What's the difference between buying 1 share of BRKa and buying the equivalent amount of dollars worth of BRKb?

 

I am looking to invest in Warren Buffett. He's a smart guy!

Buffett's memo says it all. The only differences are in voting rights, and convertibility (only allowed from A -> B).

Duane

The only difference is 'b' is one fifth of a share of 'a'.

Thanks for the info. I am planning on averaging in with class B. What would be the best way to buy?

 

Through a discount broker, or is there a more direct way? 

I'm not aware of any direct-purchase plan. Pick your favorite broker, open an account, and start buying.

Duane

Johnny Go Browns,

It is my understanding that you can do automatic investments in BRK.B at either Sharebuilder.com or Foliofn.com.

With either broker you can invest dollar amounts and buy fractional shares.  You can DCA at about $4.00 per transaction.  I'm not sure what additional fees they may charge.

helmut 

At $4.00 a transaction it will take around 1040 transactions to buy one BRK.B at today's price.

The $4.00 is the cost of the trade, not the amount invested.  An example; if you were to DCA at $400 per trade, the transaction would cost you $4.00 or 1%.

helmut 

Do you think now would be a good time to be buying BRK.B stock?

[quote user="theDumberOne"]At $4.00 a transaction it will take around 1040 transactions to buy one BRK.B at today's price.[/quote] Don't you just love it when people live up to their screen name!

Only differences are as follows

 

1) B shares are 1/30th ownership of an A share.  i.e. 30 "B" shares are the equivalent ownership of 1 "A" share 

2) A shares can be converted to B shares at the rate of 1 to 30.  B shares cannot be converted to A shares

3) A B share has 1/200th of an A shares voting rights.

 
4) In the market the two issues are priced independently but if you multiply the B share price by 30 you will equal the approximate trading price of one A share.

 

 

[quote user="buki05"]

 
4) In the market the two issues are priced independently but if you multiply the B share price by 30 you will equal the approximate trading price of one A share.

 

[/quote]

And if not, do what Buffett does when he gets bored, arbitrage. 

I think I missed out on a great opportunity to buy Berkshire B share on April 24th at $4,225.  Today it is $4,460.  Kind of makes me feel sick inside.

Loisp,

My Father use to tell me, "You will run out of money long before you run out of good deals."

helmut 

Sir; Perhaps to cut cost on buying "B" shares you might wish to accumulate enough money to buy a few before you place the trade.

Over the long time this has been a great stock.  But be aware during the late 1990's he made apologies for not making any investments which he stated he did not understand (Tecnology stock).    He further stated that he apologized for not making any money. 

Go figure...the man is a genius.

Jeannie

PS:  FAIRX hold many shares of Berkshire, perhaps an investment in that fund would get you the desired exposure to Berkshire but at a lower entry point. 

Straight from the horse's mouth.

Today it's down to $4,179.  Lowest for the year.  Maybe I didn't miss out after all.  And yes, FAIRX is on my list of purchases.  It's a great fund.  I would love to be able to go to Warren's annual meeting next year.  Do you have to own his stock direct or can you own the stock in a mutual fund and still go?  I'm only 100 miles away from Omaha.  I think I would buy the stock just so I can go to the meeting and it is a great stock, otherwise I wouldn't even consider it.  I'd love for Warren to manage my money.  Not too many managers any better.  He, he.

Loisp

Lucky for you you "missed" that opportunity... bought 3 shares (BRK/B) today @ $4,100 ea. Regarding broker to use:- i use optionsXpress. I do not have any experience of any other broker but I have to say that i find them excellent.

$14.95 per trade and an excellent account function regarding dividends and an excellent helpdesk (live help). Also in 3 months of trading I never have had experience of the site being "down". Perevious to choosing a broker I heard of many who had experience of online trading sites going down. In addition I have pre market (1hr) and aftermarket (1.5hrs) trading.

 NC180570Ireland

"The only difference is 'b' is one fifth of a share of 'a'."

 1/5 huh?  Haha then gee wiz the B shares are trading at an 80% discount.

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