David Sokol, On CNBC, Explains Lubrizol Debacle (BRK.A, BRK.B, BRK-A, BRK-B, LZ)

David Sokol, former Berkshire Hathaway (BRK.A, BRK.B, BRK-A, BRK-B) employee, was on CNBC today explaining a controversial trade in Lubrizol LZ shares. Lubrizol was acquired by Berkshire Hathaway, which gave the shares a significant premium to their pre-buyout price levels. Sokol agreed to appear on national television to explain his decision to buy shares prior to bringing up the company to the Berkshire Hathaway board, including Warren Buffett, as a possibility for a takeover. Sokol allegedly made millions of dollars in profit on his trade in Lubrizol. David Sokol told Buffett, CEO of Berkshire Hathaway, that he had purchased Lubrizol shares prior to his discussion of the company with Buffett. On CNBC, he said that he "had no control over deal" regarding if or when Buffett might decide to express an interest in acquiring Lubrizol. Defending his disclosure of his position in Lubrizol stock, Sokol said that "it would have been inappropriate not to suggest deal to Buffett," even though Sokol already owned shares of Lubrizol and could benefit from an increase in the stock price. Sokol claims that he did not have access to insider information during his trade of Lubrizol. Sokol also said that the SEC has not contacted him regarding this trade. Nevertheless, Sokol disclosed on CNBC that Buffett did not know the size of Sokol's position - which was tens of thousands of shares at the time - although Sokol did disclose to Buffett that he had "a" position. At the time of Buffett's announcement that Berkshire Hathaway was interested in acquiring Lubrizol, Sokol had a large position in Lubrizol stock and still did not sell even though a takeover looked ripe within the near future. Sokol said that his resignation from Berkshire Hathaway occurred at an appropriate time for he and his family. He said that being the CEO of Berkshire Hathaway was not something to which he aspired.