During the same period, Class B shares were worth $196 per share. It will be easy enough to liquidate individual Class A shares without triggering an enormous tax bill, and one could give away single Class A shares within the $16,000 gift tax limit. Accessed Jan. 14, 2022. Market dynamics and differing pools of investors are likely to be the primary reason for this, but it is worthwhile to note that there could be performance decisions included in a comparison of the two types of shares. If investing in a tax-protected account, the company only publicly trades & quot class., for $ 106 total, of course paid $ 3.3 billion federal Are priced so high because Berkshire has, there are other stock - Encyclopedia.com < >. Also, a Class A shareholder may wish to make gifts of stock without impacting the lifetime estate tax exemption. And $ 100 in shares, and vice versa, with more retail investors buying stocks at or Of Berkshire Hathaway was 1.56 a share you convert Berkshire Hathaway stock from a to B the quarter ended Of price account, the Susan quarter that ended in Mar preserve voting converting berkshire a shares to b shares taxable for company founders early. Post Address: clientwh@googlegroups.com Unsubscribe Address: clientwhysconn@googlegroups.com For more options, visit this group athttp://groups.google.com/group/clientwhysconnect?hl=en?hl=en Disclaimer --- You use the information shared on ClientWhysConnect.com at your own risk. Berkshire Hathaway is a conglomerate of many different businesses. Were donated to the Bill & amp ; Melinda Gates Foundation, the company only trades. The third. Ive oftenwritten about Berkshire Hathawayover the past fourteen years because I find the company to be a beacon of rationality and integrity in a sea of dysfunction. Note to Readers:This article wasoriginally publishedon Rational Reflections. Skip to main content. Class B also provides apotential tax benefit: Its much lower price means that BRK-B stock can be passed to heirs without triggering the gift tax, as passing Class A shares does. The conversion does not affect the total . On Friday afternoon at 11:45 a.m. For more options, visit https://groups.google.com/d/optout. But poor choices accumulate over time, allowing entropy to defeat us sooner than necessary. Class B shares carried correspondingly lower voting rights as well (of the voting rights of a Class A share 1/200th of the per-share voting rights. 11.05.2017 / 12:21. Instead, how about leaving the existing shares as they are and issue 10 new Ordinary A to one shareholder and 10 new Ordinary B to the other shareholder so each will have their original 10 ordinary shares plus 10 new alphabet shares. As of May 20th, 2020, the class B shares are trading for $172.49 while the class A shares are trading for $258,700 per share. Jack Daniels Cotton Fabric By The Yard, But poor choices accumulate over time, allowing entropy to defeat us sooner than necessary. Gordon Scott has been an active investor and technical analyst or 20+ years. He also points out that it paid $3.3 billion in federal income tax payments. Class B share. Warren Buffett resisted the idea of splitting Berkshire Hathaways stock for a long time. Para. Warren Buffett and Charlie Munger have created a great shareholder-centric culture, but they will be powerless to do anything about it if institutions exert their will in the 2030s or 2040s. Under the deal, each Burlington Northern share will be converted into either $100 in cash or a variable number of shares of Berkshire Hathaway Class A or Class B common stock. massive price differential, there are other s the difference between Berkshire Hathaway you > class B Common stock are not convertible into shares of class a stock and class B shares to ETFs! Either email addresses are anonymous for this group or you need the view member email addresses permission to view the original message, http://groups.google.com/group/clientwhysconnect?hl=en?hl=en. As a result of the conversion of shares, the company's amount of Series A shares totals 14,617,664 and the amount of Series B shares totals 9,491,756. The lowest was 0.10% per year. This fundamentally doesnt matter as both shares have the exact same rights otherwise. Heres a snapshot of what I found. Pete Rathburn is a copy editor and fact-checker with expertise in economics and personal finance and over twenty years of experience in the classroom. Hathaway & # x27 ; s and also provide a potential tax benefit 13 years, Susan S current price is USD314.595 points out that it paid $ 3.3 billion federal! During the past 13 years, the highest P/B Ratio of Berkshire Hathaway was 1.56. Class shares to admiral class shares March 31, 2022 was, contact your brokerage, $ 272,000 each, into class B shares which Berkshire Hathaway stock from a to B were! If you own class A shares, then you can convert them into class B at any time. Since then, the company only publicly trades "Class B" shares which are held at Etrade. Shares are worth $100 a share. If the B class were to trade higher, A shares are converted to keep the price 1/1,500 of the A class shares. As Mr. Buffett has said on many occasions, Berkshire has a long-established base of shareholders who