Warren Buffett on Morning Joe - Minimum Tax, Confidence in America & Carol Loomis Book (2012)

Question about Warren's organizing principle given $65B net worth. Carol says money is absolutely nothing to him, always been driven. Got interested investing at 7-8, reading every book in dad's office and public library. First trade at 11. The game fascinated him - can play many different ways, can keep doing it when physical abilities fade. Born with right temperament, then started reading and never could get enough.

Right temperament for investing not like Hollywood portrayal (coke, throwing computers). During dot-com boom when people said Warren thing of the past with neighbor's portfolio up 48%, he could ignore it. Drives people crazy when neighbor getting rich, wives asking 'why aren't you doing that?' Doesn't bother Warren at all - knows what he's about. Times when approach won't work, other times works pretty well.

Black Monday 1987 Warren lost couple billion on paper. He and Carol with 50 people at Williamsburg meeting right as it happened. Next morning almost no conversation about it - very placid, almost nobody exercised. No jumping out of windows. Program went exactly as planned. Truth is when stocks go down, chance to buy them cheaper appeals to Warren.

After September 15, 2008 people needed Warren's help. Berkshire spent $16 billion in three weeks. There was panic, no question - dominoes were toppling. But Warren knew America was not going to disappear. Confidence in America while everyone else panicking.

During crisis people talked about Warren's confidence in America while everyone else talked about rising China and US collapse. Warren more bullish on America than ever. How can you be otherwise? Came through Civil War, two World Wars, Great Depression. This country works - look where we were in 1776 vs now. We've got a winning formula.

Warren makes case for minimum tax for wealthy. If he calls at 2am with greatest stock ever, you won't ask about tax rate on gain. Only in Grover Norquist's imagination does someone choose savings account at 0.25% over great investment due to taxes. Same point as Steve Ratner: Wall Street people never became less energetic because capital gains rate was 25% vs 15% vs 39.6%.

Joe asks if raising top rate to 39.6% is equitable when really rich guys say 'I'm never going to pay that' - would capital gains increase be better for income disparity? Warren: that's why minimum tax. Of 400 highest incomes in 2009 ($200M average), quarter paid under 15%, none paid 39.6%, six paid nothing (Romney's 47% moochers). Only way to get at them is minimum tax: 30% on income above $1M, 35% above $10M.

Joe shares discovery: making pretty good money, paying full 35%, guy said convert to capital gains and only pay 15%. Joe doesn't have accountants to figure that out. Warren says that's not right. Governor Romney paid 14%, Warren paid 16-17% - both would be paying 35% under Warren's minimum tax proposal.

Barnicle asks if Congress were private industry would Warren invest in it. Warren: I'd get new management. But wouldn't give up on country - it's wonderful country. 535 people aren't going to screw it up forever for 312 million. But they could screw it up momentarily.

Carol's book compiles Fortune articles 1966-2012. What struck her: Warren's consistency of thought. In 70s-80s as Grinnell College advisor, stood aside when Bob Noyce started Intel. Didn't say no, just said 'It's not for me, not something I understand.' 45 years ago, still like that today. Same behavior during bubble. Do what you know, sit back, look for value. If stock goes down buy more while most people panic.

Carol's husband met Warren first in 1967, came home saying 'I think I met smartest investor in United States.' Carol rolled her eyes - 'you know how husbands are always making these superlatives.' Then met Warren and his wife, realized this guy unlike anybody she'd ever met. But couldn't see where he'd go - $60B, huge rise in stock - absolutely not. Bought Berkshire Hathaway without inkling.