Warren Buffett and Jack Welch on the Economy, Innovation, and Capturing Osama bin Laden

On Monday, Warren Buffett appeared on CNBC to discuss the Berkshire Hathaway shareholders meeting – he met with around 40,000 [...]

May 2 2011 by ChiefExecutive.net


On Monday, Warren Buffett appeared on CNBC to discuss the Berkshire Hathaway shareholders meeting – he met with around 40,000 shareholders over the weekend to answer their questions. Jack Welch (former GE CEO) joined him on air to discuss the current state of the American economy. The Washington Post compiled key takeaways from the two mega-moguls:

  • Though the economy is improving, rising food and gas prices will most likely temper the growth (consumers will have less disposable income to spend)
    • The increases in gas prices are like tax increases, but the money goes to oil-producing nations
    • The U.S. lost $100 billion in the first quarter due to higher gas prices
  • The housing market is not improving, but when it does there will be major progress
  • It is a good thing that the Fed will stop its quantitative easing (bond-buying) program this summer
    • Welch: “Free money in the hands of very smart people for too long is likely to create something unpleasant.”

The two also weighed in on the death of Osama bin Laden; Buffett (though happy about the terrorist’s death) noted that it should not have a big effect on the marketplace. He did say, however, “It’s always been a mistake to bet against the United States since 1776.”

Read: Berkshire’s Buffett and ex GE CEO Welch say US still faces terror threat but economy improving