Buffett/Berkshire - general news

[MungerWunger]

Photo of the 1989 annual meeting (from twitter)

 

[Pellom]

49 minutes ago, crs223 said:

 

What evidence is there that the Berkshire board and management team are not aligned?  Can you provide a link, I'd like to see these "really" cagey comments.

 

I'm not saying they aren't aligned. I'm saying the subtext was clear that Greg has a ceiling on his authority, and that presents future challenge as Warren's stake gets reduced and board members are forced off due to age. 

 

It's not tomorrow's problem, but there will be a time when it comes to a head. 

[Munger_Disciple]

Fortune magazine article on Buffett & Berkshire:

 

https://fortune.com/2025/12/30/warren-buffett-blind-spot-tech-investing-apple/

[UK]

5 hours ago, Munger_Disciple said:

Fortune magazine article on Buffett & Berkshire:

 

https://fortune.com/2025/12/30/warren-buffett-blind-spot-tech-investing-apple/

Thanks! Very good article. That movie about Mozart is also really good:)

 

Edited January 24 by UK

[Hektor]

https://www.wsj.com/business/david-sokol-berkshire-hathaway-a2f92bf2

 

The Man Who Almost Replaced Warren Buffett

[gfp]

56 minutes ago, Hektor said:

https://www.wsj.com/business/david-sokol-berkshire-hathaway-a2f92bf2

 

The Man Who Almost Replaced Warren Buffett

 

It's a decent article but I still don't think Sokol was Warren't pick to run all of Berkshire.  Sokol's resignation wasn't the first time he had tried to resign from Berkshire to focus on his family's resources.

 

Warren has long needed one or more "mr. Fix-it" / bad-cop roles at Berkshire.  From Harry Bottle on through time he has preferred to NOT be the one to get his hands dirty, which makes a lot of sense.  But your "fixer" isn't likely your pick to run the entire enterprise for decades after you retire the top role.

[Munger_Disciple]

15 minutes ago, gfp said:

 

It's a decent article but I still don't think Sokol was Warren't pick to run all of Berkshire.  Sokol's resignation wasn't the first time he had tried to resign from Berkshire to focus on his family's resources.

 

Warren has long needed one or more "mr. Fix-it" / bad-cop roles at Berkshire.  From Harry Bottle on through time he has preferred to NOT be the one to get his hands dirty, which makes a lot of sense.  But your "fixer" isn't likely your pick to run the entire enterprise for decades after you retire the top role.

 

 I tend to agree... I think it was Ajit's name in the envelope earlier and Greg's later.

Edited January 25 by Munger_Disciple

[valueinvesting101]

38 minutes ago, gfp said:

 

It's a decent article but I still don't think Sokol was Warren't pick to run all of Berkshire.  Sokol's resignation wasn't the first time he had tried to resign from Berkshire to focus on his family's resources.

 

Warren has long needed one or more "mr. Fix-it" / bad-cop roles at Berkshire.  From Harry Bottle on through time he has preferred to NOT be the one to get his hands dirty, which makes a lot of sense.  But your "fixer" isn't likely your pick to run the entire enterprise for decades after you retire the top role.

Can you please share details about Sokol’s earlier attempt to resign from Berkshire? I wonder when that happened and what caused it. Was it after mid American was purchased or after GFC?

 

 

[ValueMaven]

There was nothing new in that WSJ article 

[gfp]

3 hours ago, valueinvesting101 said:

Can you please share details about Sokol’s earlier attempt to resign from Berkshire? I wonder when that happened and what caused it. Was it after mid American was purchased or after GFC?

 

 

 

From Gemini (I'm watching football but Gemini is free)

-------------------------

 

When David Sokol resigned from Berkshire Hathaway in March 2011, Warren Buffett revealed that Sokol had actually attempted to step down on two previous occasions. These earlier attempts were closely tied to Sokol's reputation as Berkshire's "Mr. Fix-it," a nickname he earned by turning around struggling subsidiaries.

 

The 2009 Attempt: The NetJets "Rescue"

The most significant of these attempts occurred in mid-2009. At the time, Sokol had expressed a desire to leave the corporate world to focus on his own family office and philanthropic interests.

 

• Buffett’s Intervention: Instead of accepting the resignation, Buffett persuaded Sokol to stay by offering him a daunting new challenge: fixing NetJets.

