Investors should take advantage of the widening spread between Berkshire’s Class A and Class B stock

  • Berkshire Hathaway’s Class A stock is trading at a wider-than-usual 2.5% premium to the Class B stock
  • Investors should consider buying the Class B shares
  • The spread between the two classes of stock is the widest since April
  • Warren Buffett suggests favoring the B shares when the A-share premium is above 1%

Berkshire Hathaway’s Class A stock is currently trading at a wider-than-usual 2.5% premium to the company’s Class B stock. This suggests that investors who are partial to Berkshire should consider buying the Class B shares. The spread between the two classes of stock is the widest it has been since April, reaching over $9 per share. Warren Buffett, CEO of Berkshire Hathaway, has advised investors to favor the B shares when the A-share premium is above 1%. The Class B shares are more liquid and widely owned due to their lower share price and inclusion in the S&P 500 index. It is important to note that the B shares cannot trade at a premium to the A shares, as arbitragers would buy the A shares and convert them to the Bs. Overall, investors should take advantage of the current spread between Berkshire’s Class A and Class B stock, as it presents a relative bargain for those looking to invest in the company.

Public Companies: Berkshire Hathaway (BRK.A)
Private Companies:
Key People: Warren Buffett (CEO of Berkshire Hathaway)

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Factuality Level: 8
Justification: The article provides factual information about the trading prices and premiums of Berkshire Hathaway’s Class A and Class B stocks. It includes quotes from Warren Buffett and explains the differences between the two classes of stock. The information is presented objectively and does not contain any obvious bias or misleading information.

Noise Level: 3
Justification: The article provides a straightforward explanation of the price premium between Berkshire Hathaway’s Class A and Class B stocks. It includes relevant information about the history and characteristics of the two classes of stock. However, there is some repetitive information and unnecessary details that could be condensed.

Financial Relevance: Yes
Financial Markets Impacted: Berkshire Hathaway

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the trading activity and premium spread between Berkshire Hathaway’s Class A and Class B stocks. While there is no mention of an extreme event or its impact, the information provided is relevant to financial markets and companies.

Reported publicly: www.marketwatch.com