Interesting front page article in today’s WSJ about Davod Sokol, Warren Buffett’s heir apparent to head Berkshire Hathaway, stepping down. Why? Because he invested in Lubrizol right before Berkshire bought the company. From the article:
Mr. Buffett said Mr. Sokol, 54 years old, had bought 96,060 shares in January, before Berkshire reached a $9 billion deal to acquire the company. Berkshire’s purchase price of $135 per share meant that Mr. Sokol’s stake rose $3 million in value.
What I found really interesting was this quote from the article:
“Mr. Buffett said he and Mr. Sokol didn’t feel the Lubrizol purchases were ‘in any way unlawful.'”
Maybe not but it sure looks bad.