• The "Fix-it" Role: NetJets, Berkshire’s private jet subsidiary, was in a dire financial state, having lost $711 millionin 2009 and carrying massive debt.

• The Result: Sokol accepted the role of Chairman and CEO of NetJets in August 2009. Under his leadership, the company underwent a radical restructuring that involved significant cost-cutting and layoffs. Within a year, he successfully turned the company around, posting a $207 million profit in 2010.

   

The Earlier Attempt (Circa 2007/2008)

Buffett’s March 2011 press release noted that Sokol had approached him about resigning "twice before," with the 2009 incident being the most recent. While the exact date of the first attempt is less publicized, it is widely believed to have occurred around 2007 or early 2008, coinciding with his work at Johns Manville.

 

• The Johns Manville Assignment: Sokol was appointed Chairman of Johns Manville (a building products manufacturer) in early 2007. Like NetJets, it was a business that needed operational discipline.

• Buffett's Logic: Buffett and other board members successfully argued each time that Sokol was too valuable to the organization. Buffett later wrote, "Berkshire is far more valuable today because we were successful in those efforts [to keep him]."

   

---

Comparison of Resignation Narratives

Detail	2011 Resignation (Final)	Earlier Attempts (~2007 & 2009)
Reason Given	To manage family resources and create a legacy.	Identical: family resources and philanthropy.
Buffett's Response	Accepted immediately.	Persuaded him to stay.
The "Fix-it" Trade	None (Lubrizol controversy was ongoing).	Challenged him with NetJets/Johns Manville.

Export to Sheets

Sokol’s Later Reflection

In a 2013 interview with Fox Business, Sokol reflected on these moments with some regret, stating:

"The only mistake I made is that I should have resigned two years earlier than I did [in 2009]. I tried to, but Warren talked me out of it."

His exit in 2011 ended a career where he was frequently cited as the frontrunner to succeed Buffett, a trajectory that was fueled by his ability to step into "broken" businesses and make them profitable.

[John Hjorth]

1 hour ago, gfp said:

... From Gemini (I'm watching football but Gemini is free) ...

 

@gfp,

 

  - Now you just need to complete the weekend with entering the Politics topic, just repeating your 'Ya'all crazy' post from the 'What are you drinking' topic, and my wildest dreams for an entertaining weekend have been fulfilled!  The more rock 'n roll, the better! 

[schin]

3 hours ago, gfp said:

 

From Gemini (I'm watching football but Gemini is free)

-------------------------

 

 

When David Sokol resigned from Berkshire Hathaway in March 2011, Warren Buffett revealed that Sokol had actually attempted to step down on two previous occasions. These earlier attempts were closely tied to Sokol's reputation as Berkshire's "Mr. Fix-it," a nickname he earned by turning around struggling subsidiaries.

 

 

The 2009 Attempt: The NetJets "Rescue"

The most significant of these attempts occurred in mid-2009. At the time, Sokol had expressed a desire to leave the corporate world to focus on his own family office and philanthropic interests.

 

 

• Buffett’s Intervention: Instead of accepting the resignation, Buffett persuaded Sokol to stay by offering him a daunting new challenge: fixing NetJets.

• The "Fix-it" Role: NetJets, Berkshire’s private jet subsidiary, was in a dire financial state, having lost $711 millionin 2009 and carrying massive debt.

• The Result: Sokol accepted the role of Chairman and CEO of NetJets in August 2009. Under his leadership, the company underwent a radical restructuring that involved significant cost-cutting and layoffs. Within a year, he successfully turned the company around, posting a $207 million profit in 2010.

   

   

The Earlier Attempt (Circa 2007/2008)

Buffett’s March 2011 press release noted that Sokol had approached him about resigning "twice before," with the 2009 incident being the most recent. While the exact date of the first attempt is less publicized, it is widely believed to have occurred around 2007 or early 2008, coinciding with his work at Johns Manville.

 

 

• The Johns Manville Assignment: Sokol was appointed Chairman of Johns Manville (a building products manufacturer) in early 2007. Like NetJets, it was a business that needed operational discipline.

• Buffett's Logic: Buffett and other board members successfully argued each time that Sokol was too valuable to the organization. Buffett later wrote, "Berkshire is far more valuable today because we were successful in those efforts [to keep him]."

