The answer is I’m not qualified.
(LAUGHTER)
CLAMAN: Well, one of the things that he announced, Bill, was that Berkshire is the fifth largest U.S. behind ExxonMobil, Microsoft, Apple, one of your companies. I mean, that’s just amazing. Do you believe that it’s possible, that at the rate Berkshire is going, it could one day overtake the size of Microsoft?
GATES: Well, valuations have a way of jumping up and down quite a bit. Berkshire’s growing because it retains its earnings and buys attractive businesses. And so I think that valuation is headed up. And I think it’s at a great company.
Tech companies, you tend to have more variance. They can go up a lot faster, but they can also go down a lot faster.
CLAMAN: Does it make me nervous if I’m about to tell you that right now we just got the check that Berkshire’s market cap is about 12 Billion behind yours? Can you hear the breath on your neck right now?
BUFFETT: You have to bear in mind Microsoft is paying significant amounts on dividends. It’s repurchasing shares. Berkshire is retaining virtually everything. So it’s really not apples to apples, if you excuse the expression.
CLAMAN: When you talk about the businesses that he buys, you know what, newspapers have been his latest interest, the regional and local newspapers. By the way, the newspaper toss contest this year — you were both newspaper delivery boys back then — looked like a tie to he me. You guys took several attempts at each throw. I know I did too. But I mean, I think I hit the first step, but you hit the second and third?
BUFFETT: Well, let’s call it a tie and everybody will be happy then.
GATES: It was a bit disappointing. I think we have room for improvement next year.
BUFFETT: We definitely do
CLAMAN: Well, Bill, you looked sort of serious and anxious and, by the way, what’s the with the ringer? The supermodel Kathy Ireland you brought in?
BUFFETT: She’s good.
CLAMAN: Yes.
BUFFETT: She started as a newspaper carrier and she started in Santa Barbara. She started her business career as a newspaper carrier
CLAMAN: Kids, you start as a newspaper carrier. You’ll end up like one of these guys.
BUFFETT: Or Kathy Ireland.
(LAUGHTER)
GATES: Hard to predict which
CLAMAN: You know, you look at the newspaper business and did you think that was a good idea to get into at a time when everybody said newspapers were dying? When it was brought up — or was it brought up at the board meeting, Bill?
GATES: Well, we always get a chance to talk about the new things Berkshire is doing and whenever everybody is getting out of something, it’s certainly worth considering whether the price might make it attractive, particularly if you have a theory about how to manage things as well as has been done in Buffalo. You know, Warren’s got some good managers. Stan Lipsy (ph) did a great job there, but he’s got some others now who are getting involved if new papers get acquired so you’re taking advantage of those strong managers.
CLAMAN: The newspapers you like because of their local impact. Warren, would you — are you
considering buying local radio stations or local TV stations?
BUFFETT: No.
CLAMAN: Not at all?
BUFFETT: No, I’ve got a special place in my heart for newspapers. They’re not going to be — they’re not going to grow in value. Look, we bought them at very reasonable prices. We will get a decent return on our money, but they’re not going to move the needle at Berkshire.
CLAMAN: I always ask you about “The Washington Post.” You’re still a very large shareholder; you don’t sit on the board anymore.
