{INVESTING}...Warren Buffett's Berkshire Hathaway B stock... (1 Viewer)

[eoMMan]

That will put it's price under $70 and would be a very nice play.

By KEVIN KINGSBURY

Berkshire Hathaway Inc. will hold a shareholder meeting on Jan. 20 on its proposal to undertake a 50-to-1 split of its Class B shares as part of its acquisition of Burlington Northern Sante Fe Corp.

The railroad is already 23% owned by Berkshire, which last month agreed to pay $26 billion in cash and stock for the remaining stake. As part of the deal, Berkshire announced plans for the 50-1 split of the Class B shares, which ended trading on Friday at $3,320.

The vote date was disclosed in a filing of preliminary proxy materials Friday with the Securities and Exchange Commission.

In addition to voting on the stock split, which would be the first in the company's history, Berkshire holders need to approve an increase in the amount of stock that the conglomerate can issue. The current maximum is 57.7 million shares; Berkshire is proposing an increase to 3.23 billion.

Shareholders of record as of Nov. 30 will be eligible to vote. There are 1.1 million Class A shares and 14.9 million Class B shares; the B shares have 0.5% of the voting power of the A shares. Warren Buffett owns one-third of the A shares and 10% of the B shares. Per-share voting power of the Bs would be cut to one-tenthousandth that of the As after the stock split.

http://online.wsj.com/article/SB1000142405...1948503664.html

 

[Tecumseh]

That will put it's price under $70 and would be a very nice play.

By KEVIN KINGSBURY

Berkshire Hathaway Inc. will hold a shareholder meeting on Jan. 20 on its proposal to undertake a 50-to-1 split of its Class B shares as part of its acquisition of Burlington Northern Sante Fe Corp.

The railroad is already 23% owned by Berkshire, which last month agreed to pay $26 billion in cash and stock for the remaining stake. As part of the deal, Berkshire announced plans for the 50-1 split of the Class B shares, which ended trading on Friday at $3,320.

The vote date was disclosed in a filing of preliminary proxy materials Friday with the Securities and Exchange Commission.

In addition to voting on the stock split, which would be the first in the company's history, Berkshire holders need to approve an increase in the amount of stock that the conglomerate can issue. The current maximum is 57.7 million shares; Berkshire is proposing an increase to 3.23 billion.

Shareholders of record as of Nov. 30 will be eligible to vote. There are 1.1 million Class A shares and 14.9 million Class B shares; the B shares have 0.5% of the voting power of the A shares. Warren Buffett owns one-third of the A shares and 10% of the B shares. Per-share voting power of the Bs would be cut to one-tenthousandth that of the As after the stock split.

http://online.wsj.com/article/SB1000142405...1948503664.html

I don't know a thing about the market, but that seems like a massive dilution.

 

[eoMMan]

Currently around $128/share.....

 

[culdeus]

you mean the class A share

 

[Dentist]

Currently around $128/share.....

has it done better or worse than the S&P 500 over the same stretch

 

[eoMMan]

you mean the class A share

No, the B.

http://finance.yahoo.com/q?s=brk-b

 

[culdeus]

you mean the class A share

No, the B.

http://finance.yahoo.com/q?s=brk-b

The railroad is already 23% owned by Berkshire, which last month agreed to pay $26 billion in cash and stock for the remaining stake. As part of the deal, Berkshire announced plans for the 50-1 split of the Class B shares, which ended trading on Friday at $3,320.

 

[eoMMan]

Currently around $128/share.....

has it done better or worse than the S&P 500 over the same stretch

Good question.

So, at $128 today, that's an 83% increase over it's initial $70 price.

The S&P 500 on Jan. 5 was $1,136 and is now $1,929. That's an increase of 70%.

So, yeah, it is beating the S&P 500.....

 

[eoMMan]

you mean the class A share

No, the B.

http://finance.yahoo.com/q?s=brk-b

The railroad is already 23% owned by Berkshire, which last month agreed to pay $26 billion in cash and stock for the remaining stake. As part of the deal, Berkshire announced plans for the 50-1 split of the Class B shares, which ended trading on Friday at $3,320.

They trade as two separate shares now. You can buy an A or a B. My OP went with the assumption that the split would go through, which it did.

 

[Dentist]

Currently around $128/share.....

has it done better or worse than the S&P 500 over the same stretch

Good question.

So, at $128 today, that's an 83% increase over it's initial $70 price.

The S&P 500 on Jan. 5 was $1,136 and is now $1,929. That's an increase of 70%.

So, yeah, it is beating the S&P 500.....

yup, just looked it up, you're right.

However, the S&P 500 would have paid a dividend and Brk. B does not and I wonder if you factored in re-invested dividends if he would still be up.

I'm guessing it would either be extremely close or BRK.B would be behind.

 

[fantasycurse42]

What about the one that is about $200k a share?

 

[Sand]

What about the one that is about $200k a share?

Same thing - just that the A share is worth 1500 B shares, if memory serves.

An A share also gets you voting rights and an invitation to BRK's annual shareholder meeting (which is supposed to be awesome).