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Berkshire Weekend: Buffett Quote on Evaluating Banks

|Includes: Berkshire Hathaway Inc (BRK.A), BRK.B

Bloomberg quotes Buffett on how he evaluates banks versus how regulators look at banks:

“With banking, low cost money is the key,” Buffett said. “My guess is that would not be weighted like a whole bunch of little ratios of this or that.”

“If you are producing your money currently at roughly 1 percent, which the best of them is, and somebody else is producing it at 2 percent, that’s exactly like a copper mine that has a $1 a pound cost versus a $2 a pound cost,” Buffett said. “That’s hugely important over time.”