GHARIB: How are Berkshire's businesses doing so far this year?
MUNGER: Mixed. But the two biggest businesses, which are insurance and utilities, are flourishing. So I would say that even with all of the bad effects we've had, we're not catching our full share of the horror.
GHARIB: Some of Berkshire's investments are in financial stocks like American Express and Wells Fargo. Does it make sense to continue to hold on to these stocks? What's your outlook for the financials?
MUNGER: Well, I think the companies which we are invested have very respectable futures from this point forward. The financial world should be restructured so that these people who are too big to fail are not allowed to behave in such a gamey fashion. I'm pessimistic with the regulatory changes that come down. I'm afraid they won't be as severe as we need.
GHARIB: As an investment, investors should stay away from financials for now?
MUNGER: I didn't say that. We need the financials. We can't have a modern civilization without strong financial companies. But we don't need them as swashbuckling and as crazy and as venal as they've been.
GHARIB: Now I understand there are three candidates who are being considered to take over from Warren Buffett when the time comes. I know you're not going to tell me who they are. But what do you think is the most important characteristic for this job?
MUNGER: I don't think there's any one way that's the right way to run a corporation. Different people have different styles. Different people have different strengths. I am quite confident that Berkshire will be governed very well long after Warren and I are gone.
Thanks to Sanjeev Parsad from Corner of Berkshire and Fairfax for the original reference
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