Hedge fund manager Loeb criticizes Warren Buffett for being hypocrite
On Wednesday, Hedge fund mogul Daniel Loeb called beloved billionaire Warren Buffett a hypocrite and claimed that he doesn’t practice what he preaches.
Buffett has been running conglomerate Berkshire Hathaway for 50 years. Less than one week after Buffett hosted his company's shareholder meeting in Omaha, Loeb made the comments at the SkyBridge Alternatives Conference, known as SALT in Las Vegas.
He commented on Buffett, who is the world’s most famous, and widely admired, investor. Loeb runs $17.5 billion hedge fund Third Point and is known in investment circles for his sharp tongue and top returns.
He said, “I love how he criticizes hedge funds yet he really had the first hedge fund. He criticizes activists but he was the first activist”.
Loeb mentioned that he enjoys reading Buffett’s Berkshire Hathaway annual letters. However, he said that Buffett hardly does what he utters. This drew loud applause from the hedge fund industry crowd.
In order to make his point, Loeb cited taxes, hedge funds, and activist investing as issues where major difference was found between what Buffett says and what he does. He said that Buffett criticizes hedge funds, but he used to run one.
Loeb also added that although he criticizes activists, he was the first activist. He urges everyone to pay taxes but avoids paying them himself.
An awkward moment was created on the stage though Loeb’s Buffett comments. Anthony Scaramucci, whose fund-of-fund firm SkyBridge Investments runs the SALT investment conference remarked that his chances of having Buffett at SALT next year were shot.
Buffett has been under fire recently. He was subjected to a number of pointed questions about Berkshire’s actions in the past year at Berkshire’s annual shareholders meeting.
Lending habits of his Berkshire unit that manufactures mobile homes was also under probe by The Seattle Times and the Center for Public Integrity.