buffett will take questions re Sokol at AM

[lethean46]

New WSJ article says that Buffett will take questions at the annual meeting (not before) re Sokol.  An independent committee of the BOD has been formed to determine if BRK policy was breached by Sokol.  Excerpts of BRK policy included in the article.

 

http://online.wsj.com/article/SB10001424052748703806304576245271170720328.html?mod=WSJ_hp_LEFTWhatsNewsCollection

 

ML

[Guest ValueCarl]

Hmm, almost nine years ago now, in July of 2002, Mr. Buffett bought a nine percent Jr. Convertible Bond with a strike price of $3.41 per share from his close friend and Chairman of Level 3 Communications(LVLT), Mr. Walter Scott, prior to FLIPPING OUT of that position at a one hundred percent gain approximately one year later.

 

I wonder if any of his lieutenants were buying that stock in advance of "The Buffett Effect"? There is a very close connection to Sokol and Scott as well.

 

<Separately, the Securities and Exchange Commission intends to investigate past acquisitions by Berkshire to see whether Mr. Sokol held shares in other target companies before deals were announced, according to people familiar with the situation.

 

The Buffett memo on the company's trading policy, reviewed by The Wall Street Journal, covers top executives of Berkshire subsidiaries, such as Mr. Sokol. It has been in place for more than 10 years and is consistent with the broad legal ban on insider trading. Mr. Sokol certified having reviewed the policy, according to a person familiar with the matter.>   

[Buffetteer]

Wow, great article, thanks for the link lethean.

 

Sokol obviously violated the policies of the "Insider Trading" memo. I am just very surprised to hear Mr. Buffet say that the LZ trades had nothing to do with Sokol's resignation. If they didn't, they certainly should have.

[lethean46]

Wow, great article, thanks for the link lethean.

 

Sokol obviously violated the policies of the "Insider Trading" memo. I am just very surprised to hear Mr. Buffet say that the LZ trades had nothing to do with Sokol's resignation. If they didn't, they certainly should have.

 

FYI.  Buffett didn't exactly say that.  He wrote that SOKOL said that ....  A subtle but significant difference?

 

ML

[merkhet]

Absolutely significant.  Warren is a Carnegie disciple, so he's very careful about praising individually and criticizing categorically (or even never).

 

I think both Warren's choice of words and Munger's recent slip differentiating Munger's long-term BYD stake are both indications that while Sokol may not have strictly violated any insider trading laws, Sokol skated too close to the line and possibly violated Warren's ethical ideals.

[Buffetteer]

You're right, there is a significant difference, but Buffett did say he was surprised at Sokol's resignation. Would suggest that Buffett didn't think Sokol's trades were an issue, otherwise why be surprised.

Again, I am drawing my own conclusions, not quoting Mr. Buffett.

 

But I do see your point.