Buffett 2014: IBM a "difficult situation" for Buffett -Matthews
Friday, May 02, 2014 - 03:58
May 2 - Founder of RAM Partners Jeff Matthews says IBM is increasingly becoming a difficult situation for Berkshire Hathaway. He also sees the internet hurting Berkshire's retail businesses.
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I didn't work. -- We've descended on Omaha Nebraska for the annual Berkshire Hathaway shareholder meeting joining me now is Jeff Matthews founder of the hedge fund ram partners. Also an author so that -- -- back you know mama to be back. It's always interesting in terms of this meeting what is the most important question shareholders should have answered by Warren -- at this. We're the most obvious question is going to be event Coca-Cola. And the whole. Recent drama about -- not really taking a strong stance against coats -- -- But I think the more important question somebody ought to ask is about the impact of the Internet on Berkshire's operations because I think he's in retailing operations. Are starting to suffer. Tonight to me that's the most interest. What are your thoughts right now in terms of Berkshire Hathaway stock which has traded higher than the market. Continues to move higher but are there concerns that are not adequately Princeton right now. -- than the one off the wall kind of can. Concern. Would be if something goes wrong with the win. All this prove that they're -- by rail Burlington northern as the largest. Crude oil -- in the country. And that that exposes them to tremendous liabilities and there's a terrible accident like we saw with CSX the other -- Although that was relatively contained but if if there was something really bad like what happened in Canada. Affected exposed -- this big liabilities but otherwise it's running smoothly and I don't think there's too much. Would you let -- yeah. Well I don't makes -- recommendations but I'm not adding my position so I guess that's. We know that Warren Buffett is big on railroads is also big god utilities and energy he just announced an energy deal in Canada this week. -- those areas of the market in your view where. We should focus -- -- well I think that's actually means what he's done and in need in the business of utilities. He's actually genius because when he started doing this fifteen or sixteen years ago. He was very sleepy idea very sleepy businesses utilities which are regulated rate of return not much happening he's turned it into a massive. Hope this is -- so I think it's kind of something that investors don't really appreciate. How dramatic in impact that's -- number Q and as long as he finds opportunities I think he should. It's hard to be about investor based on what we're seeing in the stock market really think that's it's it's pretty hard it's pretty there aren't too many undiscovered. It's toughest I've seen. Him in five years since the crisis. Are you fighting any interest in place yourself. Honestly. If I had something great -- tell you about it. But really it's very difficult you have to you have to kind of wait and pick your spots and there aren't many spots that right now. Warren Buffett's stock holdings actually underperformed in the past years should he unloaded some of these companies whether it's -- IBM or something. Well far be it for me to to tell them what to do is the best stock picker right time. And -- long term investors. He's not -- he's he always says he doesn't treated like got bridge where you discard your worst cards. So I'm not gonna give any advice like that I can think IBM has turned into a difficult situation. Technology's changing dramatically. Game and we're also finding you mentioned Coca-Cola. The Coca -- -- instance kind of deteriorating because there's so many alternative breaks out there in the -- just don't seem to gravitate towards sugar water. I'm so so things are changing times are changing and ultimately have that that develops we'll see. Jeff Mathis get to talk -- my opinion thanks so much. I'm Rhonda -- this is Brothers.
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