Warren Buffett’s heir apparent David Sokol resigned in late March as a result of his alleged insider trading which scored him a quick $3 million in profit when he bought shares in a company called Lubrizol in January. That was just one week before Sokol recommended that Buffett’s company Berkshire Hathaway invest in Lubrizol, which it did. Buffett had previously said that such investment activity is unethical but now denies that Sokol’s investment in Lubrizol was in any way unlawful. The Securities and Exchange Commission is investigating. Here is the rub. Sokol has said publicly that he was not the first person at Bershire Hathaway to buy shares personally and later profit when selling on those shares. He said Charlie Munger, Buffett’s Vice Chairman bought shares in a Chinese electric car company BYD before Berkshire did. Munger admits this. Buffett’s fortune is valued at about $45 billion which makes him the third richest man in the world.