Berkshire's Apparent Heir Suddenly Resigns

David Sokol, Warren Buffet's #1 right-handed man, suddenly quits! Sokol's resignation came shortly after Sokol buys shares in a company that he originally suggested to Buffet. This is linked with to a business deal with Lubrizol Corp and Berkshire. Apparently, the transaction was not at arm's length. However, Buffet himself believes nothing unlawful had happened: "neither Dave nor I feel his Lubrizol purchases were in any way unlawful." 

According to WSJ, Mr. Buffett said Mr. Sokol wrote in a letter of resignation on March 28 that he wanted to "invest my family's resources in such a way as to create enduring equity value and hopefully an enterprise which will provide opportunity for my descendants and funding for my philanthropic interests." 

Clearly, these two are very different predictions. So what's the truth? At the moment SEC has declined to comment whether they will investigate this matter. 

If I was an apparent heir to Berkshire, would I quit at a moment's notice? Now speculations are rising on who the successor will be. Other candidates that are still in the race include Ajit Jain, the head of Berkshire's reinsurance operation, and Matt Rose, the CEO of Berkshire' railroad, Burlington Northern Santa Fe.

Because Warren Buffet is known for his high standard of moral and ethics, especially with his 99% pledge to donate his wealth, this news has tarnished the good reputation of Berkshire. The company's B shares declined 3.2% in after-hours trading.