Shocker: Warren Buffett Admits Mistake!
5:48 pm, April 27th | by Hillary Reinsberg
Not unlike Steve Jobs’ quasi-admission today that he made a mistake with the iPhone’s location tracking data, Berkshire Hathaway chairman Warren Buffett is finally conceding to what we all already knew – that what Dave Sokol did was wrong. After much denial, Berkshire Hathaway announced in a scathing report this afternoon that Buffett’s recently resigned one-time heir apparent at the company did indeed violate its ethics policy according to DealBook.
Sokol stepped down from Berkshire Hathaway three weeks ago, saying he wanted to refocus on investing his own money. But we had a feeling that wasn’t the whole truth. In conjunction with his resignation, Sokol and Buffett disclosed that Sokol had invested in a specialty chemicals manufacturer called Lubrizol and then convinced Berkshire Hathaway to buy the company two months later. Buffett claimed unaware that Sokol had recently bought stock in Lubrizol prior to the purchase
Buffett initially took the position that Sokol did nothing wrong, but today’s report reverses that stand and says Sokol “fell short of the degree of candor required of a corporate fiduciary” and had “intended to deceive.”After receiving three weeks of bad press for backing Sokol, it seems like Buffett peered into his oracle and decided that he wanted to go back to a future where he is again coddled by the financial press instead of called out by them.