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Thursday, July 9, 2009 11:34 AM
Buffett lunch: What has the winner won?
David Berman
As you’ve probably heard by now , a Canadian investment management firm has won a charity auction that gives up to eight executives and clients the opportunity of sharing lunch with Warren Buffett, the legendary investor and chairman of Berkshire Hathaway Inc. Salida Capital, based in Toronto, paid more than $1.6-million (U.S.) for the privilege.
Good for them, and the charity that ultimately receives the cash. Courtenay Wolfe, Salida’s president and chief executive, insists the lunch is not part of its marketing strategy, but you do have to wonder if you can possibly get any value out of such a lunch with a public figure who regularly shares his insights with viewers on CNBC . Does Mr. Buffett save his best material for charity lunches?
Mark McQueen , president and chief executive of Wellington Financial, wondered on his blog if Salida is spending its money wisely, given that the money used to buy lunch came from management fees.
“Those same management fees could be used to hire 10 or 15 researchers and fraud detection specialists to comb the books of dozens of companies looking for the next short – or a lunch with Warren,” he said. “Even if the lunch is used to entertain Salida’s largest limited partners, some might wonder if the quantum of management fees are really needed if there is enough left over for this kind of expense.”
“I’m all for [general partnerships] donating to charities – that’s something we do each and every year. But $1.68-million? It’ll just serve to confirm the suspicions of those institutional [limited partnerships] who think funds have become too large, and the fees too rich.”
