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Buffet's diehards read this
erifloss
#1 Posted : Tuesday, April 26, 2011 8:33:03 AM
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Joined: 6/21/2010
Posts: 514
Location: Nairobi
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
'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary
VituVingiSana
#2 Posted : Tuesday, April 26, 2011 9:42:50 AM
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Joined: 1/3/2007
Posts: 18,354
Location: Nairobi
Nonsense... What WB did was fire the chap...

It is not WB's job to prosecute Sokol, if there was wrongdoing, but the SEC's job...

As Sokol's boss... what WB was fire the guy...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Genghis Khan
#3 Posted : Tuesday, April 26, 2011 10:07:07 AM
Rank: Member

Joined: 8/5/2010
Posts: 335
Location: Nairobi
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"?
"I'd rather be lucky than clever... every time!" - ME
"The problem is not what we don't know... it's what we know for sure that just ain't!" - MARK TWAIN
"Space we can recover... time never!" - NAPOLEON BONAPARTE
erifloss
#4 Posted : Tuesday, April 26, 2011 10:28:49 AM
Rank: Member

Joined: 6/21/2010
Posts: 514
Location: Nairobi
VituVingiSana wrote:
Nonsense... What WB did was fire the chap...

It is not WB's job to prosecute Sokol, if there was wrongdoing, but the SEC's job...

As Sokol's boss... what WB was fire the guy...

But you have to agree that with so many of these problems of late occurring under WB's watch is a big problem.
And remember Sokol mumbled this in a meeting that WB was at, why did he still go for the deal knowing this?
'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary
VituVingiSana
#5 Posted : Tuesday, April 26, 2011 1:41:37 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,354
Location: Nairobi
erifloss wrote:
VituVingiSana wrote:
Nonsense... What WB did was fire the chap...

It is not WB's job to prosecute Sokol, if there was wrongdoing, but the SEC's job...

As Sokol's boss... what WB was fire the guy...

But you have to agree that with so many of these problems of late occurring under WB's watch is a big problem.
And remember Sokol mumbled this in a meeting that WB was at, why did he still go for the deal knowing this?

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...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
VituVingiSana
#6 Posted : Thursday, April 28, 2011 12:14:13 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,354
Location: Nairobi
Sokol is in hot soup... You do not deceive WB & get away with it...
http://www.reuters.com/a...pe=nl&feedName=usdai
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
youcan'tstopusnow
#7 Posted : Thursday, April 28, 2011 9:41:02 PM
Rank: Chief

Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
[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?
GOD BLESS YOUR LIFE
VituVingiSana
#8 Posted : Thursday, April 28, 2011 9:48:00 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,354
Location: Nairobi
youcan'tstopusnow wrote:
[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?


Note: From what I have read, there is NOTHING wrong with the Lubrizol [as a firm/business] but the issue is with the 'insider' trading of the shares...

These are different issues...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
erifloss
#9 Posted : Friday, April 29, 2011 8:23:29 AM
Rank: Member

Joined: 6/21/2010
Posts: 514
Location: Nairobi
VituVingiSana wrote:
erifloss wrote:
VituVingiSana wrote:
Nonsense... What WB did was fire the chap...

It is not WB's job to prosecute Sokol, if there was wrongdoing, but the SEC's job...

As Sokol's boss... what WB was fire the guy...

But you have to agree that with so many of these problems of late occurring under WB's watch is a big problem.
And remember Sokol mumbled this in a meeting that WB was at, why did he still go for the deal knowing this?

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...

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.
'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary
erifloss
#10 Posted : Friday, April 29, 2011 10:43:16 AM
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Joined: 6/21/2010
Posts: 514
Location: Nairobi
This Sokol issue is really eating into WB's credibility.
http://blogs.reuters.com...eaning-up-buffetts-mess/
'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary
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