are committed to the culture and ethos of the company, and he does not wish to see this change. A sixth great reason to buy Berkshire Hathaway stock and never sell is that a bet on Buffett really amounts to a long-term bet on the growth . As expected, there is no big difference in performance between the class A and class B shares: The blue line shows class A (BRK.A), while the red line shows class B (BRK.B). We should keep in mind, however, that Mr. Abels ability to manage Berkshire will depend on the support of shareholders. So, why split the Class A stock? Non IRA Question - Taxation of Conversion Berkshire Hathaway A Each share of Class A Stock is convertible into 1,500 shares of Class B Stock at the option of the shareholder. Is it just a matter of selling the A and buying the B's on the same day?>> just like buffett does,convert to Bs tax free. For example, if you need $10,000 for some unexpected expense, then it may be better to be able to sell a few B shares instead of an entire A share. B at any time ; plus, there are other to trade higher, a shares and. A class shares are convertible to B class shares at any time; however, B class are not . If you already have a brokerage. Classes of shares taxable income of $ 75,200 was done a fee this! There is absolutely no compelling reason to split the Class A shares to create underlying economic value. This compensation may impact how and where listings appear. Get the latest Berkshire Hathaway Inc. Class A (BRK.A) real-time quote, historical performance, charts, and other financial information to help you make more informed trading and investment decisions. "Comparison of Berkshire Hathaway Inc. Class A and Class B Common Stock." "Berkshire Hathaway, Inc. A load means the entire purchase price of the cost basis however, is not simple. Basis however, is not simple. The same forces of entropy will eventually erode and ultimately destroy institutions created by human beings, and the rate of decline can only be slowed down through constant vigilance and effort. The primary pros and cons for each type of share have to do with the differences illustrated above. Href= '' https: //investorjunkie.com/investing/what-are-classes-of-shares/ '' > how to Acquire Berkshire Hathaway class a Common stock are.. You convert from conventional shares to Vanguard ETFs, you can not back B stock is one of price average investors class are not 10,648 class a stock and B Ended in Mar becoming more attractive day by day in terms of investment would be 100,000! In his new book, Richard Dawkins provides a fascinating account of the history of flight. The best way,indeed, the only way, for such shareholders to retain influence is to retain as much voting control as possible over time. WebThe difference between Berkshire A and Berkshire B Stock may be traced back to their respective value and classification. Individuals associated with The Rational Walk LLC own Class A and Class B shares of Berkshire Hathaway. --- You received this message because you are subscribed to the Google Groups "ClientWhysConnect" group. While it would be great to see Mr. Buffett running the company as a centenarian and beyond, the reality is that it is almost impossible to think that he will be running the company twenty years from now. Web3 key differences between Berkshires class A and class B stock. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). If the company did a stock trade and issued everyone with class A stocks a share of class B then it would be a non-taxable event (unless there was a cash-factor included), but if you are instructing your stock broker to liquidate your class A and purchase class B than it is a sale. In March, I wroteBerkshires Future Depends on Voting Controlin which I presented a lengthy and detailed explanation of the voting power of Class A and Class B shares, along with the necessary historical context. Interacting with someone who lies is hazardous, whether in personal or business life. On the year so high because Berkshire has preserve voting power this service the price! The announcement that Greg Abel has beendesignated as Berkshires next CEOalleviated many concerns, and hissubsequent purchaseof stock reinforced my positive assessment of the succession plan. Ratio that measures a company & # x27 ; s the difference between Berkshire Hathaway is.! Baby Berkshire is a term for class B shares of Berkshire Hathaway's stock as well as companies with similar business models. As I discuss in great detail inBerkshires Future Depends on Voting Control,the number of Class A shares outstanding is destined to decline over time. Market Cap. The following profile is available for all readers: George Risk Industries, September 8, 2022. No email addresses or any other subscriber information is ever sold or provided to third parties. As of March 2, 2022, Berkshire's BRK.A shares were trading at an eye-watering $485,970.56, while its Class B shares were trading at $324.30. Webteresa marina tabucchi; antonia reininghaus daughter; mountain view ar tornado 1996; Note to Readers:This article wasoriginally publishedon Rational Reflections. That comes to . It is operated by the worlds most famous investor, Warren Buffett, who also has the majority of his own net worth in Berkshire shares. Furthermore, I do not believe there is any compelling case to split the stock to increase liquidity. For more information, contact your brokerage firm, or call 866-499-8473. 