Sokol’s Statements on CNBC Contradict Lubrizol’s Proxy Statement

In an article posted earlier today, we provided the video of David Sokol’s CNBC appearance along with commentary regarding his statements. As part of that article, we raised the issue of Mr. Sokol’s statements on CNBC contradicting the Lubrizol proxy statement account of the development of the transaction with specific reference to Mr. Sokol’s characterization of his discussions with bankers at Citigroup on December 13, 2010. Read this article for a more extended discussion on this topic.

Sokol’s Resignation Raises Questions Regarding Lubrizol Transaction

In a press release issued this afternoon, Berkshire Hathaway Chairman and CEO Warren Buffett announced the resignation of David Sokol. Mr. Sokol served as Chairman of several Berkshire subsidiaries and many observers, including The Rational Walk, previously believed that he was the front runner to eventually assume the CEO position at Berkshire Hathaway. Read this article for our views on the resignation.

Berkshire’s Investment Write-Downs: “Gotcha Moment” or Difference of Opinion?

It should come as no surprise to careful readers of Berkshire Hathaway’s financial statements that the company recorded an “other-than-temporary impairment loss” of $938 million in the fourth quarter of 2010 related to declines in the market value of certain equity securities. However, recent media reports seem to treat recent revelations of correspondence between Berkshire and the SEC as a “gotcha moment”. We take a look at this question in this article.

Berkshire’s Ajit Jain Comments on Indian Insurance Market, Japan, and Succession Issues

The Times of India has published a rare interview with Ajit Jain which coincides with Warren Buffett’s arrival in Bangalore today. Mr. Buffett’s trip to India coincides with the company’s entry into the Indian auto insurance industry through Berkshireinsurance.com, a majority owned subsidiary that has a direct sales strategy similar to Berkshire’s GEICO division. Read this article for more details.

In Search of the “Buffett Premium” Free Sample Now Available on Scribd

The Rational Walk is pleased to make the free sample of Berkshire Hathaway: In Search of the “Buffett Premium” available in the Scribd format for readers who prefer to review the sample online rather than downloading the PDF file we previously made available. Other websites and blogs may use the Scribd embedding code to present the sample to their readers as well.

Buffett Bags a Zebra: An Initial Look at Lubrizol Corporation

Berkshire Hathaway and The Lubrizol Corporation have announced a definitive agreement for Berkshire to acquire 100 percent of outstanding Lubrizol shares for $135 per share in an all-cash transaction. The transaction, announced before the start of trading on Monday, March 14, represents a 28 percent premium for shareholders of Lubrizol in a transaction worth $9.7 billion including the assumption of $0.7 billion in net debt. The transaction comes two weeks after Berkshire Hathaway Chairman and CEO Warren Buffett indicated that his “elephant gun has been reloaded, and my trigger finger is itchy.” Read this article for more details.