Warren Buffett, Charlie Munger, Bill Gates, Sue Decker - Fox Business Interview on Boards, Yahoo-Microsoft, Books & Legacy

Sue Decker, former Yahoo CEO and Berkshire board member, defends Warren's handling of David Sokol controversy. She emphasizes Buffett's high value on putting out all information known at the time, as he knows it. After the audit committee report, Decker acknowledges the press release would probably be different in content and tone based on what was learned. She notes she's never seen an internal audit committee report made public like that, and believes it served investors well despite showing 'the making of the sausage.'

Decker explains board responsibilities are similar across all public companies: succession planning and capital allocation decisions. She notes Warren's exceptional track record in capital allocation is one of Berkshire's core competitive advantages. The company is decentralized in operations but centralized in capital allocation approach, with 'the world's expert in allocating that capital.' While board members ask questions, they have tremendous confidence in his decisions.

Munger characteristically blunt: 'There's a lot wrong with boardroom culture in our civilization as it works.' He says Sue has a very unusual position because if he were to name three companies where board membership would really be a privilege, it would be Costco, Intel, and Berkshire - 'every one of those companies is a miracle.' He suggests the Microsoft board (where Gates sits) is 'harder duty' with harder problems to solve.

Sue Decker directly asked if Yahoo should have teamed up with Microsoft when it had the chance. Her answer: 'Yeah, absolutely. I think it was a mistake that the merger was not effected, was a mistake for Yahoo shareholders.' Gates responds diplomatically that the companies are now doing a lot together through a business deal, combining strengths of Yahoo and Microsoft. He frames the partnership as giving them a chance of competing with Google and making sure 'they don't get too lazy.'

Claman asks each for a book recommendation. Gates recommends 'Getting Better' by Charles Kenny about improving poor countries - 'fantastic way of looking at what's happened over last 50 years,' taking the debate beyond 'aid is totally good' vs 'aid is totally waste.' Decker picks the same topic, discussing her work on Save the Children board and learning about investments that have exit strategies so countries can sustain them. Munger recommends 'In the Plex' about Google despite saying 'we're never going there, that's not our medium' - praises the author as 'exceptionally good reporter.' Warren gives different answer: the 69 pledge letters at givingpledge.org - '69 great human stories about how people have come to the views they have about philanthropy and what they owe this country.'

Asked about legacy, Charlie delivers classic Munger humor: 'Let me be remembered for extreme old age.' He jokes that both he and Warren would like the Forbes 400 to be the 400 oldest people, with both on the list, but clarifies 'hold in good shape - I'm not particularly interested in lying there with a tube in me.' Warren adds 'I'll still console him though.' On leaving fortunes, Munger articulates his philosophy: 'The idea of life is a fortune honestly gained and fairly used. That's the way to live a life.' Warren simply agrees.

Asked about prospects despite DC vitriol, Gates enthusiastically says 'absolutely - innovation is on the march,' citing tech, robots, medicine, new materials to solve problems 'even of the poorest in the world.' Decker agrees, noting there may be a period of slowdown as 'the foot comes off the accelerator on fiscal and monetary policy' to get finances in order, but 'we have this inexorable force of capitalism beneath us propelling us forward.' Buffett delivers signature optimism: 'The luckiest person in the world is a healthy baby being born in the United States today. He or she will live so much better in so many ways 20, 30, 50 years from now than we live now, just as we live better than John D. Rockefeller lived. This country's potential has not been fully utilized or anything close to that.'

Final question to Charlie: Do you still wake up every morning looking for companies to buy no matter the atmosphere? His answer reveals his mindset: 'I find plenty to occupy me and I find that there are plenty of things that I don't know now, and I find that hugely enjoyable.' Buffett adds admiringly: 'Charlie gets smarter every day.' Interview closes with thanks from Liz Claman to 'the richest minds' - Warren Buffett, Charlie Munger, Sue Decker, and Bill Gates.