One of Warren Buffett's top
executives at Berkshire Hathaway has resigned amidst a swirl of insider
trading controversy. Former MidAmerican CEO David Sokol bought $10 million
worth of Lubrizol LZ before he suggested a Berkshire-Hathaway buyout
of the company to Buffett.
Lubrizol stock jumped nearly 30% on the news that Berkshire would acquire the company. Sokol made nearly $3 million on the deal. And he is insisting that he did nothing wrong.
Individual investors are up in arms about this case, as it appears inappropriate, at best.
"I'll say this: if Sokol didn't break the letter of the law, he violated its spirit," said Ian Wyatt, of Wyatt Investment Research. "And this is exactly what's wrong with Wall Street and securities law enforcement. We all have the sense that Wall Street insiders can use their advantage to line their pockets. This Sokol story is a perfect example."
One way individual investors can level the playing field for themselves is with dividend stocks. Research shows that nearly 70% of long-term stock market gains come from dividend income. You can access a Wyatt Investment Research report that features 7%, 8% and 10% dividend stocks.
Click HERE.
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Individual investors are up in arms about this case, as it appears inappropriate, at best.
"I'll say this: if Sokol didn't break the letter of the law, he violated its spirit," said Ian Wyatt, of Wyatt Investment Research. "And this is exactly what's wrong with Wall Street and securities law enforcement. We all have the sense that Wall Street insiders can use their advantage to line their pockets. This Sokol story is a perfect example."
One way individual investors can level the playing field for themselves is with dividend stocks. Research shows that nearly 70% of long-term stock market gains come from dividend income. You can access a Wyatt Investment Research report that features 7%, 8% and 10% dividend stocks.
Click HERE.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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