Bill Gates & Warren Buffett - Charlie Rose Interview on Friendship, Philanthropy & Future

Buffett and Gates met July 5, 1991 - Bill reluctant at first, convinced by mother. Giving Pledge exceeded expectations: hoped for 30-40, now 156+ members extending beyond US. Buffett pledged bulk of wealth to Gates Foundation 2006, given $24B+ since. Partnership based on 'complementary strengths with shared goals' - younger, brighter, harder-working team on same track.

Buffett credits first wife Susie with transforming him: 'I was a mess...very lopsided not well-adjusted person who happened to be very good at one thing.' She 'put me together...had that little sprinkling can.' Married when she was 19, he 21, but 'I was about 12 emotionally.' Took time but 'changed my life...would not have had anything like the life I had' without her. Died 2004, leading to 2006 Gates Foundation pledge.

Buffett describes 57-58 year Munger partnership: 'extremely wise...wonderful friend...strong-minded' both but 'never had an argument...that's absolutely true.' When disagree, Charlie ends with 'you'll end up agreeing with me because you're smart and I'm right.' Buffett can't attack that logic. More fun with partners - even if doubled results alone, 'been more fun doing it with Charlie.' Respects Charlie's opinion 'enormously.'

Gates revelatory moment: Buffett showed him calendar. Gates 'had every minute packed...thought that was the only way.' Warren 'has days that there's nothing' scheduled. Shows April week with three entries (will be four: 'file taxes'). Philosophy: 'sitting and thinking may be much higher priority than normal CEO...not a proxy of your seriousness that you filled every minute.' Time 'most precious thing...can't buy more time.'

Buffett explains 2% growth power: with <1% population growth, 2% GDP growth over 25 years adds $19K per capita = $76K more real GDP per family of four. 'We are going to have more and the golden goose is going to keep laying more golden eggs...wonderful system.' Question isn't whether we'll have more - 'question is what we do with it.' Two percent 'will produce miracles' - three percent would be 'fabulous' but not necessary.

Buffett's immigration argument: August 1939 Einstein-Szilard letter to FDR warning Germany getting atom bomb, urging Manhattan Project - 'second most important document' after Declaration/Constitution. 'They may have saved this country' - if Hitler not anti-Semitic or if they hadn't immigrated to US, Germany might have gotten bomb first. Gates agrees: 'most important import the US has ever had by far is human talent.'

Both emphasize existential threats. Buffett: 'only real cloud on America' - not economy but WMDs. People exist wanting to kill millions with 'knowledge, material, and deliverability.' Gates adds bioterrorism (smallpox reconstruction 'could kill billions') and cyber (disrupting electricity/communications/banks/hospitals/airlines). Need surveillance, vaccines, duplicates, backups. Buffett: 'perpetual vigilance' required now and for centuries. Einstein: 'World War IV fought with sticks and stones.'

Buffett explains trade paradox: benefits 'diffused and invisible' (320M buying cheaper goods) but harm 'specific and terrible' (25-year worker loses job when too late to retrain). Berkshire textile workers: half spoke only Portuguese, worked hot/loud looms 20-25 years - when textiles moved 'economic lives were ruined...they're the roadkill.' Solution: 'keep trade benefits everybody...take care of people getting hurt because we've got the resources.' Not retraining when infeasible but income support.

Buffett explains inequality mechanism: Forbes 400 wealth grew 25x ($93B→$2.4T) in 35 years while median incomes stagnant. Specialized economy creates winner-take-all: top middleweight earns millions (TV/cable/PPV), 45th best same as 1930s. 'Market system is terrific cop...directs resources and brains' but 'continuously favor more people at the top.' Government must redistribute via EITC without 'killing golden goose.' 1800 strong farmer worth 90% of best - that differential keeps widening.

Buffett's primary policy prescription: 'change earned income tax credit big time.' Acknowledges market rewards him enormously but 'I am where I am not by myself...320 million Americans...crosses over Normandy.' 'Nothing wrong with market rewarding those who make life better for millions' but 'got to take care of people that don't fit well.' Education alone can't solve - government must redistribute while keeping incentive to innovate. Market leaves people behind - can't be solved 'simply by education.'

Buffett's life success metric at 86: 'never seen anybody...who felt good about their children that felt bad about their life' regardless of economic circumstances. Conversely, 'seen plenty with lots of money where it hasn't worked out well in family' - 'they failed at most important teaching job.' Example: rich father made kids sign tax returns blind annually so they wouldn't know their wealth - 'it's just crazy.' If kids become who you love and love you back, 'they felt good about what they...brought them into the world.'