I think that, you know, we live in the best country in the world, and we will solve our problems, and the people that own equities, purchased over time, not just when they get all excited about it, in a lowcost manner are going to do fine. Warren, have you noticed that that ketchup bottle was already shaped like a ukulele . Have you thought about that . Like a custommade i mean, you could have one easily made and when you play the ukulele, you could be pushing your products. Were going to see how this one sells. And if it performs like i anticipate, they probably will put me in charge of new product development. Red emade for that is my favorite i decided, when i looked at both of them. I do like the whats it say . Preferred by hot dogs, and then it has your picture. That i like. Were in business, joe. All right. Warren, and becky, great job. Warren, thanks so much for all your time. Phenomenal as usual. We appreciate it. Becky, get home safe. Well see you tomorrow. Make sure you join us tomorrow. But for now, squawk on the street is next. Good montds morning. Welcome to squawk on the street. Im carl quintanilla, with melissa lee, jim cramer and david faber at the new york stock exchange. Ism services tomorrow. Nonfarm payroll on friday. Got some selling in europe. General softness. Some of that fed by shanghai overnight down 3. 7 . The worst session in the year and a half as the Chinese Government announces new restrictions in taxes to clamp down on real estate prices over there. In asia, the hang sang, look at the nikkei, pretty nice day. Road map for this monday morning starts off with Warren Buffett. Three hours of conversation with our own becky quick. The oracle weighs in on stocks. Sequester, housing, and what apple should do with the cash. More signals of slowing growth. Two big stories in the newspapers about how companies arent adding jobs, and the rich are the only consumers spending money. Barclays saying markets underestimating the value of the stakes in alibaba and japan. The company says it will no longer support the blackberry 10. Is that product in trouble. Samsung releases a teaser video for the galaxy s4, or as cramer calls it, the galaxy. 52week lows on friday. Well start with the oracle of omaha. Warren buffett spending the morning with becky and joe, saying hes on the hunt for more elephants. Says stocks are still a good bet for investors. We like buying businesses and we like buying stocks. You get more for your money there than you will get the dumbest investment, you know, in my view, is a longterm Government Bond. The dumbest investment. Great weekend. Always great bedtime reading on a friday when you know that letter is on its way. Dont you agree, guys . Common sense is so much fun. You sit there and think, heinz is good. I think heinz is a great company. Does he want to buy more companies . Yes, versus treasuries. Geico, he praised over and over again. Obviously we see geico constantly. They make a fortune so theyve got a lot of money coming in. Its about doing something with the money versus going to buy a business. Hes a buyer. I hope the chinese werent listening when he said dont buy u. S. Treasuries. Or i should say you want chinese which we will get to. I am being somewhat facetious. Its interesting, because its a point weve made many times here which is, how can you buy a treasury, the risk that youre potentially taking on if the economy does pick up steam. And we see that increasing in Interest Rates. Always interesting reading that the letter and as much more interesting listening to mr. Buffett. Sometimes i think we forget he runs an enormous company. The largest market Cap Companies in the country. In addition to being the oracle of omaha, and wanting to listen to him for stock advice. They own burlington northern. I know. Quarter of a million you can go over and over it again. He represents American Business basically and american finance. Berkshire was pointed to as performance, and for him a great barometer of the u. S. Stock market overall. Hitting a record high last week. That is really reflective of where the u. S. Stock market is going. Because of the diversity of Warren Buffetts portfolio. In talking about treasuries being the dumbest investment around, thats a judgment call on where he sees cash. Cash he would rather go buy an elephant, as opposed to having all that cash on the Balance Sheet. That is sort of a backhanded slap on apple, sitting on 137 billion in cash. Apple only down a little bit today. Its monday. Usually apple is down four or five. Tuesday its down three, four. Im trying to remember the pattern. Look, if they dont do anything, they have become the antibuffett. Dont cross the oracle of omaha, lightly. What theyre doing philosophically is crossing the omaha. The key to so much corporate activity in so many ways, if you have cash on your Balance Sheet, youre earning almost nothing. Comcast, our parent company, for example, deciding to buy what it didnt own of nbc, they do it now. Heinz, 3g saying, were willing to buy this company at 14 years worth of earnings, depreciation, amortization. Why . Because were going to get a decent return on that money. His argument is thats extrapolated to households, too. The best thing you can do right now is buy a new home, borrow, borrow, borrow, stretch it out 30 years. If youre in Corporate America right now, and you have a lot of cash trapped overseas, you may want to borrow here against that, and go out and buy something. Believe me, every banker is calling on people to say, do it now, youll never have lower Interest Rates. Werent you shocked that he didnt look at the futures and get negative . You come in and look at the futures and say, holy cow, i want to sell everything. He did not play that game. He was using common sense. He talked about physicists. Why is he so out of whack from what we see every day . I mean, come on. Vix jumped 5 . I didnt say him say risk on, risk off. What is with this dinosaur with the railroads. It amazes me hes not willing to play the on again, off again, buy call, sell call thing. He is so stuck in this world of making big money by buying stocks. He does buy companies. Buying stuff. The buy low, sell high thing, he doesnt have to sell high, he can hold on to it because hes so big. Isnt he a breath of fresh air like you cant believe . He is a breath of fresh air. You can buy Great American companies and make money and not worry about did he talk about the italian elections at all . He said he and munger have not talked macro to any substantial degree for decades. 