1995: Why has Munger been selling his Berkshire stock?

AUDIENCE MEMBER: Hi, Rob Pitts, shareholder from New York City.

This is a question for Mr. Munger. I’ve noticed, in the insider sales activity sheets, that you’ve been a rather consistent seller of your Berkshire stock over the last few months.

Wondered if you would comment on why you’re doing this, especially in light of the prospective tax change in capital gains, where it might be reduced, which would obviously be beneficial to you and beneficial to Berkshire by reducing its deferred tax liability?

CHARLIE MUNGER: I’ve given away a fair amount of Berkshire in the last couple of years and I’ve also sold some. I gave away the Berkshire because I thought it was the right way to behave, and I sold some because I had uses for the money. (Laughter and applause)

WARREN BUFFETT: He doesn’t know anything I don’t know. I (Inaudible) it’s selling, I’d checked that, but — (Laughter)