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Berkshire Hathaway Inc. Chairman and CEO Warren Buffett entered last weekend appearing as vulnerable as he has been in recent memory.
One of his top executives, David Sokol, resigned in late March after admitting he had traded shares in a company Berkshire later agreed to acquire. The revelation put the firm's internal policies under a microscope and created questions about Buffett's judge of character and Berkshire's previously squeaky-clean reputation.
On the business side, the company's reinsurance division carried significant financial exposure to the first quarter's series of Pacific disasters, putting profits at risk.
And underlying those major concerns was the perpetual question of succession, and who was not only the most qualified but the most trusted individual to take the reins of the storied company upon Buffett's departure.
In short, Buffett's answers to those questions during the April 30 annual shareholders meeting resolved little. Berkshire and Sokol appear to be digging in for a nasty fight that could involve a federal investigation, while $1.67 billion in catastrophe losses dragged down the company's insurance underwriting results. Meanwhile, the candidates for future CEO range from everyone to no one, as Berkshire continues to keep its choice secret.
Yet when Buffett signaled the end of the question-and-answer session that serves...