Extended version of Charlie Munger’s last CNBC interview posted
|
It includes an additional hour of their conversation, featuring Munger’s recounting of the unlikely beginnings of Berkshire Hathaway’s massively profitable investment in BYD, the Chinese electric car maker that is challenging Tesla.
|
Berkshire’s countersuit against Haslams won’t go to trial next month
|
Lawyers for Berkshire Hathaway have declined a Delaware judge’s offer to have its countersuit against the Haslam family be heard at the same time as a court considers the Haslams’ original complaint against Berkshire.
That trial is scheduled for early January. Jimmy Haslam and his family accuse Berkshire of using an accounting maneuver to reduce what it would pay for the 20% of Pilot Travel Centers it hasn’t already purchased from the Haslams.
Under an earlier agreement, the price would be based on PTC’s earnings. The Haslams say Berkshire had PTC adopt “pushdown accounting” to “artificially” reduce the truck stop operator’s bottom line. They say the move will cost them more than a billion dollars if they exercise their annual option to force Berkshire to buy their remaining 20% stake.
|
Cleveland Browns owner Jimmy Haslam reacts during the December 3 game against the Los Angeles Rams at SoFi Stadium in Inglewood, CA. Photo: USA TODAY Sports via Reuters | Kirby Lee
|
Berkshire contends Jimmy Haslam, who is also the owner of the Cleveland Browns NFL team, tried to boost PTC’s earnings, and the stake’s price, by offering executives secret payments to encourage them to inflate profits now at the expense of long-term stability and profitability.
Berkshire asked that the cases be heard at the same time, and a judge agreed, but only if the company didn’t seek evidence from the Haslams beyond what it would need to defend itself against the family’s claims.
That was too much for Berkshire. Early this week, it turned down the offer “given the uncertainty in the amount and type of evidence that will be allowed.”
A trial date has not yet been set for Berkshire’s counterclaim.
|
BUFFETT AND MUNGER AROUND THE INTERNET
Some links may require a subscription
|