   

   

---

Comparison of Resignation Narratives

Detail	2011 Resignation (Final)	Earlier Attempts (~2007 & 2009)
Reason Given	To manage family resources and create a legacy.	Identical: family resources and philanthropy.
Buffett's Response	Accepted immediately.	Persuaded him to stay.
The "Fix-it" Trade	None (Lubrizol controversy was ongoing).	Challenged him with NetJets/Johns Manville.

Export to Sheets

Sokol’s Later Reflection

In a 2013 interview with Fox Business, Sokol reflected on these moments with some regret, stating:

"The only mistake I made is that I should have resigned two years earlier than I did [in 2009]. I tried to, but Warren talked me out of it."

His exit in 2011 ended a career where he was frequently cited as the frontrunner to succeed Buffett, a trajectory that was fueled by his ability to step into "broken" businesses and make them profitable.

 

 

I'm surprised that David Sokol has been more involved in the equities side of Fairfax. Or fixer of businesses.

[gfp]

4 minutes ago, schin said:

 

I'm surprised that David Sokol has been more involved in the equities side of Fairfax. Or fixer of businesses.

 

People like to insinuate on this site that David Sokol works for Fairfax.  David Sokol works for David Sokol.

[schin]

8 minutes ago, gfp said:

 

People like to insinuate on this site that David Sokol works for Fairfax.  David Sokol works for David Sokol.

 

@gfp - Have you met David Sokol or worked with or alongside him? How do you come to that conclusion?

[Hektor]

9 hours ago, gfp said:

I still don't think Sokol was Warren't pick to run all of Berkshire.

I have a similar thought.

[gfp]

11 hours ago, schin said:

 

@gfp - Have you met David Sokol or worked with or alongside him? How do you come to that conclusion?

 

Just that one wild night in Kelly, WY with Ryan Reynolds, Blake, Sokol and a case of Aviation Gin!  What a hangover..

https://www.conciergeauctions.com/auctions/6965-e-schwiering-lane-kelly-wyoming-83011

 

But seriously, what makes you think David Sokol works for Fairfax?  They sometimes partner on David Sokol's deals but David Sokol is not a Fairfax employee or likely interested at all in working for Fairfax.  David Sokol is running his own family office / private equity firm (Teton) and Fairfax is occasionally a co-investor in a deal (Davos worked out very well, Atlas/Poseidon is in progress, etc)

 

Decent chance Sokol is a billionaire on his own by now.  He made a ton of money, largely elected to receive in BRK stock (vs. Abel who took cash)

[Munger_Disciple]

1 hour ago, gfp said:

 

Just that one wild night in Kelly, WY with Ryan Reynolds, Blake, Sokol and a case of Aviation Gin!  What a hangover..

https://www.conciergeauctions.com/auctions/6965-e-schwiering-lane-kelly-wyoming-83011

 

But seriously, what makes you think David Sokol works for Fairfax?  They sometimes partner on David Sokol's deals but David Sokol is not a Fairfax employee or likely interested at all in working for Fairfax.  David Sokol is running his own family office / private equity firm (Teton) and Fairfax is occasionally a co-investor in a deal (Davos worked out very well, Atlas/Poseidon is in progress, etc)

 

Decent chance Sokol is a billionaire on his own by now.  He made a ton of money, largely elected to receive in BRK stock (vs. Abel who took cash)

IIRC I remember reading that Sokol sold all of his Berkshire shares either before or soon after he left the company. 

[schin]

8 hours ago, gfp said:

 

Just that one wild night in Kelly, WY with Ryan Reynolds, Blake, Sokol and a case of Aviation Gin!  What a hangover..

https://www.conciergeauctions.com/auctions/6965-e-schwiering-lane-kelly-wyoming-83011

 

But seriously, what makes you think David Sokol works for Fairfax?  They sometimes partner on David Sokol's deals but David Sokol is not a Fairfax employee or likely interested at all in working for Fairfax.  David Sokol is running his own family office / private equity firm (Teton) and Fairfax is occasionally a co-investor in a deal (Davos worked out very well, Atlas/Poseidon is in progress, etc)

 

Decent chance Sokol is a billionaire on his own by now.  He made a ton of money, largely elected to receive in BRK stock (vs. Abel who took cash)

 

@gfp Did P. Diddy and Jeffrey Epstein make a visit too? Must be one hell of a party.

