Buffett: Wal-Mart may have made a mistake in Mexico

OMAHA, Nebraska Sat May 5, 2012 11:47pm IST

Warren Buffett sings with University of Nebraska cheerleaders during the Berkshire Hathaway Annual shareholders meeting in Omaha, May 5, 2012. REUTERS/Lane Hickenbottom

Warren Buffett sings with University of Nebraska cheerleaders during the Berkshire Hathaway Annual shareholders meeting in Omaha, May 5, 2012.

Credit: Reuters/Lane Hickenbottom

Related Topics

Stocks

   

OMAHA, Nebraska (Reuters) - Warren Buffett on Saturday told Berkshire Hathaway Inc shareholders that he has not changed his opinion about Wal-Mart Stores Inc or its earnings power, but that the world's largest retailer "may well have made a mistake" in handling a Mexico bribery scandal.

Wal-Mart is one of Berkshire's largest common stock holdings. As of December 31, Berkshire's 39.04 million share stake in the retailer was worth about $2.33 billion.

Last month, the New York Times reported that Wal-Mart de Mexico, which is 69 percent owned by Wal-Mart, in the last decade orchestrated a widespread bribery campaign to win market dominance, and that senior Wal-Mart executives knew about the matter and tried to cover it up.

If the allegations are true, then Wal-mart may have violated the U.S. Foreign Corrupt Practices Act, which forbids bribes to foreign government officials.

(Reporting By Ben Berkowitz in Omaha; Additional reporting and writing by Jonathan Stempel in New York; Editing by Bernard Orr)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Press Event

Press Event

Modi takes tea, but no questions, in first press event as PM.  Full Article 

Monetary Policy

Monetary Policy

Finance Minister Arun Jaitley favours interest rate cut - paper  Full Article 

Sundar Pichai Elevated

Sundar Pichai Elevated

Google's Pichai to oversee major products and services.  Full Article 

Reuters Poll

Reuters Poll

India's growth pace to pick up as reforms draw investment   Full Article 

Need For Reforms

Need For Reforms

Euro zone risks "relapse into recession" without structural reforms - Draghi.  Full Article 

Diwali Sales

Diwali Sales

Gold sales jump about 20 pct for Diwali - trade body  Full Article 

World Bank Rival

World Bank Rival

Three major nations absent as China launches W.Bank rival in Asia  Full Article 

Health Of Lenders

Health Of Lenders

25 European banks set to fail health checks - sources.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage