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The Resignation of David Sokol: Mountain or Molehill for Berkshire Hathaway

The Resignation of David Sokol: Mountain or Molehill for Berkshire Hathaway

By
David F. Larcker, Brian Tayan
Stanford Closer Look Series. April
2011

In 2011, David Sokol, CEO of Berkshire Hathaway’s energy subsidiary, purchased $10 million of Lubrizol stock days before recommending that Berkshire Hathaway acquire the firm. Did Sokol’s actions reflect a broad governance failure for the firm?