When: Today, March 31st at 7:30AM ET
Where: CNBC’s “Squawk Box”
Following are excerpts from the unofficial transcript of a CNBC interview with David Sokol, outgoing Berkshire Hathaway Executive, outgoing NetJets CEO and outgoing MidAmerican Energy Chairman, on CNBC’s “Squawk Box” today, Thursday, March 31st at 7:30AM ET.
The full interview can be found on CNBC.com: http://www.cnbc.com/id/15840232?video=3000014033&play=1.
SOKOL ON HIS RESIGNATION:
LET ME START THERE WITH THE MOST IMPORTANT ISSUE, THE RESIGNATION, THIS HAS BEEN IN MY MIND, BREWING FOR 2 AND A HALF YEARS.
SOKOL ON BUILDING A MINI BERKSHIRE:
WHAT I'VE WANTED TO DO THE PAST 2 AND A HALF YEARS IS STEP BACK AND BASICALLY STEP BACK INVEST FAMILY MONEY, BUILD A MINI-BERKSHIRE. OBVIOUSLY NOT THE INSURANCE SIDE BECAUSE I DON'T HAVE ANY EXPERTISE THERE BUT INVEST OUR MONEY AND CONTROL MY SCHEDULE A LITTLE BIT MORE AFTER 27 YEARS OF BEING A CEO.
SOKOL ON WARREN:
TO BE HONEST WARREN'S NOT GOING ANYWHERE AND BY THE WAY ITS NOT A JOB THAT I WOULD ASPIRE TO BECAUSE NO ONE IS GOING TO DO IT AS WELL AS WARREN DOES AND THERE'S GOING TO BE A LOT OF CHANGE THAT COMES WITH THAT BUT THE REALITY IS WARREN'S NOT GOING ANYWHERE.
SOKOL ON BEING SUCCESSFUL:
WHOEVER REPLACES WARREN WILL NOT GET TO DO IT THE WAY HE DOES IT. HE OWNS 34% OF THE COMPANY AND YOU KNOW NONE OF THAT IS A CRITICISM I ACTUALLY THINK IF I COULD BE A THOUSANDTH AS SUCCESSFUL AS HE IS WHEN IM DONE AND WHEN IM 75 OR 80 ILL BE REAL PLEASED.
SOKOL ON LUBRIZOL DISCLOSURE:
WHOEVER REPLACES WARREN WILL NOT GET TO DO IT THE WAY HE DOES IT. HE OWNS 34% OF THE COMPANY AND YOU KNOW NONE OF THAT IS A CRITICISM I ACTUALLY THINK IF I COULD BE A THOUSANDTH AS SUCCESSFUL AS HE IS WHEN IM DONE AND WHEN IM 75 OR 80 ILL BE REAL PLEASED.
FIRST OF ALL IT WAS IN THE PRESS RELEASE IN AN EFFORT TO BE 100% TRANSPARENT. THE GOAL WHICH IS A LITTLE INTERESTING GIVEN SOME OF THE COMMENTS THAT I'VE READ THAT I THOUGHT FULL DISCLOSURE WAS A GOOD THING AND THE PURPOSE THERE WAS MY OWNERSHIP THERE WOULD COME OUT 30-60 DAYS FROM NOW WHEN THE VOTING TAKES PLACE AND WE DID NOT WANT PEOPLE TO LOOK BACK AND SAY WHY DIDN'T THEY TELL US THAT
SOKOL ON TELLING WARREN:
BECKY: IF YOU HAD TO DO IT OVER AFTER SEEING THE HOOPLAH THAT BROKEN OUT WOULD YOU CHANGE YOUR MIND ON IT?
I GUESS KNOWING TODAY WHAT I KNOW, WHAT I WOULD DO DIFFERENTLY IS THAT I WOULD HAVE NEVER HAVE MENTIONED IT TO WARREN AND JUST MADE MY OWN INVESTMENT AND LEFT IT ALONE.
SOKOL ON WHETHER HE'S BEEN UNETHICAL:
BECKY: IM JUST TRYING TO GET TO HOW ACTIVE YOUR PORTFOLIO IS AND HOW OFTEN YOU MAKE TRADES LIKE THIS IS IT UNUSUAL FOR YOU TO BUY STOCK IN A COMPANY OR IS THIS SOMETHING YOU DO FREQUENTLY HOW ACTIVE IS YOUR PORTFOLIO?
SOKOL: 3-4 DECISIONS A YEAR SO I DON'T TRADE A LOT
BECKY: THIS IS A UNIQUE SITUATION SO YOU SAW AN OPPORTUNITY
SOKOL: THOUGHT IT WAS UNDERVALUED TO BUY A GOOD LONG TERM COMPANY
BECKY: HAS THE SEC CONTACTED YOU AT ALL
SOKOL: NO
BECKY: AND AGAIN BOTH YOU AND WARREN HAVE SAID THAT YOU HAVEN'T DONE ANYTHING UNLAWFUL IN THIS SITUATION, IS IT UNETHICAL?
SOKOL: NO. NOT AT ALL THE REALITY IS I DIDN'T THINK I THOUGHT THERE WAS EVEN A 5% CHANCE THAT WARREN WOULD EVEN ULTIMATELY HAVE AN INTEREST IN THIS COMPANY IT IS AN UNUSUAL COMPANY FOR BERKSHIRE I THOUGHT IT WAS A GOOD COMPANY BASED ON MY PAST EXPERIENCE OF TELLING WARREN HEY I THINK THIS COMPANY IS KIND OF INTERESTING AND HIM NOT HAVING AN INTEREST IN IT .
JOE: BUT THEN WHEN IT HAPPENED AND YOU HAD A 100,000 SHARES IN IT BASICALLY AND ALL OF A SUDDEN IT'S GOING TO HAPPEN AT THAT DIDN'T YOU GO OH MY WORD IM GOING TO MAKE 3 MILLION DOLLARS ON THIS I BROUGHT THE COMPANY TO THEM I BOUGHT THE STOCK BEFORE IT LOOKS LIKE FRONT RUNNING DAVID THAT'S WHAT IT LOOKS LIKE IT DIDN'T AT THAT POINT A LIGHT GO OFF IN YOUR MIND THAT HOLY CRAP I HAVE A PROBLEM?
SOKOL: NO AGAIN I DON'T THINK I HAD A PROBLEM I DON'T THINK I DID ANYTHING INAPPROPRIATE I BOUGHT STOCK IN A COMPANY THAT I THOUGHT WAS A GOOD COMPANY I MENTIONED TO WARREN THAT I THOUGHT THIS COMPANY THAT IF YOU COULD GET A CHANCE TAKE A HARD LOOK AT HE INITIALLY WAS NOT TOO EXCITED ABOUT IT AND THEN GOT MORE INTERESTED LATER.
SOKOL ON LUBRIZOL:
I HAVE NO EXPERTISE WITH LUBRIZOL, I JUST FELT BY DOING A FINANCIAL ANALYSIS THAT THEY WERE A COMPANY THAT HAD POTENTIAL AND SEEMED TO BE FAIRLY VALUED AND IT WAS INTERESTING SO I THINK YOU HAVE TO PUT IT INTO CONTEXT OF WHAT MY RESPONSIBILITIES ARE TO BERKSHIRE AND JUST ME INVESTING PERSONALLY.
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