David Wilson, Greg Able, David discussed on Bloomberg Surveillance
It's out there this week, and it seems Into the coming years. We welcome all the least Gran once in time King bloomers surveillance as we finish up strong, our and right now. And with us David Wilson is the only one. I know who's read every single Berkshire Hathaway annual report and this is on the gentleman. David, who's never going to play the ukulele at the convention. Greg Able, is not Warren Buffett is no, He's not. But he has the potential to be Warren Buffett successor. That's what we learned this morning. You know, when Buffett talked to CNBC on the heels of Berkshire's annual meeting, and this question has been hanging around for years, who's going to succeed buffet? So the idea that we have a bit more certain? T. Then we did before on that score is going over. Well, Berkshire's up 1.6% in early trading now bear in mind, too, that Berkshire put out first quarter results over the weekend earnings and sales being honest. Average estimates of Bloomberg survey the end of the quarter with $145.4 billion in cash brand. They spent 6.6 billion on stock buybacks. I've been going back and forth Craig Moffett, Moffett Nation Center, Apollo Variety, and you're the only one I know who to the three decimal points knows how much they lost. How much is it? It's billions. No questions, but I gotta tell you beyond that we have earnings out of that Stay. Lauder, which are not going over well stocked stand about 4% in early trading. The cosmetics makers fiscal third quarter results came out sales trailed analysts average estimate for just the second time in the past four years. It's gross profit margin was lower than projections. Esteem, Archer said Makeup demand is weak because the corona virus pandemic reduced the number of occasions to use it. On the flip side, you have modern up about 3%. The company agreed to provide as many as 500 million doses of its covered 19 vaccine to a global program called Kovacs to assist developing countries. Now those shots are gonna be delivered starting in the fourth quarter. We're also seeing gains and other vaccine makers. Germany's cure back Novavax Vax art all higher in early trading. Don't jazz. That's what I have to know. Something is so much more on Verizon. Apollo sure, the morning as well right now. Well, not on media announcement of Aussie and joining us is Bloomberg intelligence? Senior analysis. And while there's a things to talk about, but Lisa with the non, I think we really ought to talk about ship. Shorter's Lisa. Why don't you start it off with announced, all right, and on, let's get to what PacBell singer of Intel was talking about this idea that the shortage could go on for a couple of years. I mean, how significant will this be in terms of affecting everything from automakers to washing machines to your iPhone? You know, Good morning. Thank you for having me look, None of the stuff is packed, Gelsinger's said on 60 minutes with particularly surprising we have been caught flat footed and it's been a long time country. Right. So the auto industry for all the noise that it makes is about 10% of semiconductor demand. By this is an all pervasive shortage. We are connected at the head would respect to these global regions that makes semiconductors, particularly Taiwan. And what happened in 2020 was Way saw a shortage in supply or resources huge fall off and demand that the results of the pandemic we cut supplies in chips and that supply has gone into PCs enhances and other areas. So when demand did come back in autos, much stronger than one anticipated got caught flat footed. So this past the hot potato of humane is going to continue until global trip supply catches up with demand, and that's gonna take time. Now, what would you say to people who would argue that we were much more rooted to the physical world During the pandemic? We bought stuff We didn't have experiences. And when the world goes back to normal, the ship tip shortage will be alleviated by the idea that people will be buying less stuff. Do you buy that argument? No, I do not. Because one of the things that the pandemic has thought of is we were this was it was it was a crisis coming and that was amplified by the pandemic. We have been running on old PCs one p p per household for a long time and the pandemic stowed that you know, the old clunker that you have in your home is not good enough for work from home. Are your kids or for you? So you know, fast forward seven months or a or a year and a half of the pandemic has shown us that we need one PC per person and some of the stuff we may never go back to pretend Emmett. The new normal will be Very different and then building up these factories where they manufacture this stuff. Is it like a copper mine in Chile? Or can it be done in real time? In 90 days? Where's it fit into that continuum? No 90 days. It is not and a copper mine And to me, it certainly is not look. The reason we went to Taiwan, and we put all our eggs in that basket because of cost. Um and we have to reinvigorate are indeed right from the stand level to producing engineers. And we have to have the capabilities from an infrastructure standpoint to build it here in the U. S. Is in fact. We want to sort of balance placing the chase come on and on. Do we have the will to do it? Do you see any indication that the business sense of technology is going to allow for that? It would just keep going to a Taiwan. Is it? Is it possible? Absolutely. Is it likely? No, it's brilliant. Like Edie is more likely. Now, Then in the last 10 years, Yeah, okay. I got to go rent a car. And thank you so much greatly appreciated announcement of us, Ian. First time I've ever talked him when it wasn't about Microsoft. Howard was that Lisa? You got to be kidding me. I gotta take you after thought up to camp. Okay. I proud of havoc are folks I mean, Welcome to New York. So I got a problem. What about you? Two end up. I'm going to squeeze into the Toyota camera on I go. I think that if you were lucky to get a Toyota camera, there was a story today that you said that rental car companies are now buying used cars at auctions because they're that short vehicles because they cannot buy the new ones just to give you a sense, and this is all do it very much into integrate intimately tied to the semiconductor shortage. The idea here. They can't get enough cars. It's just amazing to me..