We're not privy, but you have to imagine that Buffett was put in an untenable position when he found that Sokol owned 100k shares and it would need to go on the reg report. If Sokol had owned it for a few years that's an investment, but he bought the stuff in January. It would've been on Sokol's back for years.
Apparent in this trade is sokol's lack of ethics,he probably knew buffet wasn't going to hand him the reins,even tho he thought he deserved it, this trade was probably an effort to blacken berkshires pristine image on his way out,berkshires help when the chips were down ,probably bought him some pull with SEC,fed,they will get a slap on the wrist fine and no admitting to a crime
As if buying GS at a discount, with free warrants, only after a direct line for GS to suck at the FED/Treasury tit was approved, wasn't the ultimate insider trading transaction. Buffett is no choir boy from the church, and apparently he has abused the system so much, that now he thinks he is entitled to keep abusing, and his word is law.
There is nothing 'immmoral' about what he did, his trades was public and he didn't try to hide his trades. His recommendations were open in the public and he knew his phone records were tapped too. He bought shares of a company that he kew his fund was making a buy out offer? same as insider trading isn't it. As for market rules or SEC 'rules' that is another he needs to talk to his lawyer about. btw: insider information and front-running is not 'immoral' but illegal. insider information and front-running and market manipulation was not illegal in the 1920's and only illegal after 1934 SEC
I doubt what he did was illegal, people talk their book all the time. Buffett makes his own decisions
i am pretty sure,not an atty, that buying a stock in your personal acct,whilst working with that company to negotiate a buyout for berkshire whio you work for is almost a textbook example of insider buying,buying with prehand knowledge,that is not public info, when the info became public would have to be determined,and would have to be proved it was before sokol bought
He has a $3 million profit incentive for doing this. That is his annual salary working at Berkshire? hedge funds and mutual funds ban this kind of activity. He was fired rather than quit. he bought what like 3 months before bershire bought lubrizol? it wasn't an investment but a trade---insider trading. a $3 million dollar incentive. yeah that is $3 million ---risk free--- trade. that is how investment bankers like goldman sachs makes their profit. these guys have information not available to the 'general public' and not even investors of the public acquiring or being acquired. When Berkshire buys any company they take months of 'research' and as a executive, he should know. Buffet doesn't make his own decisions, he has group or board make decisions. Buffet isn't buying the company with his own company, the money is the investors money.
What i dont get is why go on air? ...if you turn on CNBC soundbites are being aired pretty much all day today...is this a good strategy? cmon meng.
That's why executives are normally restricted; as are analysts, IBs, etc. If this isn't insider trading then it doesn't exist.
martha stewart did time for about $45k...if te sec, congress senate lawmakers aren't going to do anything,we can send in gomer pyle for a citazens arrest