Warren Buffet has made a surprising announcement—Dave Sokol has resigned as Chairman of Berkshire's MidAmerican Energy, NetJets and Johns Manville. Many had speculated that Sokol would likely succeed Buffett as CEO of Berkshire Hathaway (BRK.A, BRK.B).
Buffett stated that he did not ask for Sokol’s resignation, and it “came as a surprise” to him.
Sokol was the instigator and primary advocate of the idea of purchasing Lubrizol (Berkshire’s most recent giant acquisition), submitting it to Buffett on January 14 or 15. The deal closed on March 13.
A press release penned by Buffett states he was aware Sokol owned stock in the company, but was not aware how much or when he purchased it. He said he learned on March 19, just before his trip to India, that Sokol had purchased 2,300 shares of Lubrizol on Dec. 14 and sold them on Dec. 21, and subsequently purchased 96,060 more shares on January 5, 6, and 7.
However, Buffett says in his letter that, “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.”
Sokol gave Buffett his resignation letter on March 28, in which he indicated he was leaving to have more time to focus on philanthropic interests.
Sokol had accomplished many amazing feats on behalf of Berkshire Hathaway, not least of which was turning around astronomically indebted private jet company NetJets.
Buffett stated that he did not ask for Sokol’s resignation, and it “came as a surprise” to him.
Sokol was the instigator and primary advocate of the idea of purchasing Lubrizol (Berkshire’s most recent giant acquisition), submitting it to Buffett on January 14 or 15. The deal closed on March 13.
A press release penned by Buffett states he was aware Sokol owned stock in the company, but was not aware how much or when he purchased it. He said he learned on March 19, just before his trip to India, that Sokol had purchased 2,300 shares of Lubrizol on Dec. 14 and sold them on Dec. 21, and subsequently purchased 96,060 more shares on January 5, 6, and 7.
However, Buffett says in his letter that, “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.”
Sokol gave Buffett his resignation letter on March 28, in which he indicated he was leaving to have more time to focus on philanthropic interests.
Sokol had accomplished many amazing feats on behalf of Berkshire Hathaway, not least of which was turning around astronomically indebted private jet company NetJets.
