This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The 5 Dumbest Things on Wall Street This Week: Jan. 11

5. Sokol's Low Blow

Say it ain't so, Sokol! We knew you were a shady character, but we didn't think you were this dark.

One-time Berkshire Hathaway (BRK-A) big shot David Sokol mocked his former mentor, Warren Buffett, last Friday, scorning the billionaire investor after regulators cleared him of any wrongdoing regarding the trade that led to his March 2011 resignation. Sokol, in case you've forgotten, was once Buffett's golden boy, as well as a leading candidate to succeed the octogenarian as chief of the $232 billion dollar holding company. He fell from grace, however, after it was revealed he personally bought a boatload of Lubrizol shares before pitching the chemical maker to Buffett as an ideal investment for Berkshire.

Buffett initially backed Sokol after the Lubrizol trade blew up in the press, saying Sokol's actions were not "in any way unlawful." Nevertheless, he eventually turned on his protégé after digging deeper into the details of Sokol's shenanigans.

"I will never understand why Mr. Buffett chose to hurt my family in such a way, but given that he is rapidly approaching his judgement sic day, I will leave his verdict to a higher power," Sokol wrote to The Wall Street Journal.

A "higher power"? That's a sick thing to say. We may have had our own issues with Buffett's behavior in the past, but that's way beyond the pale.

Moreover, the notion that Sokol's family was harmed in any manner, well, that's plain ludicrous. Sokol pocketed nearly $3 million on his $10 million investment when Berkshire agreed to buy Lubrizol only a few months after he brought it to Buffett's attention. Sokol's net worth -- thanks to Buffett's benevolence -- is reportedly well over a hundred million dollars.

As for why the SEC dropped the investigation, we can only imagine it couldn't concretely prove that Sokol knew Berkshire was going to buy Lubrizol before he personally dipped his big toe in.

And as to what Warren Buffett ever saw in this shyster in the first place?

Clearly, the Oracle of Omaha had a pretty severe blind spot in this case.

1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AIG $57.51 0.14%
ARAY $9.00 0.00%
GOOG $535.38 2.16%
SHLD $42.70 0.23%
AAPL $127.60 2.28%

Markets

DOW 18,034.93 +208.63 1.17%
S&P 500 2,100.40 +19.22 0.92%
NASDAQ 4,994.6020 +62.7870 1.27%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs