Author Topic: What would you do.....  (Read 5761 times)

cubsfan

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Re: What would you do.....
« Reply #20 on: December 12, 2017, 09:42:24 AM »

Awesome Q to ask & very pertinent in light of succession speculation.

Who's gonna nut up & get in line to ask?

I'd be tempted to show up this year just to watch that (especially if it was someone from COBF!)


DD - we're voting you in on that one. Get up at 2:00am, get in line, and you'll be first guy at the mike
        I'm sleeping in!



DooDiligence

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Re: What would you do.....
« Reply #21 on: December 12, 2017, 10:23:29 AM »

Awesome Q to ask & very pertinent in light of succession speculation.

Who's gonna nut up & get in line to ask?

I'd be tempted to show up this year just to watch that (especially if it was someone from COBF!)


DD - we're voting you in on that one. Get up at 2:00am, get in line, and you'll be first guy at the mike
        I'm sleeping in!

Can't, Munger scares me & I love a good Porterhouse but not in that way.



Still might go though since I'm an owner now!
« Last Edit: December 12, 2017, 10:30:13 AM by DooDiligence »
abc 2.6 | abev 1.6 | aapl 0.9 | bbh 3.3 | brk.b 10.9 | chtr 4.2 | cvs 5.7 | dva 5.5 | dis 4.1 | ew 2.1 | gpc 2.8 | mo 6.1 | nvo 5.1 | sftby 2.3 | vde 4.2

(%'s held @ cost, PV allos are slightly 2 significantly higher. includes a slowly dwindling cash pile.)

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rkbabang

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Re: What would you do.....
« Reply #22 on: December 12, 2017, 10:44:10 AM »
Can I get an option "I don't care"?

As I have said before, I am selling my BRK position the moment Warren is out (assuming stock does not crater to unreasonable discount). He is not replaceable. Splitting or not splitting won't make much difference likely. Although it's possible that holders after Warren's exit will still get OKish return.


I don't think you are the only one.  I expect the stock to tank on that day and I expect to back up the truck if it does.

rb

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Re: What would you do.....
« Reply #23 on: December 12, 2017, 11:38:57 AM »
My truck stands ready as well.

Gregmal

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Re: What would you do.....
« Reply #24 on: December 12, 2017, 11:51:05 AM »
Can I get an option "I don't care"?

As I have said before, I am selling my BRK position the moment Warren is out (assuming stock does not crater to unreasonable discount). He is not replaceable. Splitting or not splitting won't make much difference likely. Although it's possible that holders after Warren's exit will still get OKish return.


I don't think you are the only one.  I expect the stock to tank on that day and I expect to back up the truck if it does.

Warren is irreplaceable. Maybe the effects won't be immediate. Maybe they take a decade or two, but many great and valuable businesses often gradually turn into country clubs once their founding members turn over. It's one of the reasons many rollups do not work.

DooDiligence

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Re: What would you do.....
« Reply #25 on: December 12, 2017, 11:59:00 AM »
Vroom, vroom...
abc 2.6 | abev 1.6 | aapl 0.9 | bbh 3.3 | brk.b 10.9 | chtr 4.2 | cvs 5.7 | dva 5.5 | dis 4.1 | ew 2.1 | gpc 2.8 | mo 6.1 | nvo 5.1 | sftby 2.3 | vde 4.2

(%'s held @ cost, PV allos are slightly 2 significantly higher. includes a slowly dwindling cash pile.)

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thowed

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Re: What would you do.....
« Reply #26 on: December 12, 2017, 12:44:17 PM »
I hope this relates enough to the OP, but this got me thinking about the future of the A shares i.e. the current holders will have had them for quite a long time, and won't be spring chickens themselves.

What happens when they die?  How will their heirs be disposed towards a US$300,000+ share that doesn't produce any income, especially when WEB is gone?

I wonder if Howard etc. have any instructions on doing a split at any point?

p.s. Apologies if this has been discussed previously - I don't read every BRK thread.

Jurgis

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Re: What would you do.....
« Reply #27 on: December 12, 2017, 01:07:43 PM »
I hope this relates enough to the OP, but this got me thinking about the future of the A shares i.e. the current holders will have had them for quite a long time, and won't be spring chickens themselves.

What happens when they die?  How will their heirs be disposed towards a US$300,000+ share that doesn't produce any income, especially when WEB is gone?

I wonder if Howard etc. have any instructions on doing a split at any point?

p.s. Apologies if this has been discussed previously - I don't read every BRK thread.

You can always convert A to B. And without taxable event I think, but I am not an accountant/etc.
"Before you can be rich, you must be poor." - Nef Anyo

StubbleJumper

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Re: What would you do.....
« Reply #28 on: December 12, 2017, 02:09:01 PM »
I hope this relates enough to the OP, but this got me thinking about the future of the A shares i.e. the current holders will have had them for quite a long time, and won't be spring chickens themselves.

What happens when they die?  How will their heirs be disposed towards a US$300,000+ share that doesn't produce any income, especially when WEB is gone?

I wonder if Howard etc. have any instructions on doing a split at any point?

p.s. Apologies if this has been discussed previously - I don't read every BRK thread.

You can always convert A to B. And without taxable event I think, but I am not an accountant/etc.


Yes, the A shares can definitely be converted to B shares, which would enable holders to more easily sell a portion of their holdings rather than being obligated to sell in tranches of $300k.

But, the bigger issue in my mind is that the ownership becomes less concentrated when the original geezers finally take that long dirt nap.  An owner with $100m in shares splits it amongst his four kids at $25m each.  Then, what often happens is that the first generation that actually works to accumulate a fortune tends to be quite thrifty and rarely sells, but the second generation that inherits a fortune has a tendency to fritter away the money.  Those major owners (some of whom are on the board of directors) may not be a source of stability if the second generation partially fritters away their inheritance.

At this stage, Warren's life has gone into extra innings, and good for him.  But, I'd love to see a $20B annual dividend initiated in an effort to limit the annual cashflow that the next management teams can mismanage.


SJ

rb

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Re: What would you do.....
« Reply #29 on: December 12, 2017, 02:17:22 PM »
I hope this relates enough to the OP, but this got me thinking about the future of the A shares i.e. the current holders will have had them for quite a long time, and won't be spring chickens themselves.

What happens when they die?  How will their heirs be disposed towards a US$300,000+ share that doesn't produce any income, especially when WEB is gone?

I wonder if Howard etc. have any instructions on doing a split at any point?

p.s. Apologies if this has been discussed previously - I don't read every BRK thread.
Yes they can convert A to B, effectively engineering their split.

Also if the tax bill passes the estate tax will be repealed. This will eliminate a large pressure to sell shares.

In regards to income it's likely that BRK will introduce a dividend when the cash flows grow large enough. But even without a dividend the holders of shares can borrow against the shares. As long as the margin rates are below BRK returns that would be a smart play.