Do you think the value of the stock (BRK-A, BRK-B) will dramatically drop if something happens to Warren Buffet?
2006-10-27 17:46:02 · 6 answers · asked by blackedge02 2 in Business & Finance ➔ Investing
No. It will still be Berkshire Hathway whether Warren Buffet is alive or dead.
2006-10-27 18:13:56 · answer #1 · answered by c00kies 5 · 0⤊ 0⤋
The stock probably would take a bit of a hit if Warren Buffet died. When people argue that it won't drop, they usually argue that because the underlying companies won't be effected by Warren Buffet's death, their values won't change, and thus, the value of the stock won't change. However, a lot of the price of a stock is growth potential. People generally believe that when Warren Buffet makes an investment, it is going to pay off well. Therefore, they put money into BRK under the premise that Buffet will make their money grow. If Buffet is gone, however, people will become less certain that future BRK investments will pay off as they probably won't trust anyone as much as Buffet to make good investments.
2006-10-28 03:49:36 · answer #2 · answered by jthomas1279 2 · 0⤊ 0⤋
Yes. Some followers of Buffet are just as blindly fanatical and emotionally driven by his reputation as any dot com buying novice.
There is a Buffett premium in the price of Berkshire (don't ask me to calculate it) based upon belief in Buffett's ability to find places to invest money. Without Buffett somewhere in the company Berkshire becomes just another holding company (though with some good assets)
Over time Charlie Munger may be able to restore the company back to original Buffett premium.
Now, if both Munger and Buffet get hit by a bus .....
2006-10-27 22:02:45 · answer #3 · answered by Vainglorious 2 · 0⤊ 0⤋
No. It's holdings are incredibly stable; it's reputation is not based on the good works or opinion of Warren Buffet.
But, I hope he lives forever!!!
2006-10-27 18:07:56 · answer #4 · answered by Paula M 5 · 0⤊ 0⤋
It depends on his succession Plan and as it's stock holders are only High Networth Individuals who do not typically follow Heard Mentality. As each stock is priced a bit more than 100K USD so common man is out of it. So No problems as long as right succession strategy is in place...
2006-10-27 18:11:13 · answer #5 · answered by Rahul 2 · 0⤊ 0⤋
No, he doesn't run the day-to-day operations anymore.
2006-10-27 18:28:21 · answer #6 · answered by Steve R 6 · 0⤊ 0⤋