Author Topic: BRK-B 50-for-1 share split  (Read 8315 times)

djcattlco

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Re: BRK-B 50-for-1 share split
« Reply #10 on: January 19, 2010, 08:52:44 AM »
I believe that 10% of annual Neb Furniture sales occur at annual meeting....BRK has got to be the only company whose annual meeting pays for itself!  Anybody know about other subs meeting sales?


scorpioncapital

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Re: BRK-B 50-for-1 share split
« Reply #11 on: January 19, 2010, 09:15:52 AM »
This all seems part of a logical progression over many years

1. Create the B shares.
2. Split the B shares.
3. Buy back shares and/or pay a dividend.


goldfinger

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Re: BRK-B 50-for-1 share split
« Reply #12 on: January 19, 2010, 04:16:01 PM »
From a CNBC article:



goldfinger

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Re: BRK-B 50-for-1 share split
« Reply #13 on: January 19, 2010, 04:16:57 PM »
Sorry the attachement didn't work:
Here is the text:

What do you think? We want to know!

   Are you more likely to buy shares of Berkshire Hathaway now that the stock is more accessibly priced?   
      Yes, until now it was too expensive for me.   
      No, it doesn't change a thing.
   
Vote to see results   
   Are you more likely to buy shares of Berkshire Hathaway now that the stock is more accessibly priced?   * 490 responses   
   Yes, until now it was too expensive for me.
71%
   No, it doesn't change a thing.
29%
Not a Scientific Survey. Results may not total 100% due to rounding.

arbitragr

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Re: BRK-B 50-for-1 share split
« Reply #14 on: January 20, 2010, 12:19:07 PM »
Split is having some effect ... BRK-B jumped up 4% today, when everything else was down.
"worry top down, invest bottom up ..."

Ballinvarosig Investors

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Re: BRK-B 50-for-1 share split
« Reply #15 on: January 20, 2010, 12:27:54 PM »
Split is having some effect ... BRK-B jumped up 4% today, when everything else was down.

It's interesting, the price is probably going up in expectation that investors are going to pile into the B-shares once they're split. I think it might scupper a few plans if the newly split B-shares actually went down on the first few days of trading :D

Good luck to anyone who thinks they'll make money out of this.

Alekbaylee

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Re: BRK-B 50-for-1 share split
« Reply #16 on: January 20, 2010, 12:32:46 PM »
It may also start a sell off of other "investor-wise" securities like MKL, LUK and FFH, toward the buying of new baby-BRK.B (post split).

StubbleJumper

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Re: BRK-B 50-for-1 share split
« Reply #17 on: January 20, 2010, 01:28:42 PM »
Split is having some effect ... BRK-B jumped up 4% today, when everything else was down.

It's interesting, the price is probably going up in expectation that investors are going to pile into the B-shares once they're split. I think it might scupper a few plans if the newly split B-shares actually went down on the first few days of trading :D

Good luck to anyone who thinks they'll make money out of this.


I recently added a small amount to my BRK holding.  In some respects it is a "heads you win, tails you win" situation.  If there is a short-term price spike caused by the split, that's great because you can sell for a nice profit.  Otherwise, you get to hold a wonderful under-priced security in a company managed by the best capital allocator on the planet.

Seems like a sweet spot to me...

SJ

benhacker

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Re: BRK-B 50-for-1 share split
« Reply #18 on: January 20, 2010, 02:55:51 PM »
I've been buying below $3300 and was a buyer on Friday and Tuesday.

The stock is cheap... the split is a catalyst, maybe nothing happens, or maybe it starts in motion a revaluation process.  Either way, BRK is cheap.  People buying today for the split (or because Buffett said the stock was cheap, or because he said that the Swiss Re deal was $50B worth of premium, etc) may or may not be stupid for the reason they are buying, but the bottom line for me is that the stock is cheap.

I own another stock that announced a 11:10 split a few months back.  We all talked about how stupid the split was and how management wasn't fooling anyone... and then the stock split... and the price didn't move.  The fact is that splits are nothing economic, but maybe, they can be a catalyst for cheap stocks.

I'm not saying they are, but in the case of BRK, all I know is it is cheap.  If the stock is at $3250, or $65... I'll buy some.  but I wouldn't be the least bit surprised to see it at $80 in a week.

Markets are crazy.

Ben
Ben Hacker
Beaverton, Oregon - USA

arbitragr

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Re: BRK-B 50-for-1 share split
« Reply #19 on: January 20, 2010, 03:34:21 PM »
Check out BRK-B price action compared to the major indices.

Something fishy is going on.  :D
"worry top down, invest bottom up ..."