101 00:05:43,360 --> 00:05:47,360 Speaker 1: announce an arrangement with a technology company this year. Paypals 102 00:05:47,400 --> 00:05:50,359 Speaker 1: as the Federal Trade Commission is investigating the company's Venmo 103 00:05:50,520 --> 00:05:53,840 Speaker 1: free peer to peer payment service in connection with potential 104 00:05:53,920 --> 00:05:57,200 Speaker 1: unfair trade practices. The company says the probe focuses on 105 00:05:57,200 --> 00:06:01,000 Speaker 1: whether the electronic payments company engaged in unfair or deceptive 106 00:06:01,000 --> 00:06:05,040 Speaker 1: trade practices. Papal says it's coordinating with whether it's cooperating 107 00:06:05,080 --> 00:06:07,839 Speaker 1: with the FTC, but declined to give further details about 108 00:06:07,880 --> 00:06:09,839 Speaker 1: the probe. And that is this morning's Bloomberg n j 109 00:06:09,960 --> 00:06:12,960 Speaker 1: I T STEM Report. Mike, thank you very much. David 110 00:06:13,040 --> 00:06:16,400 Speaker 1: Well joining us now as David Winters. He's the CEO 111 00:06:16,440 --> 00:06:21,000 Speaker 1: of Winter Green Advisors, and he's got weekend plans. Um 112 00:06:21,520 --> 00:06:24,480 Speaker 1: I wasn't invited to Warren Buffett's annual dube. It's a 113 00:06:24,560 --> 00:06:27,040 Speaker 1: small admissions feed. David, I guess we'll be going out 114 00:06:27,080 --> 00:06:31,040 Speaker 1: to Omaha for the annual meeting of Berkshire Hathaway, which 115 00:06:31,120 --> 00:06:34,840 Speaker 1: is uh one of the bigger celebrations of capitalism in 116 00:06:34,920 --> 00:06:38,920 Speaker 1: the country each year, although it has been attracting more 117 00:06:38,960 --> 00:06:42,440 Speaker 1: and more activist investors who are less interested in celebrating 118 00:06:42,480 --> 00:06:44,440 Speaker 1: than making some waves. And David, I don't know if 119 00:06:44,880 --> 00:06:48,400 Speaker 1: you would would you classify yourself as an activist investor? 120 00:06:48,440 --> 00:06:51,000 Speaker 1: You do have some waves you'd like to make well, 121 00:06:51,160 --> 00:06:54,279 Speaker 1: you know, Michael and David, good morning. Um. You know, 122 00:06:54,480 --> 00:06:57,840 Speaker 1: in general, Wintergreen is a long term investor. I think 123 00:06:57,880 --> 00:06:59,880 Speaker 1: this is a twenty six year in a row. We 124 00:07:00,000 --> 00:07:05,080 Speaker 1: have intended the Berkshire Hathaway meeting, UM, and you know, 125 00:07:05,160 --> 00:07:09,279 Speaker 1: we we view active management and you know, taking our 126 00:07:09,279 --> 00:07:13,680 Speaker 1: fiduciary duty for our clients first seriously. And UM. It 127 00:07:13,840 --> 00:07:16,120 Speaker 1: was I think about two years ago we read the 128 00:07:16,160 --> 00:07:20,760 Speaker 1: Coca Cola proxy and we realized there was an egregious 129 00:07:20,800 --> 00:07:26,880 Speaker 1: compensation plan and we objected and ultimately, uh, we're able 130 00:07:26,920 --> 00:07:30,600 Speaker 1: to get that plan rolled back and on our calculations, 131 00:07:30,640 --> 00:07:35,160 Speaker 1: it's been a massive savings to the Cheryl All shareholders 132 00:07:35,200 --> 00:07:39,560 Speaker 1: of Coke. So you know, we're we're reluctant activists, were 133 00:07:39,640 --> 00:07:42,120 Speaker 1: ones who do it because we find we have to. 134 00:07:42,280 --> 00:07:45,240 Speaker 1: We we would prefer to make just long term quiet investments. 