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  • Vox Rationalis: 
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  This will improve liquidity and may provide a (very) modest boost to the stock, as the current share price (~$3300 each) is an unwarranted barrier to trading.

  Nov 03 08:37 AM | Link | Reply
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  • Tack: 
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  I would guess that this unprecedented split in BRK.B shares could see a material boost in share demand, as many investors who would not or could not have considered a $3300 entry price will find $66 irresistible. I would not be at all surprised to see BRK.B prices rise swiftly after the split.
  
  
  On Nov 03 08:37 AM Vox Rationalis wrote:
  
  > This will improve liquidity and may provide a (very) modest boost
  > to the stock, as the current share price (~$3300 each) is an unwarranted
  > barrier to trading.

  Nov 03 08:57 AM | Link | Reply
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  • Ricard: 
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  You need to remember that BRKB itself is derived from BRKA. If BRKB moves, BRKA will have to move in lock step. Furthermore, BRKA will always command a premium.
  
  This is a non-event.

  Nov 03 09:23 AM | Link | Reply
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  • Vox Rationalis: 
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  Ricard is mostly correct; if the B share price were to advance due to improved liquidity and become more valuable than 1/1500th of an A share, one should expect A share conversion and arbitrage to push the shares back to square. This does not mean it won't happen, but rather that the A shares will provide meaningful resistance.
  
  I think the historical premium of the A shares has more to do with poor liquidity than anything else. The increased voting rights are worth very little, considering the dominant position of Buffett and Munger.

  Nov 03 10:35 AM | Link | Reply
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  • anthony win...: 
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  • Streetgeniusofwallstreet.com
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  Nov 27 09:23 PM | Link | Reply