Warren Buffet is involved in a situation in which he is deciding whether one of his employees, David Sokol, did something wrong and possibly illegal when he bought close to $10 million in Lubrizol stock prior to Buffet's firm, Berkshire Hathaway, making an offer to buy the company. Buffet should be careful in his defense of Sokol that it wasn't just Sokol who did something wrong here and quite possibly illegal.
In a letter to Berkshire's shareholders, Buffet defends Sokol by saying that Sokol notified Buffet of his substantial position in Lubrizol prior to Buffet's decision to acquire the company, and that Sokol had no authority to give final approval for acquisitions at Berkshire. Green-lighting a potential merger candidate was solely the purview of Buffet, his vice-chairman, Charlie Munger, and the Berkshire board.
More...
0 comments
Post a Comment