Meet John Freund: Warren Buffett's Broker Of 30 Years And The Citi Banker Who Alerted Him To Sokol's Deception (2024)
John Freund is not just Warren Buffett's broker of 30 years.
We learned from the damning report released by Berkshire's audit committee that Buffett had realized something wasn't quite right about David Sokol's Lubrizol holdings after a Citi banker mentioned Citi's role in bringing the chemical company to Sokol's attention.
According to the Berkshire report, Sokol was deliberately vague on how he came to own Lubrizol stock; when he discussed the company with Buffett, he never articulated that he had only bought the shares after meeting with Citi bankers it alleges.
But official Citibank and Lubrizolaccounts of the merger discussions show that Sokol had only purchased shares in the chemical company after a series of discussions, in which it was quite clear that Lubrizol was a Berkshire target.
As a reminder: On March 14 this year, Berkshire and Lubrizol announced they were joining hands. A Citi banker with whom Berkshire had worked -- John Freund -- naturally congratulated Buffett on the deal. In their chat, Freund mentioned to Buffett that it was Citi that "had brought Lubrizol to Mr. Sokol’s attention."
That "was the first time" Buffett was made aware that "investment bankers played any role in introducing Lubrizol to Mr. Sokol," and the Berkshire chief realizedthat that story "did not square with Mr. Sokol’s remark in January that he had come to know Lubrizol by owning the stock." So he acted.
So who is John Freund?
Related story
For someone that's Warren Buffett's broker, he's got a pretty low online presence -- spare video interviews on being: Buffett's broker. (When asked how he managed to become the broker to the legendary Buffett, Freund answers humbly: "By luck.")
His official title is Managing Director of Institutional Investment and Equity Sales and he began his career with Salomon Brothers in 1970 in the firm's St Louis office, which covered Omaha.
Freund then moved to Chicago in 1974 and three years later, Saloman's St Louis shop shuttered -- Freund then absorbed the Omaha clients.
Of course at that point, Buffett wasn't heavily into the equities game. Buffett became more "busy" in equities beginning in '86,'87, Freund said.
"I got reintroduced to Warren by a mutual friend who thought we should be talking more and I picked up coverage of Warren... I've been talking to him ever since," he told Fox News.
Freund and Buffett talk "morning, noon and night" -- often before 7 am and as late as midnight.
Advertisem*nt
As for maintaining Buffett's trade privacy, which obviously has to be kept super secret due to the market movements his purchase of a stock could generate if leaked, Freund says Citi's New York team is responsible for guarding that information closely.
"We have a great group in New York that keeps all these things quiet [and we have] ways that we mask what he's doing so people internally cannot find out."
And the most memorable trade came on July 4 few years ago. Freund was on his way to play tennis at 7:30 am when he received a call from Buffett -- he was interested in buying some stock on the LSE. Freund reminded Buffett -- the office isn't open, everyone's on holiday. To which the Oracle replied: "They don't celebrate 4th of july in London." Buffett doesn't care if its a holiday, Freund says -- if he sees something he likes, he goes after it.
What else do we know about Freund? Not much, except that graduated from Columbia University and he's married; his wife is called Penny, and she has been to Berkshire's annual meeting with her hubby 21 out of the 22 years he's attended.
"Price is what you pay.Value is what you get." Buffett is widely celebrated as the greatest value investor of all time – and with good reason. That's exactly why this 2008 quote resonates.
So who is John Freund? For someone that's Warren Buffett's broker, he's got a pretty low online presence -- spare video interviews on being: Buffett's broker. (When asked how he managed to become the broker to the legendary Buffett, Freund answers humbly: "By luck.")
Warren Buffett typically does not give money to individuals, although he frequently donates to charities. However, he has in the past forwarded individual requests for money to his sister, Ms. Doris Buffett, who operates an organization called the Sunshine Lady Foundation.
His fortune is largely tied to his investment company.
The vast majority of Buffett's net worth is tied to Berkshire Hathaway, his publicly traded conglomerate that owns businesses like Geico and See's Candies and holds multibillion-dollar stakes in companies like Apple and Coca-Cola.
Simplicity has been at the center of Buffett's strategy for decades. With Berkshire holding a record $168 billion of cash and short-term investments on its balance sheet, investors must surely be wondering what Buffett is thinking. I'd say he just told us, and I think it makes a lot of sense.
World's third richest person Warren Buffet's Berkshire Hathaway has sold its last Walmart shares, ending a relationship of over 20 years. The world's largest retailer was once among Berkshire's five biggest equity holdings as recently as 2014, valued at over $5 billion.
Anyone can invest in Berkshire Hathaway if they have enough money to buy at least one Class B share (about $360 in late 2023). For comparison, hedge funds are open only to accredited investors, meaning those with a high income or net worth and who can meet the fund's minimum investment, which can be $1 million or more.
Warren Buffett and his holding company Berkshire Hathaway (BRK. A 0.37%)(BRK. B 0.09%) are giants. Berkshire Hathaway became a leading conglomerate because of Buffett's business savvy and investing.
First, my pledge: More than 99% of my wealth will go to philanthropy during my lifetime or at death. Measured by dollars, this commitment is large. In a comparative sense, though, many individuals give more to others every day.
Susan died at the age of 72 after suffering a cerebral hemorrhage during the summer of 2004 in Cody, Wyoming. Bono performed "Forever Young" and "All I Want Is You" at her funeral. Warren was so grief-stricken that he did not attend.
As such, he confirmed “99%-plus” of his wealth will be donated to his charitable trust, while confirming his three children—now between ages 65 and 70—are the executors of his current will.
In 2008, amid one of the most severe financial crises in recent history, legendary investor Warren Buffett, chairman of Berkshire Hathaway, shared a piece of timeless wisdom that would resonate with investors for generations to come: “Be fearful when others are greedy, and be greedy when others are fearful.”
Introduction: My name is Melvina Ondricka, I am a helpful, fancy, friendly, innocent, outstanding, courageous, thoughtful person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.