135 00:07:45,640 --> 00:07:48,920 Speaker 1: What what is this meeting like for an activist investor? 136 00:07:48,960 --> 00:07:51,560 Speaker 1: We read this year that the event is going to 137 00:07:51,600 --> 00:07:54,400 Speaker 1: be live streamed by Yahoo Finance for the first time. 138 00:07:54,400 --> 00:07:56,000 Speaker 1: You're gonna be able to watch it online. You don't 139 00:07:56,040 --> 00:07:59,200 Speaker 1: have to be there in the arena in Omaha. How 140 00:07:59,280 --> 00:08:00,720 Speaker 1: much you say to how much of it say do 141 00:08:00,760 --> 00:08:03,360 Speaker 1: you have? How much you know, how much excitement is there, 142 00:08:03,400 --> 00:08:05,440 Speaker 1: how much nitty gritty is there actually at this kind 143 00:08:05,440 --> 00:08:08,400 Speaker 1: of meeting. Well, you know, the meeting has you know, 144 00:08:08,440 --> 00:08:10,520 Speaker 1: for many years been a lot of fun for many 145 00:08:10,560 --> 00:08:14,560 Speaker 1: people and an opportunity to learn and you know, see friends. Um. 146 00:08:14,560 --> 00:08:16,880 Speaker 1: And over time it's become you know, almost you know, 147 00:08:16,960 --> 00:08:21,400 Speaker 1: forty people give or take and so it's it's changed, 148 00:08:22,040 --> 00:08:27,440 Speaker 1: um and um. But it's uh, you know, it's really 149 00:08:27,480 --> 00:08:34,000 Speaker 1: an opportunity to um, you know, it's an opportunity for 150 00:08:34,040 --> 00:08:37,160 Speaker 1: people really to to learn from Warren Buffett and uh 151 00:08:37,200 --> 00:08:39,440 Speaker 1: and try to have a lot of fun. Do you 152 00:08:39,520 --> 00:08:41,600 Speaker 1: really learn a whole lot from him? I mean, I 153 00:08:41,640 --> 00:08:44,080 Speaker 1: wonder if it's become a little bit like Davos and 154 00:08:44,320 --> 00:08:47,160 Speaker 1: jumping the shark and becoming more about being there than 155 00:08:47,200 --> 00:08:50,520 Speaker 1: actually the reason you would be there. I was being 156 00:08:50,600 --> 00:08:53,240 Speaker 1: very polite. You are accurate, sir. This is this is 157 00:08:53,280 --> 00:08:55,640 Speaker 1: in fact the learning component. I mean I think in 158 00:08:55,679 --> 00:08:58,120 Speaker 1: the early years was very high. And this has become 159 00:08:58,160 --> 00:09:01,439 Speaker 1: more of a sort of a social event. And um, 160 00:09:02,040 --> 00:09:05,320 Speaker 1: you know it's it doesn't have the same quality. It's 161 00:09:05,360 --> 00:09:08,520 Speaker 1: it's kind of a jamboree at this point as opposed 162 00:09:08,559 --> 00:09:12,319 Speaker 1: to um, and it's you know, it's more scripted, and 163 00:09:12,440 --> 00:09:16,200 Speaker 1: you know, their teleprompters and you know, the questions are 164 00:09:16,360 --> 00:09:19,600 Speaker 1: are vetted, um, even though I think they say they're not. 165 00:09:20,360 --> 00:09:24,600 Speaker 1: We we've experienced that. Um. You know the Coca Cola 166 00:09:24,720 --> 00:09:28,200 Speaker 1: questions two years ago was the first question and we 167 00:09:28,240 --> 00:09:31,160 Speaker 1: didn't ask it. So you know, it's an interesting thing, 168 00:09:31,200 --> 00:09:34,600 Speaker 1: it's an interesting event. Um. But I think this sort 169 00:09:34,640 --> 00:09:36,720 Speaker 1: of sizzle has begin to go out of the stake. 