Thanks to Berkshire Hathaway’s acquisition of Burlington Northern Santa Fe (a US rail road company), Warren Buffet has approved a stock split of Berkshire’s class-B share. 1 class B share (currently worth $3339) will be split into 50 parts, allowing very small holdings of the company for the first time in many, many years. You will now be able to have a part of Berkshire Hathaway for as little as $67! This is fantastic news for the smaller investor.
I also think this is good news for all Berkshire Hathaway shareholders … nearly anyone that saves regularly will be able to pick up some stock each month/quarter/year if they want to. I know if I was still in the UK I’d be buying some to put in an ISA (tax efficient savings structure) each year. From now on the retail investor will have a greater say in valuing Berkshire Hathaway and I find that reassuring.
The vote on the stock split is happening today, and I don’t think anyone expects it not to be approved when the shareholders vote. If you believe in the USA, buying some BRK.B is a no-brainer!