Munger: Zero Chance of Buffett’s Self-enrichment Via Trading

Warren Buffett - Apple AAPL

Charlie Munger, the Vice Chairman of Berkshire Hathaway (NYSE: BRK.A, BRK.B), has refuted claims that his colleague, Warren Buffett, was involved in personal stock trading prior to the company making similar investments.

In an interview with CNBC’s Becky Quick, 99-year-old Munger rejected the notion that Buffett was taking advantage of foreknowledge of Berkshire’s transactions for personal gain. He highlighted Buffett’s philanthropic activities and the significant portion of his wealth that is invested in Berkshire shares as evidence against these allegations.

In a strong defense of his associate, Charlie Munger stated his firm belief that Warren Buffett isn’t engaged in any nefarious activities to enrich himself. He emphasized that Buffett prioritizes the well-being of Berkshire over his personal finances.

“I don’t think there’s the slightest chance that Warren Buffett is doing something that is deeply evil to make money for himself. He cares more about what happens to Berkshire than he cares what happens to his own money,” Munger said.

According to a report by ProPublica on Nov. 9, it was alleged that Warren Buffett had conducted personal trades in a particular stock either just before or during the same quarter that his company, Berkshire Hathaway, was doing the same. This information came from leaked IRS data, as claimed by ProPublica. CNBC stressed however, that they have not been able to independently verify the timing of these trades.

The ProPublica article also suggested that Buffett made personal stock sales amounting to at least $466 million from 2000 to 2019. Despite this seemingly large figure, it represents only a minute fraction of Buffett’s total net worth. As per a securities filing from August, it was revealed that Buffett owns more than 218,000 Berkshire Hathaway A shares, a position valued at more than $100 billion.

As of Nov. 15, 2023, Warren Buffett’s net worth was estimated to be around $120 billion according to The Bloomberg Billionaires Index.

Disclaimer: This page contains affiliate links. If you choose to make a purchase after clicking a link, we may receive a commission at no additional cost to you. Thank you for your support!

Be the first to comment

Leave a Reply

Your email address will not be published.


This site uses Akismet to reduce spam. Learn how your comment data is processed.