Sokol Resigns

[acaTerry]

Well getting back to the original post..."MeEt the new boss...."
Not MeAt the new boss...."
I love knowing everything. One day I'll be like Julius (I hope).

 

[G4dude]

..."Jan. 14 or 15: Mr. Sokol mentions a possible Lubrizol deal to Mr. Buffett for the first time, according to Mr. Buffett. Mr. Sokol made a “passing remark” to Mr. Buffett about his stake in Lubrizol, Mr. Buffett said."...

Strongly disagree that it is OK if he mentioned it. He is recommending that BH pursue a company that he has a financial interest in.

The man must have lost his mind...funny that he didn't even personally hand WB his resignation letter...instead he has his assistant do it.

I'm surprised you feel that way. If Sokol recommended the stock to BH and told BH at the same time about his ownership of the shares, how would that be unethical? he would merely be recommending that BH buy the same company, for the same reason, as he himself had done.

 

[Xcorporate]

Front running is unethical. But more to the point is that it was a violation of BH's ethics code which he agreed to upon employment. He's a creep. Pretty simple.......

I'm surprised you feel that way. If Sokol recommended the stock to BH and told BH at the same time about his ownership of the shares, how would that be unethical? he would merely be recommending that BH buy the same company, for the same reason, as he himself had done.

 

[LAZYB]

Front running is unethical. But more to the point is that it was a violation of BH's ethics code which he agreed to upon employment. He's a creep. Pretty simple.......

There ya go!

 

[rajflyboy]

You must ask yourself the questions:

1. Are you Pleased?
2. Are you Satisfied?

 

[pers-headwall]

$720 million investment and 0% return in twelve years.

Time for BRK.a to cut bait.

 

[gret]

I'm surprised you feel that way. If Sokol recommended the stock to BH and told BH at the same time about his ownership of the shares, how would that be unethical? he would merely be recommending that BH buy the same company, for the same reason, as he himself had done.

Only if you believe he is as pure as you believe, which he probably isn't.

I buy stock in a company and then recommend that my boss (company) do a buy out...no way...it stinks and doesn't work in anybody's code of ethics.

Sorry man... you're smarter than this so I'm surprised you are even bringing this matter up.

A lousy $3 million isn't worth losing your reputation and a shot at the top of BH. He sold out his boss and a friend.

 

[be99fr8dog]

$720 million investment and 0% return in twelve years.

If you truly believe this...

I have some ocean front property in AZ I would love to sell you. I also have a fractional interest in the Golden Gate Bridge that you might be interested in.

Have you ever heard of Lubrizol? I can get you in on the ground floor, got a friend that has some in's... Let me know. One friend to another, you know...

But!!! you have to keep these deals quiet. You know regulations, sec, etc... I will only cut a buddy like you a great deal like this.

 

[G4dude]

Only if you believe he is as pure as you believe, which he probably isn't.

I buy stock in a company and then recommend that my boss (company) do a buy out...no way...it stinks and doesn't work in anybody's code of ethics.

Sorry man... you're smarter than this so I'm surprised you are even bringing this matter up.

A lousy $3 million isn't worth losing your reputation and a shot at the top of BH. He sold out his boss and a friend.

I agree with you, IF he didn't tell Berkshire Hathaway he had purchased the shares. If he did tell them beforehand, where would the ethical lapse be?

 

[brokeflyer]

I agree with you, IF he didn't tell Berkshire Hathaway he had purchased the shares. If he did tell them beforehand, where would the ethical lapse be?

He bought all those shares then recommended WB to buy the company. In doing so his stock would increase in value......by just about 3 million dollars.

It dont matter if he told Berkshire he bought them or not.

 

[gret]

I agree with you, IF he didn't tell Berkshire Hathaway he had purchased the shares. If he did tell them beforehand, where would the ethical lapse be?

I was in a crappy mood when I original posted and didn't mean it to come off quite the way I wrote it. At that point, my wife was telling me again that she is right "ten times out of eight".

