In the wake of ProPublica’s report on Warren Buffett’s personal stock trades, Charlie Munger, vice-chairman of Berkshire Hathaway, vehemently dismissed allegations that Buffett enriched himself at the expense of shareholders. Munger, in a recent CNBC interview, provided a robust defense of his long-time business partner.
Munger emphatically stated, “I don’t think there’s the slightest chance that Warren Buffett is doing something that’s deeply evil to make money for himself.” He emphasized Buffett’s prioritization of Berkshire Hathaway’s well-being over his personal fortune, highlighting Buffett’s commitment to donating the majority of his wealth to charitable causes.
Buffett, since 2006, has donated over half of his Berkshire stock, constituting over 99% of his net worth, to organizations such as the Bill & Melinda Gates Foundation and family foundations. Munger underscored the implausibility of the argument that Buffett would enrich himself at the expense of shareholders, deeming it “one more ridiculous thing that’s said about Berkshire.”
The ProPublica report, based on leaked IRS tax returns from 2000 to 2019, raised concerns about Buffett’s personal portfolio. It accused him of selling shares in Wells Fargo, Walmart, and Johnson & Johnson, collectively valued at $80 million, around the same time Berkshire was engaging in transactions with these stocks. ProPublica suggested that these trades might have violated Buffett’s own rules prohibiting employees with inside knowledge from trading relevant securities.
While Munger acknowledged not having read the ProPublica story, he staunchly defended Buffett’s ethical stance. The report also highlighted Buffett’s public statements about avoiding securities in his personal portfolio that Berkshire holds or is considering to prevent conflicts of interest. ProPublica estimated that Buffett personally sold nearly $500 million worth of shares and disposed of bonds over the 20-year period in question.
