Buffett graces Squawk Box

Appearing on CNBC following this weekend's release of Berkshire Hathaway (BRK.A, BRK.B) earnings and his annual letter, Warren Buffett tells the gang the U.S. economy continues to grow steadily and he prefers to hold stocks forever, but would sell shares in order to buy big businesses that could remain a permanent part of Berkshire.

In other tidbits, the Oracle says the Keystone pipeline is a good idea for the country and he repeats his warning of a decade-long pension crisis in the country.

And where will his wife's money be invested should Buffett meet his demise before her: "My advice to the trustee could not be more simple: Put 10 percent of the cash in short-term government bonds and 90 percent in very low-cost S&P 500 index fund.” Average investors, he says, will see higher returns in a low-cost index fund than those achieved by most others - be they pension funds, institutions, or individuals - who pay for high-fee managers.

A simplified reason for bubble worry, says the FT's James Mackintosh: Buffett underperformed the S&P 500 last year by the most since 1999.

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