Warren Buffett blasted CNBC for calling him a “hypocrite” over this week’s stock buyback. (AP)
Warren Buffett’s kids may be grown, but he can still give a good spanking.
The “Oracle of Omaha” sent a terse e-mail to editors at CNBC yesterday after a reporter for the cable news network railed against his recent repurchase of Berkshire Hathaway shares.
Gary Kaminsky, CNBC’s capital markets editor, took Buffett to task for the $1.2 billion stock buyback, calling it “hypocritical to the maximum level.”
Kaminsky claimed that Buffett’s purchase allowed the seller — described by Berkshire as the “estate of a long-time shareholder” — to avoid potentially higher capital gains taxes next year.
“Given the fact that he took out one of the early investors in this stock before the capital gains tax goes up … I mean, really?” Kaminsky said on air.
“This was a clear, clear violation of that so-called Nancy Pelosi let’s-try-to- tax-the-wealthy-people-as-much-as-we-possibly-can.”
Buffett has been a vocal advocate for raising taxes on the richest Americans and has tried to refute the argument that raising the capital gains tax will dampen investment.
In his rebuttal e-mail, a copy of which was provided to The Post by hedge-fund manager Whitney Tilson, Buffett said capital gains taxes don’t apply to estates.
“Mr. Kaminsky also made the statement that the estate that was a seller was better off by selling in 2012 than 2013,” he wrote. “This, too, was incorrect.”
He said capital gains are wiped out by stepped-up basis rules, with assets marked at their current fair-market value at the time of death.
Buffett also blasted Kaminsky for saying his buyback was hypocritical on principal as Buffett is known to eschew buybacks.
Buffett attached a copy of Berkshire’s 1984 annual report showing he has outlined conditions under which he would favor buybacks.
CNBC anchor Melissa Lee read a correction late Tuesday that thanked the famed investor for “watching and setting us straight.”