Pete, i begin with you buffets gone. Are you staying around you know, it is disappointing. Its something thats a bit of a surprise, quite honestly we know what a hit the airlines took it was very clear and how the numbers look right now and some of the Recovery Period was he getting out on the lows i think there is some upside right now im only in the options for delta. They had a great run up until we found out the oracle was bailing. They cut that back a little bit. Bren, you have a small position in delta as well. If this is a statement this group of stocks is uninvestable, if the greatest seller sells out completely and who knows what prices he got out but thats statement in and of itself absolutely. Its a statement the buffet backstop is out of the airline stops. Were practicigmaticpragmatic. Were not dogmatic we will move out of this Airline Position because theres a ton of other companies that will not have this negative head wind we just dont know the trajectory of the u. S. Economy recovery we dont want to dig our heels in and stay in it because we dont have to make it back the same way we lost it. Jim, youre in Ak Alaska Airlines if the oracle is out completely and you believe that people should invest in Airline Stocks still. Tell our viewers why they should own an Airline Stock if buffet says he is gone completely im not in airline, plurals, stock. Theres a very specific reason im in Alaska Airlines which is it has almost no debt net of cash on its Balance Sheet. The other three have tens of billions of net debt the thesis here, its part of a portfolio. I cant just own microsoft and amazon and all those sorts of names. I want to have something that will have a bit upside i think the Airline Industry as a whole will survive i look at a company like alaska as the only one within that regime that is best positioned to last a 90 decline in revenues for the immediate future frankly, ive done the only sis. I think it can go nine mopnths with zero revenue. At the end of the day, were investors. Were picking stocks im not recommending the Airline Industry as a whole, have not and will not Alaska Airline s a special stock thats worth a look based on its Balance Sheet. These are two conversations theres the survival of the industry were not going to let the airlines go out of business. Thats not going to happen the industry itself is going to continue however, the Airline Stocks themselves may not be able to continue to be a worthwhile investment for people because the industry itself, though it survives is going to be veerly depressed and depressed for a number of years. Were talking years. Some say three to five years i sold united in the 50s. Its such capital spenders. They just have to keep refreshing the fleet too many people are focusing on when traffic returns after 2001 it was three years. There you can identify what the fix wad. Will they be able to sit three people so closely packed in. Will they have to reconfigure the airplanes. The answer is yes. Are they going to have more people to screen people out thaz are going on the answer is yes. Youve got the cost going up while the capacity is going down i dont think they are investable with all the the cards thats been done in this market, why look at the airlines there are easier decisions to make warren buffet history with the airline is not a good one. He was lucky to get out of it. Great piece andrew wrote in the New York Times he took a listen to the meeting this weekend. One element is the airline and Airline Specific and you guy just talked about that i also think if you were listening to the words that warren was saying and somebody who is such an optimist that warren is, i think it was perhaps even painful for him to be as sober as he was during those several hours of speaking on saturday. I think when he talked about the airlines, he was talking about two to three years out not necessarily having the same number of people traveling on airplanes as in 2019 for three years out. Think about what that means. I dont think thats just a call on the airlines. I dont think you hold 137 billion dollars in cash during this period when theres so many other investors out there who seem to have remarkable confidence that either were in a v or a u or things coming back im not saying he clearly he was not saying that its a probability that were going to go into some deep, deep depression i think he thinks its a possibility and that is a big distinction. As i said, because its so hard for him to Say Something like that, i think he doesnt want to scare people i think he is optimistic long term about the future but he spent so much time almost doing an economic study of the United States over the past several hundred years starting in 1789 he spent a large portion of his talk speaking about the years between 1929 and 1951. Those years, 22 years, it took that long to get back to the highs. I dont think he was saying thats necessarily whats going to happen or probability but a potential. Im not sure that risk is whats bake into the market now you write and i quote, more than his words, he spoke with his wallet he usually relishes a down stock to take advantage of lower prices, not this time. Buffet going on on the say we have not done anything because we dont see anything thad attractive to do its quite a statement we have not done anything because we dont see anything that attractive to do. Seemed to suggest had jay powell not stepped in, there might have been a lot more opportunity for berkshire and buffet to take advantage of will to have an opportunity to invest at much cheaper prices he praised jay powell for jumping in but saying still, lot offense people say theres a fed put. I should be in hes saying we havent seen those big opportunities come our way. That should be sobering for the market he talked over the weekend about what took place in 2008. He wasnt trying to make a statement to the world so much as he really believed and he was right to make some of those investments a month after Lehman Brothers he loves it when theres dark clouds not taking advantage of those dark clouds. Hes worried there could be darker clouds coming i thought it peculiar and maybe sober that his silence has been deafening, i think, over the last many weeks. Some of us have wondering is he taking a look at boeing, at preferr preferre preferreds how is he viewing the airline . I thought fact he was so quiet over these last many weeks was an ominous sign in and of itself. He had been on squawk box six weeks ago. It was not an exact science here i think he been clearly, when it comes to airlines if youre trying to figure out what to do with airline, you start to think about boeing i remember there was speculation he was going to come in and try to save boeing or people thought that might happen. If you dont like airlines, its hard the like boeing for sure. Its a great read. I hope everybody has had a chance to take a look at it. We appreciate you sticking around and coming on halftime. Thank you one last thing what i admire most is his humbleness about him i think underneath just like he expressed, we dont know we really dont. None of us do whether youre the oracle, the gr greatest investor ever or just an average joe thank you. Thank you how about that . The fact this is a guy who looks for opportunities especially in the worst of times and admittedly comes out this weekend and says, didnt see any. Dont have any we have not done anything because we dont see anything that attractive to do. How do you take that statement from warren buffet that was the shocking part about it theres no doubt about it. I was expecting to hear something. Looking for where has warren buffet been. We know how much cash he had he got criticized for having that cash in january suddenly he looked brilliant an then he didnt deploy it i think that does surprise me. Im surprised he couldnt find something out there. The other thing that surprised me is this the fact hes got such a large percentage and we talk about the big five all the time here in terms of the technology names. We talk about it every single day on cnbc. How about the fact that warren buffet presently has a dominated portfolio of five stocks you have 69 of what hes got right now. Hes got American Express, wells fargo, bank of america and then you had a couple others. Apple. Those five, those are his big five it shows you that weve got this narrowness in the market itself in the broad market in terms of some of these nasdaq names and you have warren buffet with this very narrow group of five stocks im amazed that he wasnt able to find something out there where he said this is time this is the time to own this particular stock its a bit sobering because its surprising i went in expecting he did multiple names the market may have moved too fast away from buffet in that you never know how he was thinking towards the depth of the sell off and lo and behold the fed comes in and we have this v shape bounce in the market now maybe he thinks that this v shape is not going to hold itself in the market and thus there are no opportunities today. Because people think the market shouldnt be where it is and maybe shes waiting for some move lower who know what is he thinks going back the to the lows but obviou the fed coming in the way it did was a significant moment to maybe take the worse off the table. He was praise worthy of jay powell for obvious reasons who knows what he is thinking about where this market may be going. Scott, i think youre exactly right. Were guessing here. Theres more questions than answers but thats my best guest. This moved too quickly if march 23rd or when ever it was was the low, this will be the quickest bear market history in the history of bear market. That doesnt comport that all of his lieutenants at operating Companies LikeBurlington Northern are reporting to him. Hes probably looking at the vegs that recession thats staring him many the face saying the stock market after this bounce back doesnt make sense he said all of these ceos are sort of frozen like deer in the headlights that was three weeks ago but bottom line, this thing has moved so quickly warren known as a quick deal maker. I think this happened too soon for him. We give this give back say to the mid 2500 on the s p 500. Maybe thats a point in time at which somethin attractive to him and he can work out a deal. He wasnt negative on the banks. He certainly didnt suggest that the situation for the banks was anywhere near 08, 09 he has wells fargo, bank of america. Do you keep those stocks in your book or not . First of all, he owns those stocks hes owned them for a while but you also have what i struggle with, fundamentally, we have a zero rate environment in the u. S. And were not moving off that any time soon i think you have to go through the math and say how do these discreet different banks make money in these environments. They are different they made a large Aset Management business will be different than a Goldman Sachs who is starting to align themselves with apple. What i really took back, what resonated with what warren buffet is he feels like a lot of our clients did. He said they want to be a ft. Kn knox from our stand point we have own gold since last year and we continue to buy it i think you have these unintended consequences of the fed stepping in and making taking these opportunities away from warren but gold will be a resip yencipient of higher retu going forward. You have other notes out today that arent decidedly negative were trying to speculate and read between the lines about what he said and what he may be thinking in a more broad sense because were not used to hearing warren buffet without a great deal of optimism about things i think its fair to say Morgan Stanley mike wilson says this is a pause to refresh we continue to think 2650 on the s p will be vigorously defended with the two year bear market having ended in march while the 50week moving average provides resistance we believe this will be a pause that refreshes and necessary for the higher prices we expect later in the year. Economic activity has likely bottomed what do you think about that so, i think theres a little too much reading of the tea leaves going on with what warren buffet