170 00:09:37,320 --> 00:09:40,040 Speaker 1: About five seconds left here, talk a bit about this 171 00:09:40,080 --> 00:09:42,240 Speaker 1: company where it's at now. I know it's focusing more 172 00:09:42,679 --> 00:09:45,800 Speaker 1: on manufacturing. How has it changed since you first invested 173 00:09:45,800 --> 00:09:48,040 Speaker 1: in it. Well, you know Bercher Has it was a 174 00:09:48,040 --> 00:09:53,120 Speaker 1: relatively small, obscure company that's become enormous. This huge conglomerate 175 00:09:53,320 --> 00:09:56,760 Speaker 1: um for many very difficult kind of figure out what's 176 00:09:56,800 --> 00:10:01,000 Speaker 1: going on. It's disparate, it's got some qualities of a 177 00:10:01,160 --> 00:10:07,000 Speaker 1: of a large black box because there's so many moving pieces. Um, 178 00:10:07,040 --> 00:10:09,760 Speaker 1: you know, it's a conglomerate with anything from a railroad 179 00:10:09,840 --> 00:10:14,120 Speaker 1: to you know, paint company. So it's it's it's almost 180 00:10:14,640 --> 00:10:18,319 Speaker 1: a collection at this point as opposed to you know, 181 00:10:18,360 --> 00:10:21,880 Speaker 1: a conventional business. And then the fact that it's controlled 182 00:10:21,880 --> 00:10:24,400 Speaker 1: and is going to end up in a foundation and 183 00:10:24,480 --> 00:10:26,720 Speaker 1: you've got the fellow running and sat five years old, 184 00:10:26,760 --> 00:10:28,880 Speaker 1: and it's no one knows who's going to run it next. 185 00:10:29,679 --> 00:10:35,000 Speaker 1: You know, it creates uncertainty, and so you know it's 186 00:10:35,000 --> 00:10:39,360 Speaker 1: a cash rich company, but it's it's hard for people 187 00:10:39,400 --> 00:10:42,640 Speaker 1: to really get their heads around. Well, let's continue our 188 00:10:43,000 --> 00:10:47,199 Speaker 1: discussion with David Winters from winter Green Advisors when we 189 00:10:47,280 --> 00:10:55,640 Speaker 1: come back here. Virtue Hathaway shares closing yesterday two a share, 190 00:10:55,720 --> 00:11:02,480 Speaker 1: so a steep admissions price coming up on Bloomberg surveillance. 191 00:11:02,480 --> 00:11:05,000 Speaker 1: We await those earnings from Chevron and x And as 192 00:11:05,040 --> 00:11:07,640 Speaker 1: we see the price of oil here up about three 193 00:11:07,679 --> 00:11:10,240 Speaker 1: four percent at forty six done. That's w t I. 194 00:11:10,559 --> 00:11:12,280 Speaker 1: Let's see what we're gonna hear from those earnings. There 195 00:11:12,400 --> 00:11:14,840 Speaker 1: we heard just from Phillips sixty six more bloom surveillance 196 00:11:14,880 --> 00:11:20,240 Speaker 1: in Gloomboo Business News twenty four hours a day, at 197 00:11:20,240 --> 00:11:23,880 Speaker 1: Bloomberg dot com, the radio plus mobile and on your radio. 198 00:11:24,200 --> 00:11:27,320 Speaker 1: This is a Bloomberg Business Flash and good morning. I'm 199 00:11:27,400 --> 00:11:29,880 Speaker 1: John Tucker. This at Bloomberg Business Flash and being daunted 200 00:11:29,920 --> 00:11:33,959 Speaker 1: by weather tech, car mats and floor liners. The Euro 201 00:11:34,040 --> 00:11:37,440 Speaker 1: Area inflation rate felt to linus to point two percent 202 00:11:37,679 --> 00:11:40,120 Speaker 1: in April, worse than expected. On the good side, the 203 00:11:40,120 --> 00:11:42,679 Speaker 1: economy expanded six tenths of percent at the first quarter. 204 00:11:43,080 --> 00:11:46,600 Speaker 1: Unemployment also declined a March to the lowest since two 205 00:11:46,640 --> 00:11:49,920 Speaker 1: thousand eleven. The US dollar headed for its lowest close 206 00:11:49,960 --> 00:11:52,360 Speaker 1: in almost a year, signs of slowing growth in the 207 00:11:52,440 --> 00:11:57,959 Speaker 1: US of dimmed prospects both couples interstreat increase and SOCC index. 