Middleburg Financial, a small bank holding company with a base of operations in the prosperous suburbs of Northern Virginia, has been in the news over the past few days due to David Sokol’s comments on CNBC indicating that he plans to build a “mini-Berkshire” after resigning from Berkshire Hathaway in the wake of revelations regarding his trading in shares of Lubrizol Corporation. Read this article for our opinion on whether Mr. Sokol will use Middleburg Financial as the base for his future business activities.
While Todd Combs has been at the center of a frenzy of speculation regarding Berkshire Hathaway’s succession planning this week, longtime Berkshire shareholders understand that the choice of a future Chief Executive Officer is a far more important question. The investment managers at Berkshire will all report to the future CEO who will have ultimate accountability for all capital allocation decisions. Read this article for our continuing coverage of David Sokol’s investment in Middleburg Financial.
Middleburg Financial Corporation is a small bank holding company with primary operations in the western suburbs of Washington D.C. The bank’s headquarters are in Middleburg, Virginia. Over the past two years, David Sokol has accumulated nearly twenty percent of the bank’s outstanding shares in his personal accounts. Mr. Sokol is Chairman of MidAmerican Energy Holdings and Chairman and CEO of NetJets, both of which are subsidiaries of Berkshire Hathaway. Since Mr. Sokol is often mentioned as a potential future CEO of Berkshire Hathaway and would be responsible for allocation of capital, we found it interesting to learn of his significant personal investment in Middleburg Financial and decided to take a closer look. Read this article for more details.