Today, Warren Buffett told CNBC anchor Becky Quick that retail giants like Walmart and Amazon.com are making it difficult for packaged goods companies like Kraft Heinz to compete with retailers’ house brands.
“When you are going toe to toe with Walmart and Amazon," Buffett said, "you’ve got a weaker bargaining hand than you did 10 years ago. I think we over-paid for Kraft Foods, but we won’t pull the plug, it isn’t our style. I have absolutely no intention of selling.”
During a wide-ranging, three-hour interview Buffett said, "If you tell me 3 percent long bonds prevail over the next 30 years, stocks are incredibly cheap. Interest rates govern everything.”
Buffett added, "One stock in particular, if Apple continues to decline in price we'll be buying a lot more of it.”
When Quick asked about widening wealth distribution in America, Buffett replied, “As we get more specialized, the rich will get richer. The question is: How do you take care of a guy who is a wonderful citizen whose father died in Normandy and just doesn’t have market skills? I think the income tax credit is the best way to address that. That probably means more taxes for guys like me, and I'm fine with it.”
Buffett said he would support former New York City mayor Michael Bloomberg if he ran for president.
“He knows how to run things,” Buffett said. “He’s got the right goals for America. He understands people. He understands the market system. And he understands the problems of people.”
Asked about Starbucks former CEO Howard Schultz Buffett said, "I think generally third-party candidates, they’re going to hurt one side or the other, and they’re more likely to hurt the side that they actually favor.”
Asked if he had seen any impact on his companies from the trade war with China, Buffett replied, “We've seen in some companies, not in insurance or anything like that, but some impact with the 10% tariff. Suppliers in China have swallowed the impact but it's leads to higher prices. What my CEOs tell me is at 10% there's no real impact but a move to 25% changes everything with higher prices or changing the source of our supply chain - 25% tariffs would be a game changer.”
Becky asked Buffett if he is relieved the deadline to impose the 25% deadline has been postponed, Buffett said, “I'm just grateful there's some possibility of a resolution at some point. These tariffs hurt China and they hurt the United States.”
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