The Man Who Almost Replaced Warren Buffett

January 25, 2026 - 19:34

For years, David Sokol was considered the frontrunner to eventually succeed the legendary Warren Buffett at the helm of the sprawling Berkshire Hathaway conglomerate. A trusted lieutenant, Sokol successfully led key subsidiaries like NetJets and MidAmerican Energy, earning public praise from Buffett himself. His operational prowess and understanding of the Berkshire culture positioned him as the most logical successor in the eyes of many investors and analysts.

This presumed succession plan unraveled abruptly in 2011. The controversy centered on Sokol's personal purchase of shares in Lubrizol, a chemical company, shortly before he recommended that Berkshire acquire it. When Berkshire did proceed with the multi-billion dollar takeover, the value of Sokol's holdings soared.

While Sokol maintained he did nothing wrong and had no inside information, the incident raised immediate questions about judgment and the appearance of impropriety. Warren Buffett, a staunch defender of Berkshire's reputation for integrity, announced Sokol's resignation shortly thereafter. The episode served as a stark reminder that at Berkshire Hathaway, perceived ethical standards are held in the highest regard, sometimes even above managerial talent. The departure left the question of succession more open than ever, closing a chapter on what many believed was a destined leadership transition.