CNBC VIDEO: Warren Buffett to CNBC: Economy Showing Signs of 'Real Strength'

Published: Monday, 3 May 2010 | 8:41 AM ET

By: Alex Crippen
Executive Producer

Warren Buffett tells CNBC the U.S. economy has started to show signs of "real strength" in March and April, and it's not just companies replenishing their inventories.

Buffett says there's been an increase in manufacturing activity and some improvement in consumer demand as people regain confidence.

"We're glad we have inventory because it's been flying out the door."

He says Berkshire Hathaway is a "net hiring" right now, and that's happening because there is renewed demand for the products its subsidiaries make.

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• Watch the 2008 Becky Quick post-Berkshire Annual Meeting Interview
  

But he notes that Berkshire's residential housing businesses are lagging, due to a hangover of demand in that market. He thinks that housing inventory will be gone within a year.

OMAHA 2010

Current DateTime: 10:02:25 03 May 2010
LinksList Documentid: 36876148

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Buffett again warns that the U.S. government will need to reduce its enormous deficits and says the country faces potentially significant inflation in the years to come.

As for the national debt problems in Europe, Buffett says he doesn't know "how that will turn out" but it is an "interesting movie to watch."

Still, he says, "I don't like betting on the future purchasing power of any currency."

Buffett was interviewed live on Squawk Box by Becky Quick in a Burlington Northern dining car after this weekend's Berkshire Hathaway shareholders meeting drew over 40,000 people to Omaha.

Current Berkshire stock prices:

Class B: [BRK.B 78.16 1.16 (+1.51%) ]

Class A: [BRK.A 117264.0 1939.00 (+1.68%) ]

Watch the 2009 Becky Quick post-Berkshire Annual Meeting Interview
Watch the 2008 Becky Quick post-Berkshire Annual Meeting Interview

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Download the 2009 Warren Buffett Letter & 2009 Annual Report to Berkshire Hathaway Shareholders
Download the 1977 - 2009 Warren Buffett Letter's to Berkshire Hathaway Shareholders

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