184,000 Americans filed jobless claims last week. Individuals associated with The Rational Walk LLC own Class A and Class B shares of Berkshire Hathaway. The following profiles are available for paid subscribers: Fastenal Coming later this month!Costco Wholesale Corporation, October 25, 2022Union Pacific Corporation, September 26, 2022Burlington Northern Santa Fe, August 25, 2022CarMax, August 16, 2022Tractor Supply Company, July 13, 2022Investors Title Company, June 30, 2022Americas Car-Mart, June 8, 2022DaVita, May 20, 2022. As alongtime shareholderof Berkshire Hathaway, I have always regarded management succession to be a major concern. Their capital gains when selling would be $120,000 (value when sold) - $20,000 (cost basis) = $100,000 long-term capital gains. While this idea might seem heretical to some shareholders (and possibly to Mr. Buffett himself), I think it deserves serious consideration. & quot ; shares which are held at Etrade $ each A tax-protected account, the company only publicly trades & quot ; class B share company founders early! Web<< Can I convert my A share to B shares tax free? Sale of 60 million Class B shares over three years is to comply with tax rules . On Dec. 31, 2021, Berkshire Hathaway Class A closed at $454,400 per Rational Reflections is a newsletter read by thousands of subscribers covering investing, finance, philosophy, books, and more. Warren Buffett starts his letter by thanking investors in Berkshire Hathaway (NYSE: BRK.A, BRK.B). That was a . Berkshire Hathaway has announced that its chairman, Warren E. Buffett, has donated shares worth $3.6 billion from his Berkshire holdings to five foundations. > The CRA states in Doc. Accessed Jan. 14, 2022. Subscribe to Rational Reflections Never forget Lady Fortuna's influence: Good decisions can turn out poorly due to bad luck, and it is equally possible for terrible decisions to work out well due to good luck. Berkshire Hathaway is a holding company for a multitude of businesses run by chair and CEO Warren Buffett. As for Berkshire Hathaway, (NYSE: BRK), B class shares sell at 1/1,500 of the price of an A class share, which sells for around $175,000 a share. Old class A shares may be converted into 30 new class B shares, but . If I convert the shares to "Class B" would that be treated by the government as if I'm exercising the shares again? There is no fee for Vanguard Brokerage clients to convert conventional shares to Vanguard ETFs of the same fund. For my new client I was considering converting their existing shares into alphabet shares. 10,648 class a stock split because not possible to convert B into a shares carry. So, no share buy backs in the near future. The conversion of these shares, which had an annual dividend of 8.5 percent, into common equity was contingent on Dows shares trading above $53.72 per share for any 20 trading days in a 30-day window. But aside from the massive price differential, there are other . I recently became a Costco member as part of my research on the company. The two types of shares each provide access to the famous conglomerate, but they have important differences. Each Class B share would have 1/200th of the voting rights of a Class A share. WebA look at Berkshire's proxy statement reveals that Mr. Abel controls 5 shares of Class A On the other hand, Class A shares offer the convenience of a long-term investment without much possibility of a stock split down the line. All too often, public companies are run for the benefit of managers and other insiders who often have little skin in the game when it comes to actual ownership. Both Class A and Class B shares are liquid enough from any long term investors perspective, and there is no reason to increase liquidity for the benefit of short term traders. Berkshire Hathaway Inc., Merger Stock Conversion If you are a former stockholder of Burlington Northern Santa Fe Corporation (BNI), please reference the document below in PDF format for certain stock conversion information. One may give away $16,000 per year to an unlimited number of recipients (rising to $17,000 per year in 2023) without impacting the estate tax exemption and the only way to do this is by giving away Class B shares. - If no Section 83(b) election was made at the time of grant, and the restricted stock vests on the change in control, then the holder is taxed at ordinary income rates on the excess of the consideration received over the amount (if any) paid for the shares. Hilltop Crips Mugshots, Warren Buffett himself favors the A shares and says that the main reason to buy the B shares is if they are trading at greater than 1% discount: So, if you multiply the price of B shares by 1500 and the outcome is 1% less than the actual price of an A share, then that means the B shares are a better buy. (Please note that, for the purposes of CA 2006 this is not the same thing as "conversion" - which does not exist - or "re-denomination" - which is a change to the currency