We may be hung up a bit on what is ethical versus being legal.

In any event, brokeflyer said it better than I did. The fact he bought shares and suggested that BH make a run at the company is where the problem lies. It makes no difference whether he told them he bought the shares or not, the appearance of making a buck at this level by suggesting a buy or sell is enough to cause problems. He may not be a insider according to the SEC rules..but he is in a position to influence.

Put another way, if you were his pilot, his accountant, barber, etc and bought the shares and told him to make a run at the company, no problem. You would not be deemed to be in a position to influence BH. Sokol is and that is the rub.

The fact is that this matter will just go away as they usually do. Personally I think Warren gave him the boot for being a dummy. I doubt that Buffett even paid any attention to the comment at that initial meeting, but would have if Sokol reminded him once things heated up that he owned shares.

 

[G4dude]

I was in a crappy mood when I original posted and didn't mean it to come off quite the way I wrote it. At that point, my wife was telling me again that she is right "ten times out of eight".

We may be hung up a bit on what is ethical versus being legal.

In any event, brokeflyer said it better than I did. The fact he bought shares and suggested that BH make a run at the company is where the problem lies. It makes no difference whether he told them he bought the shares or not, the appearance of making a buck at this level by suggesting a buy or sell is enough to cause problems. He may not be a insider according to the SEC rules..but he is in a position to influence.

Put another way, if you were his pilot, his accountant, barber, etc and bought the shares and told him to make a run at the company, no problem. You would not be deemed to be in a position to influence BH. Sokol is and that is the rub.

The fact is that this matter will just go away as they usually do. Personally I think Warren gave him the boot for being a dummy. I doubt that Buffett even paid any attention to the comment at that initial meeting, but would have if Sokol reminded him once things heated up that he owned shares.

When my wife gets in a crappy mood, she gets on Facebook and starts firing EVERYBODY up. My point is, if Sokol originally told Berkshire that he had already purchased shares, there is absolutely NO ethical lapse, not even an appearance of one. If he didn't tell them originally, there was a lapse. Cheers!

 

[imacdog]

Not according to the BH ethics handbook.

 

[brokeflyer]

When my wife gets in a crappy mood, she gets on Facebook and starts firing EVERYBODY up. My point is, if Sokol originally told Berkshire that he had already purchased shares, there is absolutely NO ethical lapse, not even an appearance of one. If he didn't tell them originally, there was a lapse. Cheers!

you dont get it.

He bought shares then manipulated the system to his own adavantage with information the rest of world didnt have.

You need to wake up that brain of yours, I can't explain it any easier than that.

 

[imacdog]

More details are emerging about this as well.

http://www.businessinsider.com/details-emerge-in-berkshire-deal-that-led-to-resignation-2011-4

 

[gret]

When my wife gets in a crappy mood, she gets on Facebook and starts firing EVERYBODY up. My point is, if Sokol originally told Berkshire that he had already purchased shares, there is absolutely NO ethical lapse, not even an appearance of one. If he didn't tell them originally, there was a lapse. Cheers!

It is fine to have this view, but I believe that one would be ignoring the true spirit of how one should conduct themselves in this situation. He should have sold the stock prior to informing WB about the company and the opportunities that may exist for BH.

Sokol said on CNBC he regrets ever mentioning the company to WB. He pushed the envelope too far and lost his job because of it. Was it worth the $3 million?... I don't think so.

Ethical, legal, or whatever, I doubt many people, who consider themselves ethical, would attempt this maneuver in the future.

 

[Grizz]

G4Dude -

If everything was fine and above board, why isn't he here anymore?

Wake up man.

 

[imacdog]

Why, he's spending more time with his family of course!

 

[CRAWDADDY]

Not according to the BH ethics handbook.

And we know that's the final arbiter of everything.....

Just use BH and ethics in the same sentence and you have a sure formula/recipe for a good joke.

 

[Mike Jenvey]

Maybe "way more" more discussion with Lubrizol than "previously disclosed."

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