31st March 2011
Jerome writes: "The whole thing is weird. Sounds like Sokol did nothing illegal in buying lz, but it's unethical and dumb especially as it's not enough money to make a meaningful difference to him. More interesting to me is that it casts doubt on the image Buffett's worked so hard to project that Berkshire's execs are content making less than they would elsewhere because of the pure joy of it. Sokol clearly wants the opportunity to create more personal wealth, and finally got sick of the fact that that's not possible at Berkshire. It also casts doubt on the other myth in which Buffett is so personally invested: that Berkshire is effectively manageable as an operating company and the world's largest dealshop by a skeletal staff who disdain bankers, consultants and accounting firms, purely on the strength of their ethics and common sense.