How Berkshire Is a Gauge of the U.S. Economy

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Aug. 1 (Bloomberg) -- Bloomberg’s Noah Buhayar reports on the performance of Berkshire Hathaway and how that correlates to the performance of the larger U.S. economy. Buhayar speaks on “In The Loop.” (Source: Bloomberg)

Volkswagen was expected to have this sort of number, under 11%. berkshire hathaway will report of the closing bell today.

We're becoming a bellwether for the economy.

The reason wayhy we want to see berkshire hathaway today, because of the companies that have been acquired -- it is quite vast.

There are 70 or 80 companies under that umbrella.

Many of them are tied to the u.s. economy.

Good think of the rail raise.

If people are buying more things, the railways will be shipping it.

You have a lot of housing related businesses, a brick company, a paid company, you have real estate brokerage companies.

When you look at berkshire in its entirelty, it has a lot of leverage in the u.s. economy.

There was a joke that warren buffett acquired the data company just so he could have his own numbers.

The one thing you keep hearing when i speak with berkshire investors is that this company has a lot of leverage on the u.s. economy.

Not just what happens in one quarter, because they tend to have long horizons.

The point that they make is that as the u.s. economy improves, business should improve as well.

The bottom-line is that warren buffett continues to add businesses.

A year ago at this time they had just purchased half of heinz . they bought electric utilities in nevada, that will be in this for for this year.

It is likely we will see some progress.

What will be the underperformers in the portfolio?

That is an interesting question.

Bnsf had some problems over the winter, there was some weather problems over there northern corridor.

We are not sure what we're going to see in the second quarter.

Warren buffett has been betting big on the u.s. economy, he says that others should as well.

Is he leaving open any kind of vulnerability by being too focused on the u.s. economy?

That is a fair question.

He certainly has a lot of conviction about it.

And has worked out for him quite well over the years.

It leaves the question if there is any international acquisition.

Greg that is one thing that several investors tell me about.

His field of things that he can actually buy that are big enough in the u.s. to really -- they are narrowing.

With berkshire at its current size, yes.

One thing that i hear is that if he looked more broadly internationally, he might have more options.

Is anyone putting any candidates for that all?

There is always speculation about what he will buy, but i do not have any information.

We like to crunch the numbers.

Great to see you.

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Sales estimates nearly double.

He wants to turn the company into a content provider not just

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