Why berkshire hathaway?

Question

I hear people on Money or FI podcasts will sometimes purchse a single share of this stock. I think it's to gain access to their annual meeting. Why are people doing this? What is the draw to include a single share of this? Is it a vacation destination or something?

Corey Hawkinson · Answer

@Hugh Carnaha At that price per share ($325,000), even the people that can buy the stock can only buy 1 share. Even if I wanted to I could not buy a share. But I would assume the price is the main reason someone would only buy 1 share instead of a higher amount of shares which is typical for every other stock.

Scott Jensen · Answer

@Hugh Carnaha Warren Buffet is a legend. The only single stock I own is in Berkshire. I haven't been to a shareholder meeting yet, but I sure hope I can make it there sometime while Buffett and Munger are still running it.  Nice thing about Berkshire is it is pretty diversified for an individual stock. Also, they have a lot more freedom to manage a company they buy. A mutual fund or ETF doesn't have the same sway.

Scott Jensen · Answer

@Hugh Carnaha Oh, don't get me wrong. I do NOT own the A share of Berkshire ($315,000) I own some of the B shares ($210).

Usually when a share price hits a certain level the company will do a stock split, in which they increase the number of shares and decrease the value of each share. This just makes it easier to trade. For example, in a 2 for 1 stock split they would double the amount of shares available and the value of each share would be half of what it was.

@Bill Brandt Yes, it is becoming more common to be able to buy fractional shares.

Warren Buffet is quite a character and I believe the only reason he has never done a stock split for the A Shares of Berkshire Hathaway is because he likes it that high.  The theory is that the huge number, which has happened over a LONG period of time, emphasizes his LONG term approach to investing.

BRK A Shares - https://finance.yahoo.com/quote/BRK-A?p=BRK-ABRK B Shares - https://finance.yahoo.com/quote/BRK-B?p=BRK-B

Hugh Carnaha · Answer

WOW!!!! That's crazy! I didn't know socks could have prices that high!

Bill B. · Answer

They have a cheaper share class at 1/10th? The price. And many financial institutions will sell you partial shares anyway.

Hugh Carnaha · Answer

@Scott Jensen

That makes sense! Trying to get in and see/talk to Warren Buffet and have a diversified portfolio.

Thanks for the input!

Why berkshire hathaway?

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