30, 40, 50 years. He doesnt have time to lose money. Now, theres going to be some out there today, hes invited them to talk at the meeting today, what he calls the subpar performance. Once again, lower returns in the s p. One more year and he misses for five years in a row, something hes never done before. Look, hes got a big portfolio. His portfolio is very housing related, by the way. That could be coming back. Look, i felt that, yes, maybe he is underperforming, but his portfolio is uniquely set up for an american renaissance. Its entirely possible that he is in the sweet spot right now. Even if he wasnt before. A lot of it is predicated on the companies as opposed to the stock picking. Right. We tend to think of a wells fargo no longer from wells fargo around cocacola or ibm. Those have not done that well. Coke, pepsi. Look, we own the stock. You would . Yeah. Really . Would you own it five minutes from now . That depends on the futures. Jim, you asked him a question, specifically about nat gas, burlington northern, which buffett addressed with beck. The railroads are definitely experimenting with converting to natural gas. Its not a simple matter. And i cant tell you the technicalities of it. But its real enough so were spending real money. In fact, i think we ordered a couple of units that were working with. So when you get natural gas, 3. 50, and you look at where oil is, youve got to look at converting any kind of an engine to natural gas. I think that when you start hearing big industrialists, and im calling Warren Buffett an industrialist in light of the conversation here, switching to natural gas, you have jack welch talk about it on our network, many executives saying this disparity is too great, what that tells me is we have so much natural gas lack of an Energy Policy being made in washington, its going to be the markets that dictate it. Well, keystone on friday, the state department seemed to think theres no objections. Thats not about natural gas, though. Thats about oil. And thats not chinese oil. Whats heading to china, we dont take it. I was gratified to hear it. Because what happens is the railroads use theyre diesel. And the goal of any environmentalist should be to get rid of diesel. Because it is awful. Mayor bloomberg being the greatest environmentalist, hes a practical man. He is not trying to tilt hes not don ki yoquixote. Like buffett, clean up the skies, and use natural gas. Just get up, listen, feel great. This is better than the cnbc alarm clock. Wow, this man is not troubled by the problems. No. He just spent 340 million buying newspapers. That is, by the way thats pocket change. Literally pocket change for Warren Buffett. What did he say, his perspective is always interesting. His demeanor even when it comes to newspapers. Local is still important. If he still likes stocks and likes companies, shouldnt people at home like stocks and companies . Hes a thoughtful man. I like him. Lets talk about the markets overall as we start the week. The dow starting within 75 points of its alltime closing high. The markets are facing some headwinds. You have continued wrangling in washington over the sequester. Data showing the wealthy shouldering the load in consumer spending. Futures are lower after a selloff in the shanghai market after beijing announced new property buying restrictions. You add all these things together, jim, and you think slowing growth around the world. We also, of course, got the terrible pmis on friday which showed slowing in europe, across europe. The best performing groups, augmented by the purchase of heinz, are these companies that do really well in a slow economy. Kimberly, clorox, theyre very stretched on a valuation basis. When you look at campbells soup, youre talking about Companies Selling well above their historic level. Theres this notion these are the defensive areas of the market but stretch the on valuation. Does this make other sectors the new defensive sector that you need to be in this market environment . I like the housing sector better because of the lower Interest Rates. I think that these stocks will get look, that interview with becky quick was an important interview. I think people are now going to start saying it is going to be clorox, his next buy is going to be kimberly. He also said hes not about to pounce tomorrow. I would trim those, i dont want to sell them entirely, but you still get a 3 yield in kimberly which is better than in treasuries. But i do feel this trade has become, as you say, safety into momentum. And i dont like momentum with slow growing companies. And its where people want to be so badly. Yeah. Meantime, shares of yahoo moving higher in the premarket as well. Barclays saying the stakes in alibaba and yahoo japan are undervalued. Yahoo announcing its planning to discontinue seven of its products including the blackberry app. They have a Business Alliance to share and coproduce editorial contented. I think barclays goes to a 26 target. Then this issue of apps that are customed for the 10, jim. Seems like theres another one going away every day. I continue to be impressed with what shes doing. I think many thought yahoo was a great brand. Shes making it a great brand. Monetizing different things. I have been so impressed by this idea of, listen, youve got to stay at work. You cant be someone who isnt part of the culture. We need to reinvent yahoo . I think shes doing a remarkable job. I think shes leading, which i but thats new. Well, it is. I think well ill reserve judgment. On whether or not it works. Why . Because you are a skeptic by nature . Yes. Yeah, i am. By the way, to go into the point of the research reports, what you think alibaba is