OMAHA — Warren Buffett is a cult hero not just because he’s made himself one of the world’s richest people but because he comes across as folksy and, above all, honest. Now, he’s found himself having to explain the questionable behavior of a former top Berkshire Hathaway executive.
David Sokol, left, persuaded his boss to buy a chemical company he had invested in. The value of Sokol’s shares in Lubrizol grew by $3 million, or 29 percent, after Berkshire agreed to buy it March 14.
Sokol’s resignation was announced Wednesday. Berkshire stock fell 2.1 percent Thursday.
Sokol’s actions may not have been illegal, but they are still likely to attract the attention of investigators. “For a company that prides itself so much on its reputation for integrity, you can’t do stuff that doesn’t look right,” said Meyer Shields, an analyst at Stifel Nicolaus. The Associated Press
