What was David Sokol thinking?

What was he thinking? His boss and presumed mentor Warren Buffet would have found out. And surely he knew that the SEC monitors trades like these – he would have gotten caught!

How can someone work so long with an icon like Buffet and still pull such second-rate-Martha-Stewartesque shenanigans? Surely some sense of ethic would have rubbed off on Sokol?

Maybe Sokol didn’t know that Berkshire was talking to Lubrizol? Maybe Sokol’s personal investment advisors engineered the whole transaction and forgot to tell him? Maybe Sokol thought that “stock in Lubrizol” was actually “inventory” of motor oil for his classic car collection?

And what is Warren Buffet thinking? He seems to be defending Sokol, saying that his departure has nothing to do with these transactions, er, this alleged insider trading. Does he understand what happened?

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About Mark P. Holtzman

Chair of Accounting Department at Seton Hall University. PhD from The University of Texas at Austin. Worked at Deloitte's New York Office. BSBA from Hofstra University.

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