Warren Buffett it’s a investor American recognized as one of the most successful of all times. But not only that, since within the world of financeknew how to position himself as an example to follow when thinking how to invest.
However, this time the tycoon is in the news because he could have violated the ethical policies of Berkshire Hathaway, rules that he himself wrote. The suspicion is that, in some cases, Buffet would have traded in his personal name the same shares as the conglomerate of which he is executive director, as reported by ProPublica.
Over the years, the president and CEO of Berkshire Hathaway accumulated a great personal wealth through their investmentsso it is considered one of the richest men in the world.
Warren Buffett in a conflict of interest case?
In general, the world of finance closely follows the changes in the portfolio of the company led by Buffet, but the tycoon is always more reserved regarding your personal investments. However, on this occasion that information was revealed by the Internal Revenue Service (IRSby its acronym in English) of USA.
The data revealed shows that, in the last two decades, Buffett performed transactions in your personal wallet with the same companies as Berkshire Hathaway bought or sold, even doing so during the same quarter or the previous quarter.
According to what was published by ProPublica, the magnate would have won at least US$466 million in personal stock salesbetween 2000 and 2019.
One of the Berkshire ethics policies Maintains that All current and planned Berkshire securities transactions must be publicly disclosed before company employees can negotiate them in person..
In that sense, Buffett himself has expressed that he cannot buy what Berkshire is buying and that doing so would constitute a conflict of interests. Meanwhile, for the moment, Neither the company nor Warren Buffett himself expressed himself regarding the disclosed information.
What are the transactions that could complicate Buffet?
He April 24, 2009Buffett sold shares of Wells Fargo worth US$20 million in your personal account. According to the New York media, by then Berkshire was already a large shareholder of said company.
Another case that could cause problems for Buffett has to do with shares of Walmartso that in August 2009the businessman sold, in his personal name, US$25 million. That same quarter, Berkshire roughly doubled its stake in that company.
There was also a sale of papers Johnson & Johnsonby US$35 millionwhich could fall into a conflict of interests. For October 2012the month in which Buffett carried out the operation privately, the company he runs also carried out the same operation.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
