'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

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR