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

Canada Shooting

Canada Shooting

Attack on parliament, killing of soldier stun Canada's capital.  Full Article 

Earnings Season

Earnings Season

Wipro sees rosier end to year as U.S. clients spend.  Full Article 

Business Climate

Business Climate

Fears for tough penalties grow as India cleans up business  Full Article 

New Email Service

New Email Service

Google launches new email service dubbed "Inbox".  Full Article 

DLF Appeals

DLF Appeals

DLF seeks interim relief from capital market ban  Full Article 

Falling Oil Prices

Falling Oil Prices

Indian consumers respond to softer oil, food prices  Full Article 

Book Keeping

Book Keeping

RBI fires warning shots on companies' lack of FX hedging.  Full Article 

Policy Repo Rate

Policy Repo Rate

Most external members suggested rate cut in RBI's Sept review.  Full Article 

Reuters India Mobile

Reuters India Mobile

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