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Buffett Says Skip Paying Wall Street for Advice on Activists

Berkshire CEO: It's better to deliver results, communicate
He says activists are now targeting well-run companies

Warren Buffett, chairman and chief executive officer of Berkshire Hathaway. — Warren Buffett, chairman and chief executive officer of Berkshire Hathaway.
Photographer: Scott Eells/Bloomberg

By

Noah Buhayar and

October 13, 2015, 4:08 PM UTCUpdated onOctober 13, 2015, 5:43 PM UTC

Warren Buffett, the billionaire chief executive officer of Berkshire Hathaway Inc., said corporate executives who are seeking to fend off activist investors should return to the basics and consider skipping strategies pitched by Wall Street.

“The best way to keep activists away is to perform reasonably well in your business and also to communicate well with your shareholders,” Buffett said Tuesday at Fortune’s Most Powerful Women Summit in Washington. “You’ve got a bunch of owners out there and, on balance, they’re going to be on your side. After all, they’ve got their money with you.”