Thursday, March 31, 2011

Warren Buffett (BRK-A) Accepts Heir-Apparent's Resignation

Contrary to the past actions of Berkshire Hathaway (NYSE:BRK-A) CEO Warren Buffett concerning prior resignation attempts by David Sokol, Chairman, MidAmerican Energy Holdings, and Chairman, President, and CEO of NetJets, this time he accepted the resignation, in what appears to be in response to something that irked Buffett.

Buffett said in a press release, "Dave’s letter was a total surprise to me, despite the two earlier resignation talks. I had spoken with him the previous day about various operating matters and received no hint of his intention to resign. This time, however, I did not attempt to talk him out of his decision and accepted his resignation."

The accepted resignation appears to come from Sokol's acquisition of shares in Lubrizol (NYSE:LZ) before he had attempted to convince Buffett to invest in the company.

While Buffett doesn't believe it was in any way unlawful, the tone of his press release seemed to be that he was somewhat irritated by what could be construed as an impropriety.

As in the past, Sokol said he wants to pursue philanthropic efforts.

Buffett quoted him saying, “As I have mentioned to you in the past, it is my goal to utilize the time remaining in my career 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 descendents and funding for my philanthropic interests. I have no more detailed plan than this because my obligations from Berkshire Hathaway have been my first and only business priority.”

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