Buffett Heir Apparent Sokol Suddenly Resigns At Berkshire - after buying shares then repeatedly pushed Buffett to acquire -
Warren Buffett stunned investors Wednesday when he announced the sudden resignation of David Sokol, widely considered to be Buffett's heir apparent at Berkshire Hathaway.
Sokol, one of Buffett's favored lieutenants, resigned after buying shares in a company he then repeatedly pushed Buffett to acquire.
Sokol is scheduled to be interviewed live on CNBC at 7:40 am Thursday.
Sokol's resignation from his roles as chairman of MidAmerican Energy and NetJets is a stunning turn of events for Buffett, the 80-year-old "Oracle of Omaha" who recently sealed a $9 billion deal for Lubrizol [LZ 134.01 -0.01 (-0.01%) ].
Buffett said on Wednesday that Sokol bought shares of Lubrizol last December, sold them, then bought more shares in early January. He subsequently presented Buffett with the idea of buying the company.
Buffett said he was originally not in favor of the idea but warmed to it after Sokol told him of a conversation with Lubrizol's chief executive officer. He did not elaborate on the details of that conversation. Buffett said he did not feel Sokol's purchases were unlawful.
"Especially in a situation like this, the brand is everything," said William Larkin, fixed income portfolio manager at Cabot Money Management. "Often, when you violate that brand for any reason whatsoever, your goose is cooked."
Sokol's March 28 letter of resignation from his role as chairman of MidAmerican and NetJets mentioned his desire to pursue philanthropic efforts.
Buffett has regularly praised Sokol's work, and many investors have speculated that Sokol was on the short list to succeed Buffett at the Omaha, Neb.-based company.
Due to Sokol's departure, Buffett said Greg Abel, current president and CEO of MidAmerican Holding, will become its chairman; Todd Raba, president and CEO of Johns Manville, will become its chairman; and Jordan Hansell, President of NetJets, will become that unit's chairman and CEO.
Read more - http://www.cnbc.com/id/42347153
Warren Buffett stunned investors Wednesday when he announced the sudden resignation of David Sokol, widely considered to be Buffett's heir apparent at Berkshire Hathaway.
Sokol, one of Buffett's favored lieutenants, resigned after buying shares in a company he then repeatedly pushed Buffett to acquire.
Sokol is scheduled to be interviewed live on CNBC at 7:40 am Thursday.
Sokol's resignation from his roles as chairman of MidAmerican Energy and NetJets is a stunning turn of events for Buffett, the 80-year-old "Oracle of Omaha" who recently sealed a $9 billion deal for Lubrizol [LZ 134.01 -0.01 (-0.01%) ].
Buffett said on Wednesday that Sokol bought shares of Lubrizol last December, sold them, then bought more shares in early January. He subsequently presented Buffett with the idea of buying the company.
Buffett said he was originally not in favor of the idea but warmed to it after Sokol told him of a conversation with Lubrizol's chief executive officer. He did not elaborate on the details of that conversation. Buffett said he did not feel Sokol's purchases were unlawful.
"Especially in a situation like this, the brand is everything," said William Larkin, fixed income portfolio manager at Cabot Money Management. "Often, when you violate that brand for any reason whatsoever, your goose is cooked."
Sokol's March 28 letter of resignation from his role as chairman of MidAmerican and NetJets mentioned his desire to pursue philanthropic efforts.
Buffett has regularly praised Sokol's work, and many investors have speculated that Sokol was on the short list to succeed Buffett at the Omaha, Neb.-based company.
Due to Sokol's departure, Buffett said Greg Abel, current president and CEO of MidAmerican Holding, will become its chairman; Todd Raba, president and CEO of Johns Manville, will become its chairman; and Jordan Hansell, President of NetJets, will become that unit's chairman and CEO.
Read more - http://www.cnbc.com/id/42347153
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