There’s been a bit of misunderstanding between two heavyweights in the financial sphere as news went viral with Carl Icahn’s statement claiming Warren Buffet should have done a lot more, as presented by Bloomberg. Icahn Enterprises LP (NASDAQ:IEP)’s founder also stated that Mr. Buffett should have held a stronger grip on the mediocre CEOs that run badly many American companies. It’s not surprising that everything evened out shortly after and soon enough the whole story will be hopefully forgotten.
“Carl was not coming at Warren Buffett. Listen, Warren Buffett’s made an extraordinary amount of money for himself, for his shareholders. Carl doesn’t dispute that, but you know, he does think he’s a bit of a white knight in terms of activism in calling for better corporate governance,” informed Stephanie Ruhle.
In the notorious interview, it can be understood that there was no aggression or any form of negativity in Carl Icahn’s speech. His opinion relied very much on the supposition that under-performance should be punished and this particular way of doing business requires a more energetic implication from the investor’s part.
“Carl himself said his mother believes he has some sort of warrior spirit and in another lifetime he would have been a warrior. Though, when I asked him if he had to start all over again what would he have done when he grew up. […] Philosopher, Carl Icahn a philosopher,” said Stephanie Ruhle.
Warren Buffet obviously feels no need to be as someone else believes he should, because he is doing a wonderful job whether we call him white knight, activist investor or Warren Edward Buffett. His methodology, although a bit less severe as Carl Icahn believes it ought to be, pleases shareholders and gives the needed returns for his Berkshire Hathaway Inc. (NYSE:BRK.A).
It’s probably best to have a bit of both activist strategies as these will inspire a whole new generation of investors that will have the choice between the two options available.
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