208 00:11:58,000 --> 00:12:01,040 Speaker 1: If you's little changed at this point. Amazon dot Com 209 00:12:01,120 --> 00:12:05,200 Speaker 1: surging in the pre markets after posting better than estivated results. 210 00:12:05,480 --> 00:12:09,960 Speaker 1: Gilligan scienceists Uh, that's lower after first quarter profit missed estimates, 211 00:12:10,440 --> 00:12:14,480 Speaker 1: lower than expected sales of its hepatitis C the treatments. 212 00:12:14,800 --> 00:12:17,800 Speaker 1: Investors will be looking to date on personal income and spending, 213 00:12:18,040 --> 00:12:20,880 Speaker 1: as well as consumer sentiment today and as we check 214 00:12:20,960 --> 00:12:25,560 Speaker 1: futures right now, relatively flat, tow unchanged, and we checked 215 00:12:25,559 --> 00:12:27,800 Speaker 1: the markets for you every fifteen minutes, said during the 216 00:12:27,840 --> 00:12:32,800 Speaker 1: trading day right here Bloomberg Radio, Mike and David, all right, 217 00:12:32,800 --> 00:12:36,520 Speaker 1: thank you very much for for that. John Tucker valiant 218 00:12:36,559 --> 00:12:40,440 Speaker 1: we mentioned a minute ago, uh filing it's ten k 219 00:12:40,600 --> 00:12:45,360 Speaker 1: also now getting subpoenas they say, from the States of 220 00:12:45,440 --> 00:12:50,760 Speaker 1: North Carolina and from Los Angeles from the SEC office 221 00:12:50,800 --> 00:12:53,079 Speaker 1: in Los Angeles. So the trouble's not done there, David. 222 00:12:53,840 --> 00:12:56,680 Speaker 1: As the new CEO takes over here on Monday next week, 223 00:12:56,880 --> 00:12:59,720 Speaker 1: something to to watch throughout the day if you're looking 224 00:12:59,760 --> 00:13:03,880 Speaker 1: for US stock that maybe of interest people watching Berkshire 225 00:13:03,920 --> 00:13:06,760 Speaker 1: Hathaway stock. As Warren Buffett gets ready for his big 226 00:13:06,840 --> 00:13:11,640 Speaker 1: sware out in Omaha this weekend. Attending the meeting will 227 00:13:11,640 --> 00:13:15,400 Speaker 1: be David Winters. He's the CEO of Wintergreen Advisors. I 228 00:13:15,440 --> 00:13:18,480 Speaker 1: want to follow up on the David's question just before 229 00:13:18,480 --> 00:13:21,880 Speaker 1: the break about Virture Hathaway and once you learn from 230 00:13:23,040 --> 00:13:26,600 Speaker 1: Warren Buffett. And I wonder if Warren Buffett uh still 231 00:13:26,679 --> 00:13:29,000 Speaker 1: has I mean obviously people will be there, but still 232 00:13:29,040 --> 00:13:31,400 Speaker 1: has the cash a that he had now that he's 233 00:13:31,440 --> 00:13:34,280 Speaker 1: become so ubiquitous. I mean he's on TV a lot, 234 00:13:34,320 --> 00:13:36,520 Speaker 1: he's talking a lot. At one point he was the 235 00:13:36,559 --> 00:13:39,880 Speaker 1: oracle of Omaha, and nobody would really hear from him 236 00:13:39,960 --> 00:13:41,520 Speaker 1: except for a couple of times a year. We all 237 00:13:41,559 --> 00:13:43,719 Speaker 1: waited on his letters. But now his letters come out 238 00:13:43,760 --> 00:13:47,560 Speaker 1: and people kind of have an idea that they know 239 00:13:47,600 --> 00:13:51,480 Speaker 1: what he's talking about. Well, you know, again, you guys 240 00:13:51,480 --> 00:13:55,600 Speaker 1: are right on. There's you know, there's sort of a 241 00:13:56,200 --> 00:13:59,000 Speaker 1: there was an exclusivity to all us years ago when 242 00:13:59,000 --> 00:14:00,960 Speaker 1: they were a very small group of people who would 243 00:14:01,040 --> 00:14:03,360 Speaker 1: come and you know you had to go right away 244 00:14:03,440 --> 00:14:06,560 Speaker 1: or get sent the annual. And you know, there's a 245 00:14:06,600 --> 00:14:10,839 Speaker 1: celebrity factor here which has sort of changed the dynamic. 246 00:14:11,440 --> 00:14:14,319 Speaker 1: And a lot of what's you know, been disclosed is 247 00:14:14,360 --> 00:14:18,400 Speaker 1: already out there. So I think I think the tone 248 00:14:18,440 --> 00:14:22,200 Speaker 1: of the meeting has changed. And um, you know it's 249 00:14:23,240 --> 00:14:26,400 Speaker 1: it's not you know, from our perspective, it's interesting and 250 00:14:26,440 --> 00:14:29,440 Speaker 1: you know it's interesting from a social perspective, but it's 251 00:14:29,480 --> 00:14:32,840 Speaker 1: not as as profound as it once was. Let me 252 00:14:32,880 --> 00:14:37,080 Speaker 1: ask you about you know, but I don't have to 253 00:14:37,080 --> 00:14:39,080 Speaker 1: be around the bush here. He's getting older, he's eighty five. 254 00:14:39,120 --> 00:14:41,680 Speaker 1: I believe you've got Charlie Munger, who's who's ninety two. 255 00:14:42,640 --> 00:14:45,280 Speaker 1: I imagine that the the the conversation, at least on 256 00:14:45,360 --> 00:14:47,240 Speaker 1: the periphery at the meeting is going to be about 257 00:14:47,320 --> 00:14:51,120 Speaker 1: succession and what happens to this company going forward. Do 258 00:14:51,160 --> 00:14:54,240 Speaker 1: we have a better sense of that plan yet? Is 259 00:14:54,280 --> 00:14:56,720 Speaker 1: it something that's being talked about in the open? You know, 260 00:14:56,720 --> 00:14:59,480 Speaker 1: it's been talked about for years and you know the 261 00:15:00,000 --> 00:15:04,880 Speaker 1: critism the envelope and you know, maybe something will be 262 00:15:04,880 --> 00:15:08,160 Speaker 1: revealed on Saturday, but to date, you know, it's it's 263 00:15:08,240 --> 00:15:11,400 Speaker 1: kind of a trust me situation, and it it does, 264 00:15:11,480 --> 00:15:16,480 Speaker 1: I think create uncertainty, um, Mike and David, because you know, 265 00:15:16,560 --> 00:15:20,200 Speaker 1: people don't have that um, you know, confidence that they 266 00:15:20,280 --> 00:15:24,240 Speaker 1: might have in somebody who was you know, younger, and 267 00:15:25,200 --> 00:15:29,240 Speaker 1: so the succession issue and also the other thing that's 268 00:15:29,240 --> 00:15:32,600 Speaker 1: really happened is that value investing has gone out of 269 00:15:32,640 --> 00:15:36,240 Speaker 1: style and um, you know, indexation, as you well know, 270 00:15:36,360 --> 00:15:39,800 Speaker 1: has become this dominant force. And even Buffett came out, 271 00:15:40,200 --> 00:15:42,720 Speaker 1: you know, a couple of years ago as a proponent, 272 00:15:43,440 --> 00:15:46,760 Speaker 1: So you know, they're relatively few kind of value investors 273 00:15:46,760 --> 00:15:49,400 Speaker 1: who you know died in the wool who still believe. 