 

I met David Sokol as the Fairfax Dinner last year. He was there with all the other company CEOs and management team. He mentioned last year that he did talk to Greg Abel and think he is doing a great job. He had a few Buffett stories that he told to me and another gentleman in the hallway. Again, he didn't seem like a douche bag and didn't think he was an ego maniac either. 

 

But, again, I guess it's the Fairfax halo. Why would Prem be associated with terrible people, if he doesn't have to. David addressed questions most directly ... in some ways he had a Jaime Dimon-eque quality to him.

 

[gfp]

Sure - I didn't say he was a douchbag, I said he didn't work for Fairfax.  He works for himself (and his family's interests).  Doesn't make him a bad partner but he's that: a partner.

[djokovic1]

Does anyone have any thoughts on the MidAmerican lawsuit, and its implications on Dave Sokol happy to operate in a grey area?

 

"In April 2010, a Douglas County judge[10] found that Sokol, who was the CEO of MidAmerican Energy Holdings Company, decided to change future profit calculations in such a way that it eliminated the stake in a 1990s Philippines project for San Lorenzo Ruiz Builders & Developers Group. The judge said that Sokol and MidAmerican had acted "willfully and intentionally".[10] The court levied a $32 million[8] ruling against MidAmerican. This ruling may be worth $140 million in future profits.

In a second case, courts in San Francisco and Omaha ruled against MidAmerican for a total of $52 million[10] in past profits, while also restoring ownership to La Prairie and San Lorenzo. These rights could amount to $280 million in future profits.

The third lawsuit for $150 million alleges that Sokol "secretly resumed negotiations"[10] that led to a lower projected profit."

[ratiman]

On 1/20/2026 at 7:33 PM, KPO said:

https://www.sec.gov/Archives/edgar/data/1637459/000110465926005089/tm263595-1_424b7.htm
 

This is interesting. Greg’s first act as CEO may be disaster remediation. 

Here's what Greg should do. Do an LBO of Kraft with preferred convertible stock owned by BRK. Then leave a stub that will earn a premium valuation with BRK owning most of the shares. Then use that overvalued stub to acquire CPG businesses and turn Kraft Heinz from a loser into a grower. Maintain BRK ownership via the convertible.  This is called monetizing the BRK brand name without issuing more BRK shares. Rename Kraft Heinz to Berkshire Consumer Brands. 

[schin]

3 hours ago, ratiman said:

Here's what Greg should do. Do an LBO of Kraft with preferred convertible stock owned by BRK. Then leave a stub that will earn a premium valuation with BRK owning most of the shares. Then use that overvalued stub to acquire CPG businesses and turn Kraft Heinz from a loser into a grower. Maintain BRK ownership via the convertible.  This is called monetizing the BRK brand name without issuing more BRK shares. Rename Kraft Heinz to Berkshire Consumer Brands. 

 

Warren partnered with 3G Capital (the king of LBOs aka zero-based budgeting) on this... so, you want to LBO a LBO?

 

[ratiman]

1 hour ago, schin said:

 

Warren partnered with 3G Capital (the king of LBOs aka zero-based budgeting) on this... so, you want to LBO a LBO?

 

 

 

That deal was done at an outrageously high price. This is trading at like 10x earnings. That's the price you do an LBO. Plus this time there will be no 3G, just Berkshire and a stub. 

[villainx]

On 1/26/2026 at 8:56 AM, gfp said:

Just that one wild night in Kelly, WY with Ryan Reynolds, Blake, Sokol and a case of Aviation Gin!  What a hangover..

https://www.conciergeauctions.com/auctions/6965-e-schwiering-lane-kelly-wyoming-83011

 

Going through the link, is this supposed to be a functional stove with columns around it?  Where would folks put pots and stuff, or meal prep?

 

[gfp]

47 minutes ago, villainx said:

 

Going through the link, is this supposed to be a functional stove with columns around it?  Where would folks put pots and stuff, or meal prep?

 

 

Don't worry Dave renovated the kitchen as soon as he bought it

 

(also, the house I grew up in from '83 to late nineties had a stove top with no counter space on either side kind of like this and my Dad f'ing hated it)

Edited January 28 by gfp