Warren Buffett on Wealth Inequality, Market System & Investment Advice

Buffett discusses America's remarkable economic growth, noting GDP per capita has increased 6x in real terms during his lifetime. He emphasizes the U.S. remains a very rich country at $52,000 GDP per capita and expresses optimism that the country will continue doing better 10, 20, and 30 years from now.

Buffett acknowledges the troubling trend of wealth concentration. The Forbes 400's aggregate net worth reached $2 trillion, up 21-22x since 1982, while the middle class has not experienced similar gains. He notes more of the national pie has moved to the ultra-rich and away from the middle class.

Buffett explains inequality as a natural consequence of an increasingly specialized market system. While praising the market system for producing goods and services efficiently, he acknowledges it leaves behind people whose skills aren't well adapted to the market.

Addressing record-low investor trust despite all-time market highs, Buffett argues investors are wrong to lose faith. He equates trust in stocks with trust in American business, which has performed very well long-term. While acknowledging short-term unpredictability, he's confident stock owners will do well over 10, 20, and 30 year periods.

Buffett discusses corporate America's role in economic recovery, noting businesses naturally want to grow and are making investments. Berkshire spent $11 billion on plant and equipment and will spend more. He cites the railroad carrying more goods as evidence of steady economic progress since fall 2009.

Buffett strongly endorses buying a home for those planning to stay in an area long-term, calling his own home purchase 55-56 years ago one of his best investments. He emphasizes today's buyers get a terrific deal on mortgages with very cheap money, but cautions against buying with intent to flip in 1-2 years.

Fun segment revealing Buffett's low-tech lifestyle: uses a flip phone, doesn't tweet personally, buys books on Amazon through his assistant, carries $500+ cash, predicts cash will remain for decades, and would choose lunch with Mark Cuban over Mark Zuckerberg because he'd understand more of the conversation.