274 00:15:50,320 --> 00:15:55,520 Speaker 1: And that's changed the dynamic here too. What's the what's 275 00:15:55,520 --> 00:15:59,320 Speaker 1: your let's leave warm buffet aside and making the oracle 276 00:16:00,000 --> 00:16:02,920 Speaker 1: of the moment. What's your view of the markets these days? 277 00:16:04,240 --> 00:16:06,320 Speaker 1: I don't want to make too much of today's down day, 278 00:16:06,360 --> 00:16:08,280 Speaker 1: because we're not down all that much in the in 279 00:16:08,320 --> 00:16:10,560 Speaker 1: the futures markets or even in Europe, but there does 280 00:16:10,600 --> 00:16:13,200 Speaker 1: seem to be sort of a it's not an exhaustion, 281 00:16:13,240 --> 00:16:16,760 Speaker 1: a tiredness to the rally that we have seen. Well, 282 00:16:16,800 --> 00:16:19,680 Speaker 1: I think again, I think you're right on what's from 283 00:16:19,680 --> 00:16:23,880 Speaker 1: our perspective. Um, We've had ten securities, we call them 284 00:16:23,880 --> 00:16:27,080 Speaker 1: a terrible ten and you know, you know their names. 285 00:16:27,080 --> 00:16:32,640 Speaker 1: And today Amazon is doing well, but it's Amazon, Facebook, Netflix, etcetera. UM, 286 00:16:32,680 --> 00:16:36,440 Speaker 1: and you know, full disclosure, we own some Google. UM. 287 00:16:36,520 --> 00:16:38,440 Speaker 1: But you know, these are the stocks that have driven 288 00:16:38,440 --> 00:16:41,480 Speaker 1: the market for the last number of years and driven 289 00:16:41,480 --> 00:16:44,680 Speaker 1: the returns of the index funds, and we think that's 290 00:16:44,840 --> 00:16:48,960 Speaker 1: rolling over and it's a very very significant event because 291 00:16:49,040 --> 00:16:53,200 Speaker 1: almost everybody's at the party, and we truly believe that 292 00:16:53,240 --> 00:16:57,040 Speaker 1: it's being on the other side, being on the you know, 293 00:16:57,360 --> 00:17:02,520 Speaker 1: buying fundamental value wherever it is um will be the 294 00:17:02,560 --> 00:17:04,920 Speaker 1: next big leg up for investors. So we think this 295 00:17:05,000 --> 00:17:09,160 Speaker 1: is the beginning of a huge secular shift and opportunity 296 00:17:09,720 --> 00:17:12,480 Speaker 1: fundamental value wherever it is. Where where are you anticipating 297 00:17:12,520 --> 00:17:14,960 Speaker 1: that will be? Well, you know, it's all over the world. 298 00:17:14,960 --> 00:17:17,680 Speaker 1: I mean, one example that we like is is Altrea 299 00:17:17,920 --> 00:17:20,920 Speaker 1: and they reported yesterday and you know, they have very 300 00:17:20,920 --> 00:17:24,880 Speaker 1: strong numbers. They'll probably raise their diven end yields. Three 301 00:17:24,880 --> 00:17:28,960 Speaker 1: point six trades at sixty two easily is worth ninety. 302 00:17:29,160 --> 00:17:31,560 Speaker 1: You know, we can argue about it, but you know, 303 00:17:31,600 --> 00:17:35,040 Speaker 1: and so you've got deep value there. You've got a 304 00:17:35,119 --> 00:17:39,800 Speaker 1: good business, good management, and it's relatively unloved, you know. 305 00:17:40,080 --> 00:17:43,400 Speaker 1: So and you know in Europe there are things to do. 306 00:17:43,640 --> 00:17:47,240 Speaker 1: We love nestlely. People are gonna eat chocolate bars and 307 00:17:47,359 --> 00:17:49,640 Speaker 1: learn the pet food business. People like their pets better 308 00:17:49,680 --> 00:17:54,440 Speaker 1: than their relatives, and so there's a lot of neglected 309 00:17:54,480 --> 00:17:57,720 Speaker 1: securities that were not in the Terrible ten. So for 310 00:17:57,800 --> 00:18:02,320 Speaker 1: the few of us who aren't hugging the index like most. 311 00:18:03,240 --> 00:18:07,080 Speaker 1: We think there's a lot to be excited about. But 312 00:18:07,320 --> 00:18:11,960 Speaker 1: is there