David Sokol and The Lubrizol Scandal

Sokol resigned after purchasing $10 million of the stock of Lubrizol Corp. (LZ), a company Sokol suggested that Buffett buy. Sokol bought the shares, and recommended the company’s purchase, in January. In March, Berkshire said it agreed to buy Lubrizol, leading to a $3 million profit on Sokol’s stake in less than three months.

Lubrizol Corporation products are used in a broad range of applications, with multiple end uses such as engine oils, specialty driveline lubricants and metalworking fluids, as well as personal care and over-the-counter pharmaceutical products.

I wonder if Lubrizol has anything

for the HEADACHE that

David Zokol must have????

Could call it ~ LUBRISOKOL

Insider Trading

Seems pretty clear to me.

Could any of us have done what he did?

No!

Therefore, he had inside information!!!!

Many followers of Berkshire Hathaway believe that Mr. Sokol was on the short list to eventually succeed Warren Buffett as CEO.

In his book, Pleased But Not Satisfied, David Sokol sets forth the “six commandments” of business:  Customer Commitment, Employee Commitment, Financial Strength, Integrity, Environmental Respect, and Operational Excellence.

On page 30 of his book, which he hands out to his employees, he writes: “If you are uncertain about an issue it’s useful to ask yourself, ‘Would I be absolutely comfortable for my action to be disclosed on the front page of my hometown newspaper in an article written by a knowledgeable and thorough reporter, and read by my family, friends and co-workers?’”

He should have re-read his book.

If he had, he might have had a chance of replacing Warren Buffet. Now he has embarrassed himself and Berkshire Hathaway and maybe, just maybe could face criminal investigation. The Securities and Exchange Commission was considering whether to launch an insider trading investigation into Berkshire Hathaway Inc. (BRKA, BRKB) executive David Sokol.