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"The pursuit of the uneatable by the unspeakable"

Buffett & Munger2014-05-03videoOpen original ↗

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SpeakersWarren2
WarrenI think generally speaking that the, you know, the activist, if they get the price of the stock up one way or another, you know, that's going to end their interest in the business. So I don't think they're looking for often they're not looking for permanent changes for the better in the business, but they're looking for a specific event that will result in a big price change. And they're certainly attracting more and more money. In other words, the funds flowing to activist hedge funds and so on is multiply them, I'm sure, by a significant factor. And that means they can play the game on a bigger scale. And anything in Wall Street that looks like it's successful will generate a funds flow that will go on until it's no longer successful.
WarrenWell, you're right that the activism is causing more of a stir in corporate management than anything has in years. Practically nobody feels immune. When an activist comes into a company, 20 or 30% of the stock can change hands rather rapidly in a management that seemed entrenched as suddenly is threatened. And of course, that sort of thing causes us a lot of anguish. And on the other side, the active is by and large, we're making a fair amount of money. And of course, in the culture we live in, most people don't care how the money is earned. They just care whether they get it or not. And so that just grows like some, the beanstock of Jack. And so I think we have a very significant effect. And some of the stuff, you'll find an activist who is not what you'd want to marry into the family, going after a company you would never buy into. And when that happens, it reminds me of Oscar Wilde's definition of fox hunting. Said the pursuit of the uneatable by the unspeakable.