Warren Buffett Fox Business Interview - Mortgage Deduction, Housing & Succession

Asked about scaling back or eliminating mortgage interest deduction: unlikely in isolation, would only be part of enormous tax package. Big constituency defends it. Despite Berkshire's housing interests (Benjamin Moore paint, Shaw carpet, Acme brick), wouldn't lobby. Key: if eliminate deductions, might lower rates - must evaluate total package. Impact on housing depends on what it's combined with.

Housing investment advice consistent with year ago: very good investment IF (1) know you'll live in locale considerable period, (2) find house you like, (3) take out very long-term mortgage. Still attractive today but not quite as much as year ago. Critical caveat: only if keeping long time. Fed's low rates helping affordability.

Fed easing policy assessment: doesn't know how long they can continue. Surprised how long done already with no inflation. Has expected inflation for some time but been wrong. Concerns: (1) if keep building Fed balance sheet and bank reserves, (2) interesting question how reverse it, (3) thinks has inflationary consequences down road but admits been wrong. Maybe problem for next Fed chair. If were president, would keep Bernanke.

Board meeting discussion: succession is main issue, always discussed. Have 100% agreement on successor if Buffett dies tonight. Multiple qualified candidates but #1 is unanimous choice. New board member Meryl Witmer (first interview) joining discussion. Won't name publicly - not discussed outside board. Analogy: has $50B in 4 companies (Wells Fargo, American Express, IBM, Coca-Cola), doesn't know who next CEOs will be and never has - invests based on businesses not succession plans.