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David Sokol Resigns!


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Wow! That just came way out of left field.

 

This raises an interesting question in my mind: Would someone with the entrepreneurial drive and passion needed to run a successful company be interested in essentially working as an employee for Berkshire? (And the corollary, would Buffett be willing to reward his top Manager with enough equity to make it worthwhile for them? Something he has previously been loath to do.)

 

It is interesting that Sokol mentioned he wanted to explore more entrepreneurial endeavors where he could build up substantial equity in the business. I wonder if something similar factored into Li Lu's decision not to take the Chief Investment position.

 

Fascinating, to say the least.

 

m.

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While not illegal, it's pretty immoral he was buying stock in Lubrizol while being in charge of identifying chemical acquisitions for BRK.

 

http://online.wsj.com/article/SB10001424052748704517404576223383008589922.html?mod=googlenews_wsj

 

 

It was Mr. Sokol, a Berkshire executive, who plucked Lubrizol from a list of 18 chemical companies that bankers at Citigroup Global Markets had compiled in December 2010 as possible acquisitions at Mr. Sokol's request, according to the filing.

 

 

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I think it's very interesting the way that Warren said the prior two times, they tried to talk Sokol out of resignation -- but this time he didn't.

 

I think that's as close to a "firing" at the upper echelons as it gets at Berkshire Hathaway.

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He owns a good chunk of Middleburg Financial.  From the letter he sent to Buffett, and the fact that he's going to be on television tomorrow, I'm guessing some fantastic opportunity came his way and now he's going to accept. 

 

There was no guarantee he would be taking over for Buffett with Ajit there, the CEO of BNSF, Tony Nicely, etc.  And if he was, it may not be for another decade.  Plus, following in Buffett's footsteps are very big shoes to fill...the expectation, exposure, criticisms...it would be nuts!  Cheers!

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