The man who almost replaced Warren Buffett

Subscribe to enjoy similar stories. In taking over as chief executive of Berkshire Hathaway earlier this month, Greg Abel faced questions about whether he’s ready to step out of Warren Buffett’s shadow. But the transition reminded some investors of another executive—Abel’s former boss—who for years was considered most likely to take the reins at one of the world’s best-known companies.

David Sokol gained Buffett’s confidence as a star executive who grew key businesses at Berkshire and turned others around, while also demonstrating his investing chops. The Omaha native could be a demanding manager, according to some who interacted with him, but he was popular with Berkshire’s board and Buffett, who publicly singled him out for his accomplishments. “He gets more done in a day than probably I get done in a week, and I’m not kidding," Buffett once told Fortune magazine.

Then in a matter of weeks in 2011, Sokol’s prospects disintegrated after a controversy related to his personal stock trades. His departure from the company became acrimonious, with his lawyer later criticizing how he was treated by Berkshire. Sokol, 69 years old, hasn’t had much contact with Berkshire Hathaway and its executives since leaving, according to someone close to the matter.

But he has expressed pride in Abel and his recent appointment atop Berkshire, a friend says. Some Berkshire investors remain mystified by Sokol’s rise and fall. “By all appearances, Sokol was a man of integrity and talent who was poised to replace Buffett," says Darren Pollock, who runs Cheviot Value Management in Los Angeles, a longtime Berkshire shareholder.