OMAHA, Neb.—Taking advice from Wall Street on deals is a bit like asking “the barber whether you need a haircut,” according to billionaire Warren Buffett.
Buffett said in his annual letter to Berkshire Hathaway shareholders Saturday that the current system of reviewing deals doesn’t always work well for investors because it almost always favors the deal that corporate CEOs propose. Companies should consider hiring two sets of advisers to argue for and against a deal before moving forward instead of just hiring a Wall Street firm that favors the deal, he wrote.
