Warren Buffet announced the sudden resignation of his
heir apparent, David Sokol, on March 30, 2011. Berkshire Hathaway shareholders,
fundamental style value investors, law
professors, and the business media have been talking about it ever since.
doesn't want us to question him further and is not willing to say anything
I have held back nothing in this statement. Therefore, if
questioned about this matter in the future, I will simply refer the questioner
back to this release.
The Berkshire Hathaway Annual Meeting is typically a
marathon of openness and transparency. Buffet has been known to stay on stage
at the revival-style event, this year scheduled for April 30, for up to eight
hours. But Berkshire Hathaway has an Achilles heel. Buffett's storied
forthcoming manner is not going to carry over to this case:
author of "The Snowball: Warren Buffett and the Business of Life":
ORIGINALLY I didn't think Buffett was going to entertain questions on this
subject at the meeting. I think he'll talk about it for maybe five or ten
minutes in a statement at the beginning of the meeting, much of which time will
be a recap of what happened. He could then cite litigation as a reason for why
he can't have an open-ended discussion and take questions.
I've written several articles about this case because it
fascinates me to see an iconic figure stumble. Call it schadenfreude. Or just call it my natural cynicism. Either
way, I'm gratified that my first hunch - it's not a case of insider
trading but one of an agent/fiduciary taking advantage of his trusted position
to benefit himself first - has been ratified.
Read this article in its entirety at the re: The Auditors, a blog
by Francine McKenna.