An interesting read. It goes to show that we are all in it for the money no matter what.
www.reuters.com/article/...tt-idUSTRE73O2BH20110425

I believe this is what is called insider trading? How is it defined? Where are the lines drawn?

Sokol, a senior exec. at BH buys $10m - GUILTY?

If Mrs. Smith, a PA to Sokol sees the docs in the office and buys $10k? - GUILTY?

There are rumours going round about the impending acquisition and a disassociated investor takes $1m worth. - NOT GUILTY?

Sokol & Smith have an obligation to stay away while the rumormongers and Co. "participate"?

1) Erm, what 'other' problems recently? Please do tell us...
2) So, WB going for a good deal coz Sokol 'mumbled' about buying some shares makes it a 'problem'?
[As long as the DEAL was GOOD for Berkshire... just coz Sokol owned/bought shares does not mean WB should not buy it. Not doing a legit good deal would be the problem!]

Kwani, if Sokol hid his share purchases [or the full extent] from his boss does NOT make the deal [purchase of Lubrizol] a bad deal as long as WB did the Due Diligence...

[quote=VituVingiSana]Sokol is in hot soup... You do not deceive WB & get away with it...
http://www.reuters.com/a...e=nl&feedName=usdai[/quote]
Is the deal still good for Berkshire?

1. Allegations of inflating results of some firms BH owns and actually the SEC won some of the suits. I'm not saying that the father should be blamed for the sins of the son but the father should no better & institute better measures.
2. When WB invested in Goldman Sachs, it actually showed him in the light of giving an ok to 'gamble banking' as opposed to his value based investment strategy.
3. His investment in Moody's one of the rating agencies that rated sub-prime CDO's AAA.
4. I do agree he shouldn't let a good investment pass by coz of his associates but he should know better & ensure disclosure of various interested parties to the investing public. This is actually the reason why some of BH's shareholders are filing suits against it.

1) Which firms? Were they the firms Sokol was running? [At some point, you trust managers & auditors. WB doesn't personally run these firms but somehow it will be fixed.
2) WB made a BRILLIANT investment decision. He looked the IBs & decided to invest in GS. He did not make an illegal trade. He invested in VALUE. He made a 'loan' [not equity investment] at a very good return! WB did not screw up the system. He warned against Fannie Mae, Freddie Mac & Derivatives!
3) So he invested in Moodys. As an investment! Nothing illegal. If Moodys screwed up, how does that reflect on WB. Kwani, WB runs Moodys? NO. I do not think he is even on the Board of Moodys.
4) Deals are closed BEFORE the information is made public or there would be speculation driving up the price. As for what Sokol did, well... he will pay for it. WB fired him.

All the reasons you gave indicate that you blame WB for his investment choices [which are smart investments] but for firms he doesn't run. In each case, WB was merely investor.

Will Ajit Jain replace Buffett as CEO?

http://www.xe.com/news/2.../1869621.htm?c=1&t=

http://en.wikipedia.org/wiki/Ajit_Jain

@hisah, all that has made investors realize that Africa is the next(current) viable investment destination.
I remember a guy saying that facebook & twitter has done what the CIA failed to do & wished they could have done & the guys who first found this best use were not the Americans or Europeans but Africans.

Scandal taints Buffett's status as american hero www.businessdailyafrica....8/-/5q6yigz/-/index.html