CEO and chairman of Berkshire Hathaway, Warren Buffett, on Wednesday mentioned to Fox Business Network that the Obama administration should approve the Keystone XL pipeline.
During an exclusive interview with Liz Claman on “Countdown to the Closing Bell,” Buffett discusses how he understands why some will oppose the pipeline, since it will cross Nebraska, his home state. Then when Buffett was asked whether or not he felt Keystone will be approved, his response was, “I think it should.”
“But that’s always a problem with pipelines. There’s a lot of the not in my backyard problem, but I think, by and large, Keystone should be done,” added Buffett.
The Oracle of Omaha added that he has put his political support behind Hillary Clinton, former Secretary of State, and said that he backs her “100%” if she plans to run for president in 2016.
“If she runs, she’ll win,” predicted Buffett.
When asked if he’d consider supporting former governor of Florida Jeb Bush, Buffett said, “I think he’s a fine guy, but I’m for Hillary.”
Buffett is currently celebrating 50 years at the head of Berkshire Hathaway, and he also commented on a number of different issues facing his company and the United States.
Buffett confirmed that Berkshire Hathaway is going to release much more than the annual letter this year. Buffett, as well as Charlie Munger – Vice Chairman of Berkshire Hathaway – both wrote separate letters looking ahead to the future of the company for the next 50 years. Buffett mentioned that he and Munger are finished with their letters but have not shared them with each other.
“Charlie hasn’t seen mine. He doesn’t care what I say,” joked Buffett.
While reflecting on his 50 years at the head of Berkshire Hathaway, Buffett mentioned a terrible mistake. He said he should never have sold his shares of Walt Disney stock. Bob Iger, Disney’s current chief, is a “homerun hitter,” added Buffett.
As of today, Berkshire Hathaway owns many companies under the Berkshire Hathaway umbrella, including Burlington Northern Santa Fe Railroad, Heinz and Geico. They also own many stock investments including American Express, Wells Fargo and Coca-Cola among others.
According to Warren Buffett, Berkshire Hathaway is in the process of acquiring a small company in Europe.
Geico was Buffett’s “first love,” and he praised Tony Nicely, the company’s CEO, who even surprised Buffett by joining him during the interview.
“No one has done more for Berkshire Hathaway than Tony Nicely,” said Buffett.
When Buffett was asked about the Berkshire Hathaway succession plan, he said that the company’s directors and he talk about it all the time.
When discussing the United States economy, Warren Buffett feels that it would be a mistake for the Fed to start raising interest rates in 2015.
“I think it’s going to be very tough to raise rates when you’ve got what’s going on around the world,” said Buffett.
The billionaire investor also commented that the 30 year government bond is actually the last asset he would purchase today, saying that the coupon is just over 2%.