Every single share goes for about 108 grand
Clearly Warren Buffett just wants rich people to invest in, but Why?
2007-02-12 12:10:35 · 5 answers · asked by Carlos G 3 in Business & Finance ➔ Investing
By not splitting the stock, Warren Buffet keeps the psychological aspect out of the pictures, and attracts more longer term investors as opposed to traders. This leads to a more stable price, which they believe is better for investors.
The good news is that you can still buy his "B Class" shares, which cost $3,624, but the shares perform the same.
However, remember that the same risks apply as for any stocks, which means that if you only have money for a few shares, you are risking it all into one basket and could loose more. Diversify.
Somebody with less money should look into mutual funds: nobody should put all their money in the same stocks. Many mutual funds contain BRK shares, but contain a better portfolio better tuned to current market conditions, which may outperform BRK.
2007-02-12 14:42:24 · answer #1 · answered by The Goal Interceptor 2 · 1⤊ 0⤋
Berkshire Hathaway stock's value is reflected in the share price. Why mess with success? One can purchase "B" shares if one cannot afford to buy a regular share. I own some "B" shares and hope one day to be able to convert them. I also purchased stock directlyfrom some of the companies that are held within BH. They've all done very well.
2007-02-12 12:20:33 · answer #2 · answered by Santal 3 · 0⤊ 0⤋
Mister Buffett wants the share price to accurately reflect the value of the shares in the company. He does not believe that stock splits accurately reflect company value and has stated this many times.
2007-02-12 12:15:32 · answer #3 · answered by Bostonian In MO 7 · 1⤊ 0⤋
Control of his company. Low fluctuation in stock price. You have to realize Berkshire owns a huge part of several major companies. Consistency in this manner keeps people employed. Buffett looks heavily at the intrinsic value of his company and wants to keep it nice and solid.
2007-02-12 13:28:13 · answer #4 · answered by renzbenton 3 · 0⤊ 0⤋
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2016-12-17 15:11:53 · answer #5 · answered by zissler 3 · 0⤊ 0⤋