Berkshire's Sokol Quits After Lubrizol Purchases

Mr. Buffett, Berkshire's chief executive and chairman, said in a statement Wednesday that Mr. Sokol had told him he owned shares in the chemical company, Lubrizol Corp., when they first discussed the deal in January. Mr. Buffett said "neither Dave nor I feel his Lubrizol purchases were in any way unlawful" and weren't a factor in his decision to resign.

Instead, Mr. Buffett said Mr. Sokol wrote in a letter of resignation on March 28 that he wanted to "invest my family's resources in such a way as to create enduring equity value and hopefully an enterprise which will provide opportunity for my descendents and funding for my philanthropic interests."

Mr. Sokol purchased 2,300 shares of Lubrizol on Dec. 14, which he then sold on Dec. 21, Mr. Buffett said. He then bought 96,060 shares in early January with an order to pay no more than $104 a share.

Berkshire said March 14 that it had agreed to acquire Lubrizol for $9 billion, or $135 a share.

Mr. Sokol's stake may have earned a profit of about $3 million in less than three months.