Stocks “are not richly valued relative to interest rates.” “Net we’re buying,” he said. “We’re basically buyers over time. There could be conditions under which we’re sellers. For one thing, the money keeps coming so we basically keep buying.”
On IBM:
Buffett was asked whether he’s been a buyer or seller of the stock. Berkshire owned 37 million shares of the company as of the end of September. “It was advantageous if you had a loss in shares and we did in some of IBM, it was advantageous to sell last year rather than this year,” he said. “It would certainly mean that if we had a high cost of IBM that we were selling, we would have sold it last year, and if we had low cost, we would have waited until this year. And we had some of both.”
Berkshire Vice Chairman Charles Munger joined Buffett in the interview and also addressed succession at the conglomerate, saying shareholders probably have “seven or more good years coming out of Warren.”
Asked how many they had for him, Munger, 94, said: “Not very many.”
This article was provided by Bloomberg News.