According to various news sources Warren Buffett's Berkshire Hathaway bought a 1 billion USD stake in the gaming company Activision Blizzard months before the announcement that Microsoft Corp. is acquiring Activision for 68.7 billion USD.
I am a huge fan of Warren Buffett. He is my guru in terms of stocks investing. The above case with Activision Blizzard has the potential to literally destroy all of Warren Buffett's vast legacy in terms of investing. At 1 billion USD this could well make for the largest insider trading case in the history of the world. I must give Warren Buffett the benefit of the doubt that he knew nothing of the pending Microsoft Activision Blizzard merger announcement.
Warren Buffett has held an impeccable image of a honourable investor, a man of integrity. He never entered into any scandals, he avoided doing hostile takeovers and managed Berkshire Hathaway's portfolio of companies in a genius, brilliant way to create 700 billion USD of wealth - Berkshire Hathaway's market capitalisation as of today, the 24th of February 2022.
His only fault, as far as I am concerned, is that Warren Buffett's companies are cutting jobs easily when the economy turns or the investment is not so good as evidenced by Berkshire closing a shoe factory and Precision Castparts, one of Berkshire Hathaway's largest companies, decision to cut a third of its workforce, more than 10 thousand workers, after the coronavirus pandemic erupted.
So Warren Buffett's impeccable image has already been hurt immensely by the information that there is even possible insider trading done by his conglomerate Berkshire. As Buffett himself has said "it takes a lifetime to build a reputation and 15 minutes to destroy it."
Whatever happens, Warren Buffett's investing track record will ensure Buffett's legend will live on.
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