Abel airs Buffett's 1991 testimony to stress Berkshire integrity
Updated
Updated · Barron's · May 2
Abel airs Buffett's 1991 testimony to stress Berkshire integrity
6 articles · Updated · Barron's · May 2
At Berkshire's annual meeting, the CEO linked the clip to a January letter sent to 400,000 employees after he took over in January.
The video showed Buffett apologising to Congress after a Salomon Brothers trader broke Treasury auction rules and senior management covered it up, prompting the chief executive's resignation.
Buffett, who temporarily led Salomon during the scandal, told staff he could forgive losses but would be ruthless over any damage to the firm's reputation.
With Abel at the helm, how might Berkshire's fierce stance on integrity impact its investment strategy and long-term returns?
Could Berkshire's unwavering commitment to reputation ever limit innovation or risk-taking in its subsidiaries?