a cause, a trigger for this big change 313 00:18:12,200 --> 00:18:16,160 Speaker 1: you see? Well, I think the trigger points are multiple 314 00:18:16,320 --> 00:18:18,760 Speaker 1: that that you know, in every sort of big technology 315 00:18:18,760 --> 00:18:21,560 Speaker 1: boom in the past, at some point the companies begin 316 00:18:21,680 --> 00:18:24,960 Speaker 1: to run out of steam. And we see that with 317 00:18:25,000 --> 00:18:27,560 Speaker 1: what's happened in the last number of weeks and Apple, 318 00:18:28,080 --> 00:18:31,439 Speaker 1: which was the only company to own. And then you 319 00:18:31,520 --> 00:18:35,320 Speaker 1: also see the situation within the oil markets where you 320 00:18:35,400 --> 00:18:42,639 Speaker 1: have um liquidation of US assets of the oil rich countries. 321 00:18:43,160 --> 00:18:45,760 Speaker 1: So a lot of the favorite stocks are in net 322 00:18:45,760 --> 00:18:49,240 Speaker 1: redemption mode. How about you mentioned Al But I want 323 00:18:49,280 --> 00:18:51,360 Speaker 1: to ask about healthcare. We had this big deal yesterday 324 00:18:51,400 --> 00:18:54,160 Speaker 1: with Abbott. Yeah, and I wonder how you're feeling about 325 00:18:54,200 --> 00:18:58,159 Speaker 1: the healthcare sector. Well, you know, healthcare is you know necessary, 326 00:18:58,359 --> 00:19:01,919 Speaker 1: it's just it's very much regulated by the government. And 327 00:19:01,960 --> 00:19:04,880 Speaker 1: then you see like new gentlemen referring to you know, Valiant, 328 00:19:04,880 --> 00:19:08,879 Speaker 1: where all these people seek you know, huge growth and 329 00:19:08,960 --> 00:19:12,680 Speaker 1: oftentimes the growth doesn't come through. So you know, we're 330 00:19:12,720 --> 00:19:19,520 Speaker 1: we we like businesses that um you have less government potential, 331 00:19:19,600 --> 00:19:25,080 Speaker 1: government pricing interference, and so healthcare. I think it is 332 00:19:25,119 --> 00:19:28,360 Speaker 1: harder to guess and harder to analyze, so we look 333 00:19:28,400 --> 00:19:33,440 Speaker 1: for the the easier things to do. You know what's 334 00:19:33,440 --> 00:19:37,560 Speaker 1: easier these days? Uh, it's never an easy thing to 335 00:19:37,680 --> 00:19:40,480 Speaker 1: do to to keep up with the markets. But is 336 00:19:40,520 --> 00:19:45,080 Speaker 1: there is there something that's uh you de fine easier 337 00:19:45,119 --> 00:19:46,840 Speaker 1: When you say easier things to do and they tell 338 00:19:46,880 --> 00:19:49,200 Speaker 1: me what you're looking at, well, well, there's there's certain 339 00:19:49,200 --> 00:19:51,600 Speaker 1: things that we know are certain and you know, and 340 00:19:51,640 --> 00:19:54,000 Speaker 1: this would be you know, uh, you know, repeat human 341 00:19:54,040 --> 00:19:57,280 Speaker 1: behavior and we know that it goes on and people 342 00:19:57,320 --> 00:19:59,440 Speaker 1: fall in love every day. They want to look good. 343 00:20:00,160 --> 00:20:03,040 Speaker 1: So one of our favorite companies, even though it's you know, 344 00:20:03,080 --> 00:20:06,000 Speaker 1: the price is very long these days, is listed in 345 00:20:06,040 --> 00:20:09,720 Speaker 1: Switzerland and it's called Chemo, and you know, they control 346 00:20:09,920 --> 00:20:12,600 Speaker 1: our own Cartier and a whole series of watch brands. 