Buffett: Wal-Mart mishandled probe

May 6, 2012 at 12:00a.m.

McClatchy Newspapers

OMAHA, Neb.

Berkshire Hathaway Chairman and Chief Executive Warren Buffett thinks Wal-Mart Stores Inc. mishandled its Mexico bribery scandal, but his opinion of the retailer has not changed for the worse.

“It may well result in a significant fine, but it doesn’t change the fundamental dynamics of the company,” said Buffett during the question-and-answer segment of Berkshire Hathaway’s annual shareholders meeting on Saturday.

The New York Times reported in April that Wal-Mart relied on bribery of government officials to support rapid growth in Mexico and that top executives were aware of the allegations.

In the wake of the allegations, Wal-Mart has appointed a global compliance officer who will ensure that the company’s business around the world is in compliance with the U.S. Foreign Corrupt Practices Act.

“I don’t think there is something fundamentally dishonest about Wal-Mart,” added Charlie Munger, vice chairman of Berkshire Hathaway.

Buffett also said he doesn’t think Wal-Mart will be materially affected by the bribery scandal five years from now, but noted that it is a major diversion of management time.

Berkshire Hathaway owned a 1.1 percent stake in Wal-Mart at the end of 2011.