A Lesson from Warren Buffet about Ethical Blind Spots

Harvard Business Review

The data seem clear on David Sokol's conflict of interest in the Berkshire/Lubrizol deal. But he clearly had information that the public didn't have — that the probability of the acquisition was elevated. The far more interesting question from our standpoint is why Warren Buffett, known for his embrace of ethical business practices, failed to understand the unethicality of Sokol's actions when he learned of them, and intervene.