Hope everyone appreciates the alliteration – coming up with clever titles is probably the funnest part about writing posts!
Tomorrow marks an exciting day for the average investor…. or does it?
Warren Buffett has long been referred to as the “Oracle from Omaha” and Berkshire Hathaway has been the “golden egg” investment (BRK-A), being one of the most prestigious, and expensive, stocks traded on the NYSE.
It’s funny to think how much you’d have if you only owned 10 of the Class A shares. Closing at $104,200 – that’s NO small sum. Part of why the shares never paid a dividend or split was that Buffett believed in retaining the true value of the stock (see bullet #10).
The “lesser” shares (BRK-B), closing today at $3,476, were originally offered in 1996 to create a more affordable option, and also a way to pass shares to heirs – now THAT’S a cool phrase.
Even though that’s a stark difference, plenty of average investors were still priced out of this investment. Well, not anymore….
Tomorrow morning the B-class shares are splitting 50:1 and should be opening around $69.50/share. What do the readers think? Is this a “best buy” or “bogus bet”. Here’s what I’ve seen as the pros and cons.