Saturday, April 30, 2011

Buffett Throws Sokol Completely Under the Bus

WSJ reporting form Berkshire Hathway's annual meeting:
Buffett said Berkshire turned over “very damning evidence, in my view” to the public and the SEC about Sokol's stock trades. He said people seemed to be bothered by a lack of outrage in Buffett's letter a month ago disclosing Sokol's resignation and disclosing that he had bought Lubrizol shares. Buffett said he felt if he laid out facts that were sure to “create problems for [Sokol] in years to come,” he didn’t want to ignore all the good works Sokol did for Berkshire during his career.
This is what Buffett wrote in his initial letter (Pdf) regarding Sokol's trading:
Neither Dave nor I feel his Lubrizol purchases were in any way unlawful. He has told me that they were not a factor in his decision to resign.

Dave’s letter was a total surprise to me, despite the two earlier resignation talks. I had spoken with him the previous day about various operating matters and received no hint of his intention to resign...
I have held back nothing in this statement. Therefore, if questioned about this matter in the future, I will simply refer the questioner back to this release.

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