WEB Interview by CNBC's Squawkbox August 22, 2008

Six part series of a 3 hour interview with Warren Buffett.

http://www.cnbc.com/id/26337298/site/14081545/

Topics discussed:
1. US Housing sector
2. US Financials
3. Sovereign Wealth Funds
4. US Railroad sector

Berkshire Q2 Results

With very limited exceptions, gains or losses from marketable securities are recorded only upon sale. Berkshire has large amounts of unrealized gains, and sales are never made with an eye to their effect on reported earnings. During the first six months of 2008, our unrealized gains fell by $10.7 billion (leaving us a total of $21.1 billion in unrealized gains at the end of June). That decline of $10.7 billion does not show in our reported earnings. What is included is a realized gain: $361 million pre-tax and $235 million after-tax.

Value Style? Legg Mason Value Trust

Legg Mason Value Trust which is run by Bill Miller had an enviable investment track record of over 15 years until about 2 years ago. The fund beat the S&P index every year from 1990 to 2005. Significant mistakes including an investment in Freddie Mac have caused material losses.

3 companies in the Top 10 holdings of this fund are in the Internet industry: Amazon, eBay and Google.

WEB can't value Internet businesses.