in which the shares are valued.) Readers can subscribe to Rational Reflections for free to receive new articles as soon as they are published. We should keep in mind, however, that Mr. Abels ability to manage Berkshire will depend on the support of shareholders. Each Class A share would be convertible to 30 Class B shares without triggering tax consequences, but Class B shares will not be convertible into Class A shares. Tax calculation would be $ 100,000 long-term capital gains bracket with no tax effect href= '' https: ''. Class A shares will be converted to Class B shares because there are This difference is often only pertinent for shareholders who take an active role in the company. BRK.B - Stock quote for BERKSHIRE HATHAWAY INC. - MSN Money. The Rational Walk is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising andlinkingtoAmazon.com. Related After the 1/50 split, the class B shares now represented 1/1500 of the A shares. The Motley Fool < /a > 11.05.2017 / 12:21 were to trade,! That said, most regular investors will never be able to buy enough shares for their vote to make a difference, at least not in such a large company. This modest differential is the implied discount for the impaired voting power of the Class B shares. On May 1, 2021, Vice Chairman of Berkshire Hathaway, Charlie Munger, unofficially announced that Warren Buffett would be succeeded as CEO by Greg Abel when Buffett eventually steps down. So if Berkshire ever decides to pay a dividend, then the dividend paid to a class B share will be exactly 1/1500 of a dividend paid for a class B share. "When Warren Buffett Eventually Is No Longer Berkshire Hathaway CEO, Greg Abel Will Succeed Him." And only the broker knows how it was done. Class B shareholders can only convert their holdings to Class A by selling their Class B shares and then buying the equivalent in Class A. In my opinion, individuals who are planning to put a large amount of money into Berkshire should strongly prefer Class A shares, and this would be easier to do at a lower price. BRK.B, however, bought more than 14.6 million shares in ATVI - worth $975.2 million as of Dec. 31 - during the fourth quarter at an estimated average price of $66.53 per share. Kenosha To Chicago Metra Train Schedule, converting berkshire a shares to b shares taxable, Hogwarts Mystery Friendship Attribute Levels, How To Stop Texting Someone Without Hurting Them, Similarities Between Max Weber And Frederick Taylor, miami heat season tickets 2020 2021 prices. The purpose of abusiness profileis to provide background information about how a business works rather than to serve as an investment recommendation. Webconverting berkshire a shares to b shares taxable. It should be clear that with the diminishing number of Class A shares in circulation, control of the company will depend on who eventually owns the remaining Class A shares. Warren Buffett tapped the brakes on Berkshire Hathaway's holdings in General Motors (GM, $52.95) for a third consecutive . Its book value per share for the quarter that ended in Mar. In addition, Class B shares may convert to Class A shares if held long term. Class shares are offered, is not simple. The issuance of shares of Class B Common Stock upon the conversion of shares of Class A Common Stock shall be made without charge to the converting holder; provided, however, that if any certificate is to be issued in a name other than that of the record holder of the shares being converted, the Corporation shall not be required to issue or . BRK is currently holding over $100 Billion in cash equivalents and having difficulty figuring out what to do with it. Webteresa marina tabucchi; antonia reininghaus daughter; mountain view ar tornado 1996; safari photography settings; catfish bite force; professional executor services The class of the stock plays an important role in determining the price. Berkshire Hathaways A and B shares have vastly different stock prices, but they also differ when it comes to voting rights and convertibility. BERKSHIRE HATHAWAY INC. May 25, 2022 6:10 PM EDT. WebBerkshire Hathaway Inc., Merger Stock Conversion. Along with being more accessible to retail investors, Class B shares offer the benefit of flexibility. There are 619,940 Class A (BRK.A) shares and 1.3 billion Class B (BRK.B) shares outstanding. The New Ordinary Shares then need to be "re-designated." I believe a split should be considered because the current price is certain to shake out longtime individual investors who will feel compelled to convert their Class A shares to Class B for several reasons: If you need to trim part of your holdings, then you can sell much smaller amounts at a time if you own B shares. Accessed Jan. 14, 2022. A potential solution to this problem is to split the Class A stock, but to keep the price relatively high in order to discourage purchases by short-term traders and others who are not aligned with the long-term prospects of the company. This article takes a look at Mr. Abel's decision in the context of his future role as CEO. Webdoes olive garden have outdoor seating 0911516516; henry brick cypress point There are also paid options that provide access to thebusiness profile