Buffett Scandel Could Have Been Worse: Sokol's Other Trade

This story is interesting. David Sokol was one of the people being groomed to succeed Warren Buffett as CEO of Berkshire Hathaway. He was forced to resign in an insider trading scandal.David Sokol bought a lot of shares of Lubirzol for his personal account. Then, he advised Warren Buffett to buyout Lubrizol, and Warren Buffett followed his advice. David Sokol made approximately $3M off his Lubrizol trade.

The Wall Street Journal's Sharon Ng and Jean Eaglesham have an exclusive with David Sokol that's giving us chills.

Money Morning submits: The mood this weekend at Berkshire Hathaway Inc.'s (BRK.A)(BRK.B) annual shareholder meeting could be less festive than usual, darkened by a laundry list of concerns that includes mediocre returns and who eventually will succeed iconic Chief Executive Officer Warren Buffett.

David Sokol, the former heir-apparent to investment star Warren Buffett, broke company insider trading rules when he bought shares ahead of a Berkshire Hathaway acquisition, the company said on Wednesday.Sokol, who resigned as one of Berkshire's top executives in March after a scandal broke over his private investments, "violated company policies" and "violated the duty of candor" he owed the company, an audit committee report said.It said the company might still sue over any damages it perceives from the case, including going after Sokol's trading profits.