Warren Buffett Faces Insider Trading: A Case Study | Zendy

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Warren Buffett Faces Insider Trading: A Case Study

Author(s) -

Christian Koch

Publication year - 2020

Publication title -

muma business review

Language(s) - English

Resource type - Journals

ISSN - 2640-6373

DOI - 10.28945/4631

Subject(s) - insider trading , insider , position (finance) , subsidiary , management , law and economics , political science , business , economics , law , finance , multinational corporation

In March 2011, Warren Buffett stepped into chaos. The Chairman of one of Berkshire Hathaway subsidiaries, David Sokol, had resigned his position, but there was more to the story. As soon as Buffett is informed of the insider trading claim, the situation turns into a decision-making problem with four core elements: 1) Managerially difficult; 2) Emotionally charged; 3) Intense media coverage; 4) Ethical and moral paradox. This case study explores the issues and Buffett’s response to the insider trading example.

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