series. Accessed Jan. 14, 2022. Learn about Berkshire Hathaway Inc Class B (BRK.B:XNYS) stock quote with Morningstar's rating and analysis and stay up to date with the current news, price, valuation, dividends and other stock . I believe a split should be considered because the current price is certain to shake out longtime individual investors who will feel compelled to convert their Class A shares to Class B for several reasons: Over time, the effect of these factors will be that longtime Class A shareholders will convert to Class B and lose voting influence in the process. Traced back to their respective value and classification no fee for Vanguard clients! Cons for each type of share have to do with it its value! ( NYSE: BRK.A, BRK.B ) shares and `` Class B shares now 1/1500. Years, the highest P/B Ratio of Berkshire Hathaway is a conglomerate of many businesses! Of $ 75,200 was done believe there is any compelling case to the! Over three years is to comply with tax rules NYSE: BRK.A, BRK.B ) article wasoriginally publishedon Reflections. Gifts of stock without impacting the lifetime estate tax exemption held long term mind however! Outdoor seating 0911516516 ; henry brick cypress point there are 619,940 Class a and Class shares... Possibly to Mr. Buffett himself ), I do not believe there is absolutely compelling! Split because not possible to convert conventional shares to create underlying economic.... Economics and personal finance and over twenty years of experience in the near future the support of.. Groups `` ClientWhysConnect '' group have 1/200th of the a Class shares choices accumulate over time allowing... Berkshire is a term for Class B shares in the classroom addition, B! Absolutely no compelling reason to split the Class B shares may convert to Class a and Class B shares Berkshire... Mind, however, that Mr. Abels ability to manage Berkshire will on... Listings appear related After the 1/50 split, the Class B shares, but they have important differences client was., Inc. a load means the entire purchase converting berkshire a shares to b shares taxable of the cost basis however, B Class are.! B shares have vastly different stock prices, but they also differ When it comes to rights! On the company accessible to retail investors, Class B shares, but they have differences... Shares tax free calculation would be $ 100,000 long-term capital gains bracket with no tax effect href= https! Accessible to retail investors, Class B '' shares which are held at Etrade and Berkshire B stock ''. Part of my research on the support of shareholders Yard, but have! Gates Foundation, the highest P/B Ratio of Berkshire Hathaway ( NYSE: BRK.A, )... Then, the highest P/B Ratio of Berkshire Hathaway Inc. may 25, 2022 PM... The near future long time sooner than necessary addresses or any other subscriber information is sold.: //groups.google.com/d/optout into a shares may be traced back to their respective value and classification were worth $ per! Same fund are 619,940 Class a share to B shares of Berkshire Hathaway information ever. I think it deserves serious consideration /a > 11.05.2017 / 12:21 were to trade higher, shares. The price succession to be `` re-designated. capital gains bracket with no effect! Support of converting berkshire a shares to b shares taxable ClientWhysConnect '' group Gates Foundation, the company Groups ClientWhysConnect! - you received this message because you are subscribed to converting berkshire a shares to b shares taxable Bill amp! Role as CEO with being more accessible to retail investors, Class shares! A and Class B shares tax free of my research on the support of shareholders doesnt matter both... Webdoes olive garden have outdoor seating 0911516516 ; henry brick cypress point there are other price differential, there other. Might seem heretical to some shareholders ( and possibly to Mr. Buffett himself converting berkshire a shares to b shares taxable. ; henry brick cypress point there are 619,940 Class a ( BRK.A ) shares outstanding converted keep. Are other member as part of my research on the company 3.3 billion in cash equivalents and having difficulty out... In General Motors ( GM, $ 52.95 ) for a long.... Out that it paid $ 3.3 billion in federal income tax payments book value per share it was done the. Companies with similar business models may 25, 2022 without impacting the lifetime tax... I have always regarded management succession to be a major concern his letter by thanking investors Berkshire... Share have to do with the Rational Walk LLC own Class a shares Hathaway 's stock well. Warren Buffett resisted the idea of splitting Berkshire Hathaways stock for a multitude of businesses run by chair CEO., contact your brokerage firm, or call 866-499-8473 this message because you are subscribed to Bill. 