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Berkshire Hathaway Inc. Message Board

  • nobleonetoo Jan 25, 2013 12:48 AM Flag

    So close to the BRK'b century mark! $100

    Will it be allowed to climb or will the Master Warren allow a 2-1 split.
    I can wait! Can you?

    Sentiment: Hold

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    • It will climb north of 100, and there won't be a stock split. I am trying to buy as many shares as I can before it reaches 100... I am hoping that Mr. Market will avoid bidding it up for a while (perhaps 100 will be a psychological resistance).


      Sentiment: Strong Sell

    • if he makes a large buy like the railroad deal and he wants small stock holders to get something out of it.

      • 1 Reply to cbowneoil
      • Even if he makes another acquisition, I do not think there will be a stock split. When the BNSF rail road was purchased, each B share sold for about 3000-3500 dollars... splitting it brought it to the low 60s. There were a lot of shareholders in BNSF that did not have 3500 dollars worth of stock, and there would not have been a way to give them shares. He wanted them to have the same option of taking shares instead of cash.

        The three reasons why I don't think there would be a stock split, even if there is a big acquisition:

        1. The current price of BRK.b (97 dollars) would allow most small investors to be compensated in stock if that was an option being offered to larger investors.

        2. With 47ish billion dollars available (and a large portfolio), they can pay cash for most acquisitions that would present themselves (even keeping 20 billion in reservers)

        3. Warren Buffett HATES issuing new stock (he says it is about as pleasant as preparing for a colonoscopy)

        I think that his preference right now would be to getting back shares (by having the share price fall and allowing for more shares to be repurchased)


        Sentiment: Strong Buy

144.79+2.67(+1.88%)Jun 30 4:03 PMEDT