Comments on: Did Sokol violate Berkshire policies? http://blogs.reuters.com/felix-salmon/2011/04/06/did-sokol-violate-berkshire-policies/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Woltmann http://blogs.reuters.com/felix-salmon/2011/04/06/did-sokol-violate-berkshire-policies/comment-page-1/#comment-25681 Fri, 08 Apr 2011 14:30:22 +0000 http://blogs.reuters.com/felix-salmon/?p=7854#comment-25681 During the last Free Money and Loan Guarantee Gala The Federal Government threw for Wall Street, Buffett jumped into the Party by going partners with GS throwing $5B liquidity into the everyone gets a cut of the action table. Buffett knew full well GS had unlimited access to the discount window no matter the quality of the paper being passed and Buffett knew all GS’s cheese positions AIG were going to be covered by the bailout. Tell me where is there not inside information bouncing all around Berkshire. Buffett made a ton of money on this sure bet based on inside information! Just what Berkshire policies is who being accused of violating here?

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By: hsvkitty http://blogs.reuters.com/felix-salmon/2011/04/06/did-sokol-violate-berkshire-policies/comment-page-1/#comment-25668 Thu, 07 Apr 2011 17:29:48 +0000 http://blogs.reuters.com/felix-salmon/?p=7854#comment-25668 Those in business will happily say f’morality, this is business. But business ethics and lack thereof are also a part of business and in this case ensconced in their business code as well.

So, YES>

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By: Eric_H http://blogs.reuters.com/felix-salmon/2011/04/06/did-sokol-violate-berkshire-policies/comment-page-1/#comment-25662 Thu, 07 Apr 2011 14:28:53 +0000 http://blogs.reuters.com/felix-salmon/?p=7854#comment-25662 Sokol’s analysis was paid for by Berkshire, so they had first dibs on his report and recommendations. He may not have violated any laws, but he certainly didn’t act ethically wrt Berkshire.

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By: klhoughton http://blogs.reuters.com/felix-salmon/2011/04/06/did-sokol-violate-berkshire-policies/comment-page-1/#comment-25651 Thu, 07 Apr 2011 01:20:28 +0000 http://blogs.reuters.com/felix-salmon/?p=7854#comment-25651 What AdamJ123 Said.

BH != Warren Buffett. If a senior member of BH plans to suggest acquisition, BH is actively considering the acquisition.

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By: AdamJ23 http://blogs.reuters.com/felix-salmon/2011/04/06/did-sokol-violate-berkshire-policies/comment-page-1/#comment-25644 Wed, 06 Apr 2011 22:29:24 +0000 http://blogs.reuters.com/felix-salmon/?p=7854#comment-25644 dWj- Yes.

Your argument is illogical- It’s blatantly unethical and a conflict of interest- Sokol was trading on the nonpublic information that Hathaway would soon be considering the company as an investment. In fact, one could easily argue that Hathaway was already considering the company as an investment- it is Sokol’s job after all to find good companies to invest in.

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By: dWj http://blogs.reuters.com/felix-salmon/2011/04/06/did-sokol-violate-berkshire-policies/comment-page-1/#comment-25635 Wed, 06 Apr 2011 20:14:48 +0000 http://blogs.reuters.com/felix-salmon/?p=7854#comment-25635 > If it’s wrong to trade in a stock while Buffett’s considering it, then it’s wrong to trade in that same stock in advance of Buffett’s consideration.

No.

I can see that this creates bad appearances, but in a world in which we were allowed to be naive, I can’t imagine that these would be remotely the same thing. The worst thing he did was to create an appearance of conflict; there was no actual conflict at any point, and a policy that your suggesting — that he decline to bring ideas to Buffett that Buffett might like — would hurt Berkshire shareholders and acquisition target shareholders while benefiting nobody.

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By: 3oosion http://blogs.reuters.com/felix-salmon/2011/04/06/did-sokol-violate-berkshire-policies/comment-page-1/#comment-25634 Wed, 06 Apr 2011 19:27:27 +0000 http://blogs.reuters.com/felix-salmon/?p=7854#comment-25634 The WSJ also posted BRK’s insider trading policy. http://s.wsj.net/public/resources/docume nts/BerkApr6_2011.pdf

You can’t buy if you have material non-public information in a company in which BRK “may in the future invest.”

Knowledge that BRK’s bankers were pushing LZ and that you plan to discuss with Buffett certainly sounds like material non-public information.

No “will actively consider” language here.

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