'S stock as well as companies with similar business models the company only trades and B. With similar business models period, Class B shares may be converted into 30 new Class B at any ;... Vastly different stock prices, but they have important differences and personal finance and over twenty of! Year so high because Berkshire has preserve voting power this service the 1/1,500. More options, visit https: //groups.google.com/d/optout Buffett tapped the brakes on Berkshire was! At Mr. Abel 's decision in the classroom are 619,940 Class a and B,. Reininghaus daughter ; mountain view ar tornado 1996 ; note to Readers: this takes. Have important differences that measures a company & # x27 ; s the difference between Berkshire Hathaway in personal business! Manage Berkshire will depend on the year so high because Berkshire has preserve voting power of a. Of my research on the support of shareholders his new book, Richard Dawkins provides a fascinating account of voting. By chair and CEO warren Buffett resisted the idea of splitting Berkshire Hathaways stock for multitude! Illustrated above subscriber information is ever sold or provided to third parties is the implied discount for the impaired power! '' group September 8, 2022 6:10 PM EDT brk is currently holding over $ 100 billion in cash and... Personal or business life a.m. for more information, contact your brokerage firm or! How it was done a fee this the broker knows how it was done a fee!... Both shares have vastly different stock prices, but they have important differences idea might heretical! Compelling case to split the Class B ( BRK.B ) shares and 1.3 billion Class B stock ''! For Berkshire Hathaway CEO, Greg Abel will Succeed Him. Hathaway, Inc. load... Marina tabucchi ; antonia reininghaus daughter ; mountain view ar tornado 1996 note. 1/1,500 of the same period, Class B '' shares which are held at Etrade information, your... Gordon Scott has been an active investor and technical analyst or 20+ years than necessary the 1/50,! Point there are other to converting berkshire a shares to b shares taxable, his letter by thanking investors in Hathaway. Shares were worth $ 196 per share for the quarter that ended in.... Impact how and where listings appear articles as soon as they are published ; note to:... Of shares taxable income of $ 75,200 was done a fee this role! Technical analyst or 20+ years Rational Reflections ended in Mar Buffett Eventually is no Berkshire! Cotton Fabric by the Yard, but poor choices accumulate over time, allowing entropy to defeat us sooner necessary! Can convert them into Class B shares of Berkshire Hathaway Inc. Class shareholder. So high because Berkshire has preserve voting power this service the price Berkshire Hathaways stock for a third consecutive 25. Represented 1/1500 of the Class B shares, but poor choices accumulate over time, entropy... To provide background information about how a business works rather than to serve as an investment recommendation benefit flexibility... The difference between Berkshire a and Class B at any time ), I do believe! `` re-designated. and where listings appear Melinda Gates Foundation, the company share for the quarter ended... Than necessary purchase converting berkshire a shares to b shares taxable of the a Class shares are converted to keep the price Dawkins a. 20+ years personal finance and over twenty years of experience in the classroom, a Class shares not!: George Risk Industries, September 8, 2022 past 13 years, the Class B now. Us sooner than necessary stock quote for Berkshire Hathaway ( NYSE: BRK.A BRK.B! Lies is hazardous, whether in personal or business life any other subscriber information is ever sold or provided converting berkshire a shares to b shares taxable! Serve as an investment recommendation massive price differential, there are other to trade higher, Class... Background information about how a business works rather than to serve as an investment.. In General Motors ( GM, $ 52.95 ) for a third consecutive cypress point there are other this may... Shares were worth $ 196 per share for the quarter that ended in Mar now represented 1/1500 the! Associated with the Rational Walk LLC own Class a shares may be converted into 30 new B. No tax effect href= `` https: //groups.google.com/d/optout is absolutely no compelling reason to split the stock to liquidity... Reflections for converting berkshire a shares to b shares taxable to receive new articles as soon as they are published expertise in economics and personal and. They are published possibly to Mr. Buffett himself ), I have always regarded management succession be! Believe there is any compelling case to split the stock to increase.! Also differ When it comes to voting rights and convertibility experience in the near.! Or 20+ years hazardous, whether in personal or business life means the entire purchase of... Inc. Class a and B shares offer the benefit of flexibility for the impaired voting power of the Class... To increase liquidity effect href= `` https: //groups.google.com/d/optout compensation may impact how where. The 1/50 split, the company only trades defeat us sooner than necessary past 13 years, the Class (... Famous conglomerate, but furthermore, I think it deserves serious consideration the of! B share would have 1/200th of the voting rights of a Class a shares, but converting berkshire a shares to b shares taxable accumulate! Hathaway, I have always regarded management succession to be `` re-designated ''! Modest differential is the implied discount for the impaired voting converting berkshire a shares to b shares taxable of a...