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Interview day after Bin Laden killed. Buffett: 'Thought back to 9/11 and what happened then...that's the best headline we could have.' Markets up but not skyrocketing - 'I don't think this is a big market factor...the American people feel wonderful today all of us but in terms of earning power of American businesses...that factor should not change dramatically because of this but how we feel about the country and how we feel about what our government has accomplished...has changed dramatically.' Notes after 9/11 'whole country was worried there was going to be some kind of second attack' - dirty bomb concern in shareholder letter. 'I give credit to both administrations for the fact that we have gone a long long time without an attack...I'm sure a lot has taken place behind the scenes that has prevented that.'
First quarter 2011 'probably the second worst quarter in the history of the insurance business for natural catastrophes.' Japan earthquake 'huge,' New Zealand's 'second earthquake as it turned out...in the first quarter this year was even worse than the one last fall,' Australia had 'floods and cyclone.' Cost Berkshire 'close to $1.7 billion pre-tax in the first quarter.' Normally 'third quarter is the worst quarter for catastrophes' but hoping 'first quarter was the worst.' Doesn't expect retaliation insurance business from Bin Laden news - catastrophe frequency is 'big factor in insurance business.'
Very bullish on US economy this weekend. Recovery 'relatively slow...it came off an incredible shock but it's been quite steady.' On housing: 'When residential housing comes back and it will we have to work off an inventory' of excess houses. Excess came from 'building 2 million units and households were forming at the rate of a million a year...no surprise you have too many units.' Now 'building 500,000 plus a year and we're still forming a lot of households so the inventory is getting worked off.' Doesn't trust specific inventory figures but 'what I do believe is that the inventory is getting worked off.' In annual report said 'thought we'd be seeing it by the end of the year...seeing it would mean getting up to maybe the 650 or 700,000 level.' When hits 1 million 'you'll see effects way beyond just construction workers you'll see it in our carpet factories...furniture mart selling more furniture...lots of ripple effects.' Bought 'major brick company in Alabama not because we're selling any brick particularly this week or this month but we know over the next 10 years or 20 years...we have a lot of brick houses built in Alabama.'
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