The financial world’s sewing circles are abuzz with a rumor that Greenlight Capital fund manager, stock-market price chopper and pretty good poker player David Einhorn turned down Warren Buffett’s offer to start running money for Berkshire Hathaway.
Observing that hedge fund manager Li Lu and one other candidate had apparently been considered before Buffett selected heretofore unknown money runner Todd “Not Puffy” Combs, Insider Monkey is having some fun with speculation that Einhorn was the third candidate.
IM cites Einhorn’s Midwestern provenance, his value investing strategies and his experience in the reinsurance business as qualities that would appeal to Buffett. But ultimately, Einhorn may have walked away from the discussion for the perverse reason that Buffett, one of the most successful investors of all time, doesn’t pay well enough.
“What Warren Buffett offers is peanuts,” compared with the $200 million Einhorn collects annually before expenses, says Insider Monkey. That stacks up against what would probably be a $500,000 salary tops — Buffett’s current Berkshire take-home pay.
mtaylor [at] observer.com | @mbrookstaylor
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