Tuesday, July 23, 2002

If people like Andrew Sullivan are going to openly disdain mere academics such as Paul Krugman, would they listen to someone worth a few billion, even if he says what they don't want to hear?

What would Joe Lieberman, fighting to keep corporations from counting stock options as costs, say about Warren Buffett saying this?

Without blushing, almost all C.E.O.'s have told their shareholders that options are cost-free.

For these C.E.O.'s I have a proposition: Berkshire Hathaway will sell you insurance, carpeting or any of our other products in exchange for options identical to those you grant yourselves. It'll all be cash-free. But do you really think your corporation will not have incurred a cost when you hand over the options in exchange for the carpeting? Or do you really think that placing a value on the option is just too difficult to do, one of your other excuses for not expensing them? If these are the opinions you honestly hold, call me collect. We can do business.

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