Warren Buffett squares up to his critics at Omaha meeting

Posted on April 30, 2011

Shareholders in Berkshire, the $200bn (£120bn) conglomerate whose success has turned Mr Buffett into the world’s third-richest man, descended on Omaha this weekend, from as far afield as Australia and South Africa.
Many of the approximately 40,000 attending were already en route when Berkshire turned its fire late last week on David Sokol, until recently seen as the most likely successor to Mr Buffett and the man who has cast a cloud over the company so far this year.
A report from Berkshire’s audit committee accused Mr Sokol of making “misleadingly incomplete” disclosures about $10m of shares he acquired in Lubrizol, a US chemicals maker he recommended that Berkshire consider buying. Mr Sokol, who resigned at the end of March, has said he’s done nothing wrong.
The episode, which the Securities and Exchange Commission is reported to be investigating, has prompted criticism of internal controls at Berkshire, Mr Buffett’s judgement and intensified anxiety on Wall Street over who will eventually succeed the 80 year old.
David Shapiro, a shareholder who had flown in from South Africa, said he was not troubled by the incident. “I don’t think it’s as serious as has been made out. A lot of his (Mr Buffett’s) supporters are here.” The quest to learn something from Mr Buffett was echoed by other shareholders, or Berkies as they are known in Nebraska.

Shareholders in Berkshire, the $200bn (£120bn) conglomerate whose success has turned Mr Buffett into the world’s third-richest man, descended on Omaha this weekend, from as far afield as Australia and South Africa.Many of the approximately 40,000 attending were already en route when Berkshire turned its fire late last week on David Sokol, until recently seen as the most likely successor to Mr Buffett and the man who has cast a cloud over the company so far this year.A report from Berkshire’s audit committee accused Mr Sokol of making “misleadingly incomplete” disclosures about $10m of shares he acquired in Lubrizol, a US chemicals maker he recommended that Berkshire consider buying. Mr Sokol, who resigned at the end of March, has said he’s done nothing wrong.The episode, which the Securities and Exchange Commission is reported to be investigating, has prompted criticism of internal controls at Berkshire, Mr Buffett’s judgement and intensified anxiety on Wall Street over who will eventually succeed the 80 year old.David Shapiro, a shareholder who had flown in from South Africa, said he was not troubled by the incident. “I don’t think it’s as serious as has been made out. A lot of his (Mr Buffett’s) supporters are here.” The quest to learn something from Mr Buffett was echoed by other shareholders, or Berkies as they are known in Nebraska.

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