We don’t hear a lot from Warren Buffett’s partner at Berkshire Hathaway, Charlie Munger, but when we do it’s always colourful.
Wednesday the 90 year-old investor’s words were directed at accounting firm Ernst & Young, the auditor of his company, publisher Daily Journal Corp.
Bloomberg reports that Munger dismissed their work with one succinct comparison.
“They were like the doctor who wanted to cure the nosebleed by fishing around in the groin,” he said Wednesday at the Daily Journal’s annual meeting.
Ernst & Young said there were issues with the accounting for acquisitions and deferred tax
provisions. Apparently Munger disagreed. Because of issues with financial reporting, the company’s annual report for the year ending September 30th wasn’t released until June 24th.
In the midst of all that, Daily Journal replaced Ernst & Young with BDO.
So it seems Munger won’t be prodded any more.