Author Topic: BRK-B 50-for-1 share split  (Read 8316 times)

arbitragr

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BRK-B 50-for-1 share split
« on: January 15, 2010, 03:03:04 PM »
Anyone know the logistics and procedural events that will happen due to the split? i.e. what happens between you and your broker and whether there are implications for the stock price given its increased liquidity?

"worry top down, invest bottom up ..."


scorpioncapital

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Re: BRK-B 50-for-1 share split
« Reply #1 on: January 18, 2010, 10:03:46 AM »
". It will also let the "little guy" buy a 100 share lot because the stock is now "cheap". "

If the little guy could buy 100 shares after the split he could buy 2 shares before it. It must be for those who can't even buy 100 shares post-split.

goldfinger

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Re: BRK-B 50-for-1 share split
« Reply #2 on: January 18, 2010, 11:31:25 AM »
That's exactly right. Most small "investors" I talk to you think that way.
I have been asked so many times:
"What is the price of a berkshire share" and when I respond they say "It is expensive!", then I explain "It all depends on what you get for that price, right?" then they look at me like there is something I don't understand. Then they talk about some stocks that are cheap because they are below 10 bucks a piece. Yeah, that's what is really happening out there!

omagh

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Re: BRK-B 50-for-1 share split
« Reply #3 on: January 18, 2010, 11:34:36 AM »
scorpion,

That's the greater fool thinking by the "little guy".  

BRK will ultimately rise or fall based on Berkshire's ability to increase intrinsic value.  A reasonable set of assumptions using the 2-column valuation method shows BRK is slightly undervalued at present operating earnings levels.  With a modest recovery in the economy, that undervaluation will become more pronounced.

-O
". It will also let the "little guy" buy a 100 share lot because the stock is now "cheap". "

If the little guy could buy 100 shares after the split he could buy 2 shares before it. It must be for those who can't even buy 100 shares post-split.

value-is-what-you-get

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Re: BRK-B 50-for-1 share split
« Reply #4 on: January 18, 2010, 01:06:55 PM »
scorpion,

That's the greater fool thinking by the "little guy".  

= voting machine = short term

BRK will ultimately rise or fall based on Berkshire's ability to increase intrinsic value.

= weighing machine = long term

swf83

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Re: BRK-B 50-for-1 share split
« Reply #5 on: January 18, 2010, 01:25:14 PM »
Wouldn't buying BRKB prior to the split be a good move because all the "smaller" investors will go on a feeding frenzy with a $60 something dollar Berkshire stock?

goldfinger

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Re: BRK-B 50-for-1 share split
« Reply #6 on: January 18, 2010, 01:35:57 PM »
Since BRK is undervalued you are not taking a lot of risks as long as you are prepared to hold it if things don't go your way.
My personal speculation is that:
- operating earnings are improving and book value will be at 90K or more soon per A share.
- global recovery is higher than previously expected.
- B shares splitting + BNI acquisition will be complete soon.
- people are now looking more at large caps as they are undervalued relatively speaking.
Those may be short term catalysts for a BRK run up closer to IV soon. We will see...

omagh

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Re: BRK-B 50-for-1 share split
« Reply #7 on: January 18, 2010, 01:40:04 PM »
What is that? Subtitles?  I thought I was keeping the messages simple...  ;D

-O
scorpion,

That's the greater fool thinking by the "little guy".  

= voting machine = short term

BRK will ultimately rise or fall based on Berkshire's ability to increase intrinsic value.

= weighing machine = long term

hyten1

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Re: BRK-B 50-for-1 share split
« Reply #8 on: January 19, 2010, 07:12:38 AM »
man what is this going to do to the annual meeting :)

man the number of people at the meeting is just too many

shalab

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Re: BRK-B 50-for-1 share split
« Reply #9 on: January 19, 2010, 07:47:21 AM »
which is just as well. the little guy who couldn't buy a 'B' share won't go to the annual meeting. if they go, there will be more sales of berkshire merchandise.