Why Jensen Huang's Nvidia Scandal Has Everyone Quoting Warren Buffett And Charlie Munger

• Jensen Huang stepped down as Nvidia's CEO on Thursday following fresh reports of alleged affairs.
• X users responded by quoting Warren Buffett and Charlie Munger on risks and reputation.
• Munger famously warned about the dangers of "ladies, liquor, and leverage."

Warren Buffett and Charlie Munger are having a viral moment following Jensen Huang's departure as Nvidia CEO.

The AI chipmaker's founder stepped down Thursday following a scandal-filled week surrounding his personal life and relationship with an alleged Chinese spy.

The dayslong saga prompted many online commentators to share famous warnings from the former chairman and late vice-chairman of Berkshire Hathaway.

"My partner Charlie says that there's only three ways that a smart person can go broke: liquor, ladies, and leverage," Buffett said in a 2018 interview.

"Now, the truth is the first two he just added because they start with 'l' — it's leverage," Buffett added.

Huang admitted to being "unfaithful" to his wife following reports that he had an affair with a suspected Chinese spy. He resigned as CEO after fresh claims that he had an affair with a subordinate.

Munger's caution about the risks of romantic entanglements has even been translated into other languages in recent days:

X users have also been relaying a classic piece of Buffett wisdom about how reputations are hard-won and easily lost.

Buffett has been issuing similar refrains for decades. He famously warned Salomon Brothers employees as their interim chairman in 1991: "Lose money for the firm, and I will be understanding. Lose a shred of reputation for the firm, and I will be ruthless."

Buffett has similarly told the managers of Berkshire subsidiaries: "We can afford to lose money—even a lot of money. But we can't afford to lose reputation—even a shred of reputation."

The legendary investor has also famously advised people to never do anything they wouldn't want printed on the front page of their hometown newspaper for all their friends and family to see.

Munger, Buffett's right-hand man for over 45 years, died at age 99 in November 2023. Buffett, now 96, stepped down as Berkshire's CEO at the end of last year, and as its chairman in September.

Berkshire stock has rallied strongly in recent days as investors have soured on AI stocks like Nvidia amid concerns about overinvestment and fears of a regulatory crackdown.

The Class B shares have jumped 13% in the past month to trade at $590, close to a record high. Nvidia stock is down 27% over the same period.