347 00:20:13,440 --> 00:20:17,080 Speaker 1: And if you do the analysis, the fundamental analysis, you're 348 00:20:17,119 --> 00:20:20,840 Speaker 1: paying very little today for one of the most phenomenal 349 00:20:21,440 --> 00:20:25,359 Speaker 1: groups of brands in the world. And they're honest, and 350 00:20:25,480 --> 00:20:28,760 Speaker 1: they have eight billion dollars in cash and you know, 351 00:20:28,840 --> 00:20:30,960 Speaker 1: everyday people are going to want to buy their loved 352 00:20:31,000 --> 00:20:35,400 Speaker 1: one something and um, so we we love these sort 353 00:20:35,440 --> 00:20:40,520 Speaker 1: of predictable, understandable um and if you have the patience, 354 00:20:42,480 --> 00:20:46,719 Speaker 1: we think that that there's tremendous upside in you know, 355 00:20:47,080 --> 00:20:54,960 Speaker 1: kind of real value, not indexed value. And how long 356 00:20:55,080 --> 00:20:58,120 Speaker 1: is it? How long is that? Well, you know, I've 357 00:20:58,160 --> 00:21:00,480 Speaker 1: read both of your resumes and I know you know 358 00:21:00,560 --> 00:21:03,239 Speaker 1: that you you you know, you're both very distinguished and 359 00:21:03,280 --> 00:21:06,119 Speaker 1: that you've worked very hard to build your careers and 360 00:21:06,160 --> 00:21:09,280 Speaker 1: it didn't happen instantly. So you know, I think people 361 00:21:09,359 --> 00:21:12,159 Speaker 1: have to have at least a five year view and 362 00:21:12,160 --> 00:21:15,199 Speaker 1: they have to really understand what they're they own, not 363 00:21:15,359 --> 00:21:17,840 Speaker 1: this idea I'm going to buy an index fund and 364 00:21:17,840 --> 00:21:23,800 Speaker 1: I don't understand the risk of owning the terrible ten um. 365 00:21:23,840 --> 00:21:25,920 Speaker 1: It's thinking, you know, and it's a you know, it's 366 00:21:25,920 --> 00:21:28,719 Speaker 1: a message the Warren Buffett. I think maybe his central 367 00:21:28,760 --> 00:21:31,879 Speaker 1: message is, you know, I think like you own a 368 00:21:31,880 --> 00:21:35,680 Speaker 1: piece of the business. And I think that's sort of 369 00:21:35,800 --> 00:21:38,919 Speaker 1: his one principle that will endure for many years. David Winters, 370 00:21:38,920 --> 00:21:41,800 Speaker 1: thanks for joining us. Have a great time out in Omaha. 371 00:21:42,320 --> 00:21:45,480 Speaker 1: David Graw saying it's it's basically a weekend of lots 372 00:21:45,480 --> 00:21:49,240 Speaker 1: of meat, no vegetables. The Omaha way, there's also a 373 00:21:49,280 --> 00:21:53,680 Speaker 1: five K Warren Buffet five K and a newspaper toss competition. 374 00:21:53,720 --> 00:21:57,760 Speaker 1: He will participate and David Winter's Great Investment Advice by 375 00:21:57,880 --> 00:22:00,760 Speaker 1: and hold David Garra and my to comna keep for 376 00:22:00,920 --> 00:22:04,200 Speaker 1: at least five years. We'd like to stick around for 377 00:22:04,200 --> 00:22:06,240 Speaker 1: for that long. We are definitely going to stick around 378 00:22:06,280 --> 00:22:09,000 Speaker 1: for the next few minutes and come back and we'll 379 00:22:09,359 --> 00:22:11,439 Speaker 1: we'll take a look at what's going on in the 380 00:22:11,480 --> 00:22:15,960 Speaker 1: oil markets. We have oil industry earnings stout any minute. 381 00:22:15,960 --> 00:22:19,960 Speaker 1: Exxon is supposed to report following a little bit less 382 00:22:19,960 --> 00:22:24,119 Speaker 1: than stellar numbers from Phillips SIXTI. This is Plumberg surveillance 383 00:22:24,280 --> 00:22:25,280 Speaker 1: on Bloomberg Radio.