Former Berkshire Hathaway executive David Sokol insisted he did nothing wrong in buying stock in a company that he then suggested Berkshire acquire, and said he has in past invested in companies he then recommended to Warren Buffett.
“I don’t believe that I did anything wrong,” Sokol told CNBC television today in an interview. “I can understand the appearance issue and that’s why we made it public,” said Sokol, whom many investors saw as the most likely successor to Berkshire Hathaway's iconic CEO.
Buffett released a letter on Wednesday disclosing that Sokol bought a substantial stake in Lubrizol Corp before urging Buffett to acquire the company, which the "Oracle of Omaha" did this month.
In a half-hour interview, Sokol insisted he never had any inside information on Lubrizol and that he bought the shares solely as a good investment for his family, with no expectation that Buffett would actually move forward on a deal.
Sokol also said he has on past occasions invested in companies that he suggested Buffett buy, noting one example of a bank that Buffett did not ultimately acquire.
Sokol resigned March 28. He said Buffett did not try to talk him out of resigning.
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