said. He doesnt know. Nobody knows sf you know what, its like andrew said in his piece i hear you on that and were all doing it yes, were reading into what he said but its also what he did its what he did that resonated more than what he said what he said was pretty striking right what he did was he got rid of the airlines where hes never been a fan what hes also always said and one of his primary tenents is diversity of portfolio is the enemy. If you look at what his Security Holdings were in 2008, theres 57 billion going into this there were 240 billion what could he buy . Hes got 137 billion of cash his biggest basic acquisition is parts. Theres nothing for him to buy he also said he got a number of calls. Those were not at prices he thought was attractive private equity is now the lender of last resort not warren buffet. For him this is not the typical market they want to see. As far as him being silent, hes always silent. He didnt speak during 08 until he came out and bailed out he didnt bail out but gave goldman some extra cash which they didnt need nothing here is out of his play back im not being see lenilent w im asking warren buffet to have a press conference youre saying silent in term of acquisitions. Or activity not buying Companies Just not using substantial weakness in areas where you think he would and where he would already be invested and not taking advantage of it thats a statement right he saved his number of positions from 07 to 08 to 09 he added some others hes got to add major positions for it to impact the portfolio hes been very clear about that. The market did move too quickly. You cant go out and buy whn youre using to doing major due diligence. Its not like hes going to take positions in companies hes never done that hes not going to do it now. I dont really see anything off beat here in terms of what he didnt say hes not that kind of investor for sure. The documents bear it out. If you have what is a annual the wood stock for capitalis capitalists. We all look to this weekend because we want to hear wh at h thinks about the landscape given what is going on and the crisis were all dealing with and if youre looking for a level of comfort other than buffet saying never bet against america, you didnt find much. Thats curious he sounds more negative than i otherwise would have thought thats my only point in doing the down load of what he had to say with andrew. Lets take a look at the other events of this week that we think could drive some of the action we mentioned earnings. We were so focused on tech last week i want to focus on disney for a minute its a widely held stock i know many people watching us are in the stock, have been in the stock or maybe even thinking about getting in because they sense opportunity looking ahead to the other side. Bren, you own it it was downgraded today by the influential term price target cut to 112. What do you do with disney today . We own it we have calls against it thank goodness they did did ksny plus when they did it. That gives a baseline of revenue streams. Realistically, their parks are closed until tend of the year. They have so much entertainment. The movies that arent going be coming out from a technical stand point, the stock has a lot of support between 90 to 100. I would will cautious about selling it here. We may get back into the position or may add some more calls here as volatility picks up i would be cautious about selling it here. I think it hit 50 150 as a high. Its close to 101 now. I dont know in the analyst viewpoint is his price target is at 112 i think he was more saying hold it instead of sell it. Let me ask you guys this because youre an own erp as well if youre not and youre watching our program today, whats a number you would buy disney at. Would it be anything sub 100 is that a level to look or whats your number in. Well, look, i think sub 95. Im hoping that we dont go piercing that like a hot knife lu bu through butter it seems to be mostly focused on the theme parks. Also obviously the broadcast issues and maybe the theme parks take a long time to come back but most people who owned it leading into this crisis looked at the theme park and said, thats a nice business but thats not why we own it we own it for disney plus. We own it for the studios. The studios are hurting right now. Theres no question about it i think there is reason to expect the stupid owes can come back online in terms of producing content before theme parks do look, sentiment, terrible right now. I wouldnt be surprised to see this below 95. I dont have the full position and thats where i would look to add. Okay. Pete, you also own disney. You forget the downgrade of itself the downgrade is not important today. Terning the earnings, tomorrow will be important. What do you tell us . I own it like bren was talking about. Also used the opportunity to use some of that implied volatility thats high to sell against the stock. That part has helped out a little bit i think the beautiful thing about this be is we have 50 i think bren mentioned, it was 150 stock youre 50 from those highs. Its not like a stock that feels like this, i would look at this name and think this almost could be warren buffet it had to push out time again. Were talking about the parks and cruise ships 30 of their revenue coming from that area and the studio themselves thar themselves, that will be difficult. Hulu, you have disney plus and the other things they have invested in and they were able to lean on those now i look at this downgrade and yes its a downgrade its a downgrade of neutral. Lets call it 100 there are a share. They got a 112 price target. Usually the targets are about a year out i still like the stock. Well have to navigate through some difficult times we wont have a time line for when will we start to see the parks reopen people dont have to be right on top of each other they have a couple of their verticals that will be working for them in meantime thats why i think 100 seem fair if it got to 95, i would add to my position. Everybody else says hold it stay with it things will be good on the other side you sold it a