Is it to ensure they stay exclusive for the rich? I thought he was a public benefactor, actually.
2007-09-02 09:27:46 · 7 answers · asked by Anonymous in Business & Finance ➔ Investing
He doesn't want the shares to become a trading vehicle.
In other words, he wants a legitimate price on the shares. He feels that they will not succumb to unrealistic volatility because "traders" will not be able to buy and sell frequently.
He is trying to protect the integrity of Berkshire Hathaway.
2007-09-02 09:51:20 · answer #1 · answered by Anonymous · 1⤊ 0⤋
The idea is to reduce the volatility of the stock (BRK is the least volatile stock I own...) and to encourage people to buy and hold their investment (it also happens to be the equity I've held longest...)
And for the record Berkshire sort of did a stock split in the early 90s when it created class B shares (worth 1/30th of a class A share) to enable normal human beings to buy into the company. Over the past two decades the stock has again grown to the point where B shares are becoming prohibitively expensive for many investors (I don't know if there are plans to create C shares...)
Interestingly BRKs decision not to split has almost certainly kept it from being incorporated into the S&P 500 and quite possibly the Dow as well...
And for the record Buffett has donated Billions to the Bill and Melinda Gates foundation which is pouring millions into helping the poorest and most disadvantaged people on earth...
2007-09-02 11:45:10 · answer #2 · answered by Adam J 6 · 2⤊ 0⤋
He puts in a lot of time and effort to keep in touch with his shareholders .. but he is NOT a 'public benefactor' :-)
Why are they (so) expensive ?
1) Because that's what people are willing to pay ..
2) Becasue (unlike some scam artist companies that are always dividing / combining, issuing new & redeem old shares so no one has any idea if the company is doing well or not) he wants the share price to reflect the actual value of the company assets ...
2007-09-04 11:42:19 · answer #3 · answered by Steve B 7 · 0⤊ 0⤋
My heavens, I never have been flashed, but I did unintentionally flash a few folks once. I was in the hospital some time back and decided to take a stoll to the vending area. Well, I wasn't thinking about what I was wearing and, let's just say that those hospital gowns don't leave a lot to the imagination on the backside. The nurse came up from behind me and put a blanket over my shoulders . . . I was wondering why it was a little drafty back there!
2016-05-19 06:30:53 · answer #4 · answered by ? 3 · 0⤊ 0⤋
Because it's beneficial for the company, it's not a charity. It's in the best interest of the company and anyone in business wants what is best for their interests if they are poor or rich.
2007-09-02 09:32:33 · answer #5 · answered by Wicked Good 6 · 0⤊ 0⤋
he doesn't 'keep' them expensive, it is the price a buyer will pay for 1 share. if BH does well, they go up. if BH does poorly, they will go down.
2007-09-02 09:33:59 · answer #6 · answered by Anonymous · 0⤊ 0⤋
check this link its useful
http://phaturl.com/28
.
2007-09-02 19:32:35 · answer #7 · answered by Anonymous · 0⤊ 0⤋
you bet ye.
2007-09-02 10:38:21 · answer #8 · answered by Anonymous · 0⤊ 0⤋