'Berkshire Bear' Kass Doesn't Convince Buffett

May 6 2013 | 1:42pm ET

Warren Buffett did not appear especially impressed by his designated bear, Seabreeze Partners Management's Douglas Kass, at Berkshire Hathaway's annual meeting this weekend.

Buffett tapped Kass to serve as one of his three interrogators on Saturday, an event widely known as "Buffettstock" in Omaha, Neb. But Kass' negativity about Berkshire didn't make Buffett flinch.

Indeed, Buffett's number two, Charlie Munger, chided Kass, saying he could "make the short-seller's argument even better than he did."

Kass said that Berkshire was in danger of becoming an index fund due to its sheer size, forcing it to hunt "elephants" rather than "gazelles." He also said he fears that the 82-year-old Buffett's successors won't enjoy the same advantages.

To the first criticism, Buffett acknowledged that Berkshire will not grow as much as it has in the past, but that it will still generate value. To the second, he said Berkshire's brand will supplant his own when he finally retires.

"You haven't convinced me to sell the stock yet, Doug," Buffett said. "Keep trying."


In Depth

Change In 'Accredited Investor' Definition Could Hurt Crowdfunding Space

Jul 25 2014 | 8:14am ET

The Securities and Exchange Commission is considering changes to its 30-year-old...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note