David Sokol, considered by many to be the leading candidate to replace Warren Buffett as the chairman of Berkshire Hathaway (NYSE: BRK-A, BRK-B), has resigned. His stated reason was to build up a business to leave to his family. The real reason, it seems, is that Sokol took a major position in Lubrizol before Berkshire bought it at a substantial premium in a $9 billion deal. The bottom line is that these transactions always become known, and Sokol, who’s arguably one of the most capable executives in the world, got out in front of the bullet… Read More
David Sokol, considered by many to be the leading candidate to replace Warren Buffett as the chairman of Berkshire Hathaway (NYSE: BRK-A, BRK-B), has resigned. His stated reason was to build up a business to leave to his family. The real reason, it seems, is that Sokol took a major position in Lubrizol before Berkshire bought it at a substantial premium in a $9 billion deal. The bottom line is that these transactions always become known, and Sokol, who’s arguably one of the most capable executives in the world, got out in front of the bullet and left before he had to. Warren Buffett and Berkshire Hathaway are more than one man’s name and that of a large company — they are a platinum-coated brand that implies the absolute highest ethical and business standards. Berkshire, despite its gargantuan, multi-billion dollar market cap, is still a handshake company. Buffett has the cash to make the world turn with a phone call, sure, but his cache is more than that. The world trusts him. He’s known for being a straight-shooter. Sokol’s actions, which Buffett thinks are legal to the letter of the law, would still… Read More