Anytime Warren Buffett does a deal for Berkshire, he makes the rounds on business news. This week he made a deal and sat for the usual interview with CNBC (video and transcript linked below).

These interviews can be hit or miss sometimes because they want his perspective on everything. But two things stood out: the certainty of gravity and taxes.

The first is something he’s asked every time and fits with the last post. Interest rates act like gravity on asset prices.

But because interest rates have stayed low for so long, it becomes easier to ignore the risks interest rates pose. The longer things stay the same, the more investors expect it to continue: Continue Reading…

Warren Buffett made a Dow 1,000,000 call this week. He thinks it will be surpassed in the next 100 years.

It’s hard to imagine a century from now. That number might even seem impossible to some people, but the math checks out. It works out to a conservative 3.8% annual return over the next century.

Really, the number is not that important. What is important is Buffett’s faith in America’s ability to offer a competitive advantage for businesses over the next century. And if businesses have the opportunity to do well, workers do well, the country does well, and owner’s of businesses (investors) will prosper. Continue Reading…