March 31, 2011 by staff
David Sokol, David Sokol, once considered to succeed Warren Buffett, resigned yesterday. The financial media are speculating he resigned because he bought, 000 shares of Lubrizol (LZ) before its acquisition by Berkshire Hathaway. Some argue that this does Sokol qualifies as insider trading.
Sokol argues that he had no control over the decisions of Warren Buffett, if what he did is not illegal.
We do not think the resignation of David Sokol has something to insider trading in shares of Lubrizol. Warren Buffett unusually issued a statement that clearly stated Sokol resignation is unrelated to insider trading.
He said he knew that Lubrizol Sokol held shares before he made the decision to buy the company. Warren Buffett does not call for the resignation Sokol, it was the decision Sokol. “Neither Dave nor I feel Lubrizol purchases were illegal in any way. He told me they were not a factor in his decision to resign,” Buffett said in his press release.
So why David Sokol resign?
Monkey Insider, your source for insider trading data for free, said David Sokol resigned to “run out of South America with Lindsay Lohan.”
Last week, India, Warren Buffett said Berkshire is ready for anything, including Ben Bernanke resign and run off to South America with Lindsay Lohan. Berkshire Hathaway custody and $ 10 in cash for these types of “just in case” situations. Obviously, the opportunity cost of holding cash and 10 dollars is very high. This implies, it is likely Bernanke could flee with Lindsay Lohan. By the same logic, it also means it is likely that David Sokol can run away with Lindsay Lohan.
It is also possible that prior statements of Warren Buffett on Lindsay Lohan could have hurt her and made her take the initiative to call David Sokol Voyage to South America as well. Everyone knows how much Lindsay Lohan loves alcohol and they are great batidas Brazil. Knowing that Warren Buffett is an honest man, we believe him when he told Dave Sokol resignation has nothing to do with insider trading. This means it is more likely that Dave Sokol resigned to flee to South America with Lindsay Lohan.
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