worth, what you think japan is worth, all fair points. And that continues to be valued. Lets see if and when we get an ipo from alibaba, and what its really worth. That will certainly be important. As to the core business of yahoo its being turned around starting this streak in 96, it would be fabulous to deal with the same person. I always find that, oh, that person left. Now that person left. Now that persons on leave. That person that alone would change how people view yahoo . Yeah. Stability. Stability, david. Im not a skeptic about stability. You and i are rock solid on that. Stability, right here. Weve got to cue that up next. What did you buy this weekend . Maybe its over. My father we got runts. I know you like runts, right . Nerds . These are candies. Fun dip. What else are you on right now, jim . I didnt get the juji fruits, because i have a dentist appointment on wednesday. I dont have to explain myself on that. Apple share prices suffer, tough session on friday. Samsung releasing this, a new teaser video for the galaxy 4. Could this change the Playing Field for mobile phones . One of the top analysts on how to play financials. How hes sneaking his way on the Conference Calls and a lot more, later on. Taking a look at futures. We have sold off on every monday so far this year. Although weve been up every friday. Interesting pattern. Were currently in the red. A lot more squawk on the street still to come. Here we are, me and you on the road and we know that it goes on and on [ female announcer ] youre the boss of your life. In charge of making memories and keeping promises. Ask your financial professional how lincoln financial can help you take charge of your future. Oh, oh, all the way oh, oh but we can still help you see your big picture. With the fidelity guided portfolio summary, you choose which accounts to track and use fidelitys analytics to spot trends, gain insights, and figure out what you want to do next. All in one place. Im Meredith Stoddard and i helped create the fidelity guided portfolio summary. Its one more innovative reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. Ap million falling in premarket after ending the week by hitting new 52week lows. The stock is 38 below the sppt highs. Samsung is upping the ante for the launch of the new galaxy s4 smart phone. March 14th, a lot of people say the competition is really going to start getting tough. Well, apple is just absent, because theyve got the cash hoard, and they can do something samsung has become the new favorite. Its interesting, the press has viewed it as being the underdog. Samsung worldwide is actually the big gun. Apple does not feel compelled to do anything in reaction to this. What people think, maybe apple doesnt feel that way, but i continue to think that samsung has the momentum. And apple seems to be trapped in a world where they think theyre king. And cash isnt king. And theyre not king. Those are harsh its reality. Wow, up a couple hundred. They still sell a lot of stuff. Look, im saying the perception. I still do not youll have to pry my cold dead hands away from my apple thats an nra plug there. Understood. Mossberg looking at apples cash saying they have enough to buy facebook, twitter, linkedin, pandora, yahoo all at once. Netflix, they should buy netflix. Sorry, pop, i couldnt get the netflix to work. Its on all your clickers now. These would all be a sign of a pulse. We need a pulse. Paddles. The stock doesnt have a pulse. The price action on friday was terrible. Stocks were close to new highs, struggle higher. Apple shares closed on a low of the session, new 52week low for apple. First of all, asking if you took a look at the chart and didnt know what stock it was, you would say, whats wrong with the stock. Making acquisition of some its not going to happen. Thats desperation. Why is it desperation to own how about come u another product that Everybody Loves and wants to use. At the same time, if you want to really have itv, if you own netflix, i think netflix is an undervalued story right now. You keep reading about, say, amc. What an amazing article this morning by david carr about amc and how when they realized you need netflix to get the back stories, you can get right into your favorites and mine, walking dead. Netflix is about a weeks cash for them. By the way, amazon should run netflix, not apple. Okay. So you want apple to come up with something. Im saying that apple could do something with its cash thats not that big. Buy netflix. And suddenly, all of a sudden they would own itv. Netflix is doing everything right. Content. Social media. We need a little social media would be good for apple. Twitter would be good. None of these are elephant acquisitions, these are mice for apples. Teeny tiny. They are. They are, but then but not what the company does. At least at this point. You like it when the company said theyre considering what to do with their cash . Theyve had a lot of time. They have. I assume well hear something one day. Presumably. I like to go out on a limb on that. One day we will hear something. But dont tell them when. Thats outside the Corporate Union parcific woud be outside the core. Opportunity now for a new trading week. Cramer is fired up. The mad dash is coming up next on this monday morning. Lets look at the futures. S p looking at a lower open, about four points. Much more squawk on the street straight ahead. [ woman ] if you have the audacity to believe your Financial Advisor should focus on your longterm goals, not their shortterm agenda. [ male announcer ] join the nearly 7 million investors who think like you do. Face time and think time make a difference. At edward jones, its how we make sense of investing. [ construction sounds ] [ watch ticking ] [ engine revs ] come in. Got the coffee. That was fast. Were outta here. [ engine revs ] im a conservative investor. But that doesnt mean i dont want to make money. I love making money. I try to be smart with my investments. I also try to keep my costs down. Whats your plan . Ishares. Low cost and tax efficient. Find out why nine out of ten large professional investors choose ishar