Berkshire Hathaway’s Vice Chairman Charlie Munger defended Warren Buffett against claims that he was involved in insider trading. Munger stated that the idea that Buffett was front-running Berkshire’s trades didn’t make sense, given Buffett’s charitable giving and majority of his wealth being tied up in Berkshire stock.
In response to a report by ProPublica, Munger told CNBC’s Becky Quick in an interview that Buffett cares more about what happens to Berkshire than his own money, and that he’s not doing anything “deeply evil” to make money for himself. The report alleged that Buffett made personal trades in a stock shortly before Berkshire made moves in the same security, but CNBC has not independently confirmed the timing of these trades.
ProPublica reported that Buffett made at least $466 million in personal stock sales between 2000 and 2019, however, this would represent a small percentage of his overall net worth. The leaked IRS data cited in the article raised questions about Buffett’s involvement in personal trades before Berkshire’s moves.
A filing from August revealed that Buffett owns over 200,000 Berkshire Hathaway A shares, which is valued at more than $100 billion. This information supports Munger’s claim that Buffett’s wealth is largely tied up in Berkshire stock, further undermining the allegations of insider trading.
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