Actually, Berkshire has outperformed the S&P/SPY. Stock splits don't change the value of a company. Berkshire Hathaway Class A shares are the most expensive shares traded on U.S. markets. Plus Buffett can handle the money better than the average shareholder. Legendary value investor Warren Buffett has never done a stock split of his investment company, Berkshire Hathaway's Class A shares, reasoning that to do so … New comments cannot be posted and votes cannot be cast. I'm a fan. It will likely dip as a knee jerk reaction. Stock B might indeed be more expensive than stock A if, say, its P/E ratio was 50 while stock A’s P/E ratio was 5. Known as the Oracle of Omaha, Berkshire Hathaway (ticker: BRK.B, BRK.A) CEO Warren Buffett might be the world's most famous living investor. If Berkshire begins trading near book then buybacks actually become quite palatable and ROIC should improve. When his company buys a stock… Yeah, he lags it since 2018 I guess. It's like owning a financial mutual fund with a bit of tech for growth. Want to know why… BRK.A or … Press J to jump to the feed. It’s not going down (at least not significantly) and it will almost certainly go up steadily. And looking at its stock holdings, Berkshire is doing really well. Almost any post related to stocks is welcome on /r/stocks. Buffett has been anti-tech and extremely conservative and his hindered his already amazing growth. Easy decision. This is a bit more than double the S&P's return, depending on how you deal with inflation. Hoping to buy back in on a dip. It's very diverse, doesn't have a fee like an etf, and has the reward potential of a single stock. I think its solid, own shares and 1/2022 300 calls. Warren Buffett's Berkshire Hathaway returned to profitability in the first quarter of this year after reporting a nearly $50 billion loss during the first quarter of 2020 due to the Covid-19 pandemic. Buffett Has Never Split Berkshire’s Stock. Buffett continued to repurchase shares in 1Q 2021: Repurchased $6.6B in 1Q 2021. Wouldn't an index fund beat them? In 1980, one share of Berkshire Hathaway stock cost less than $300. We use cookies on our websites for a number of purposes, including analytics and performance, functionality and advertising. It fits the bill too. For years, analysts have called for, and investors have clamored for, a stock split. Plus, Warren Buffet as a leader is a plus for many people. Looks like you're using new Reddit on an old browser. It was initially slated to go public at $75 to $85 per share last Wednesday, but interest in the stock was so high that the company wound up issuing shares at $120 on its IPO day. I'm still in the growing wealth stage of my life and need much better returns than Berkshire is likely to offer to meet my goals, so I have no interest in Berkshire at this time. Once I'm near retirement and have a few millions that I just want to safely preserve to live off of for the rest of my life then I'll think about putting some of it in Berkshire stock. Better off taking Warren Buffets own advice and buying the S&P. It's also a top holding in many value funds/ETFs, so you can get exposure to Berkshire that way too. Well, there are two reasons for this. Similar pace to 2020 quarterly average ($24.7B over the year). I understand he has many good managers working for him but will it cause the stock to dip quite a bit or what? So, if you have a very long time horizon, it is worth considering. Buy Berk-B instead of a pure bank/insurance stock? I just parked a bunch of cash in BRK.B. What happens when he dies? Berkshire isn’t an index fund. The only way that I see myself buying before then is if there is a huge dip in the stock after Warren Buffett passes away. If we just put aside the stockholdings, most of Berkshire is actually insurance and reinsurance business, which should really do well in the rising rates environment. But i think thats good! One of my favorite investments! In 1996, Berkshire issued much cheaper Class B shares. Everyone who says this ends up missing on the rallies. The main reason why Berkshire Hathaway Class A stock is priced so high is that the company didn’t decide to split its stock. Buying B shares at prices between $231 and $251. My only quibble is that it doesn't pay a dividend to shareholders but that's not a dealbreaker. Timing it will be impossible and it'll never be enough of a dip or it'll be too much. Switching costs-- when it would become more expensive to stop using a product or it's a big pain, a hassle-- some of the big banks that Berkshire has, has that-- … That’s because dividends are irrelevant and you have to pay taxes on it even if you don’t want the dividend. However, you shouldn’t try to time the market as the old man said. Check out our wiki and Discord! If you have any questions let me know! The link to the Google stock quote is below. I was able to buy the dip last year so I have seen good gains. In this information and fintech age it's becoming surprisingly easier and cheaper to do so. Only changes I see happening besides a small dip followed quickly by a recovery is: Serious question as a millennial... why invest in Berkshire which underperforms the SPY? If you think about it, investing in Berkshire at the right price is one of the best allocations of their cash mountain possible. WHY IS BERKSHIRE HATHAWAY STOCK SO EXPENSIVE - THERE ARE ALWAYS CLASS B SHARES If you don’t have $211,000 sitting around, there’s no need to be sad – you can still be a Berkshire Hathaway shareholder. Don't let him or Charlie fool you though as the exact same can be said for Berkshire Hathaway stock. Does not sound too bad in my opinion. Berkshire is a safe stock, but it is unlikely to beat the market by much if at all so I see Berkshire as a wealth preservation stock more than a wealth growth stock. From 1965 to 2019, the annual performance of Berkshire Hathaway’s stock was more than twice that of the S&P 500 index. Warren Buffett made a few admissions to Berkshire Hathaway Inc. shareholders, including regrets over Apple Inc. stock sales, circumstances surrounding its airline share … I’ve heard elsewhere that Berkshire’s large cash position could possibly be used to purchase back a large amount of shares or pay a special dividend once Buffett and Munger pass. I thought about it, but Warren and Charlie are old and I don't know what will happen if one or both aren't around anymore. So, the correct question to ask is: Why does one share of Berkshire Hathaway stock cost so much? Berkshire is the company to own when the SPY is down or flat. Some people don't like index funds, because you don't want to own Tesla or some other stocks you don't like. Just buy it now and leave it. But historically, it over performs. Don't wait for a dip. It’s like their hedge so when the market drops 30% they’ll be happy that Berkshire only dropped 25%. Don't hesitate to tell us about a ticker we should know about, but read the sidebar rules before you post. Succession and ‘what if’ around BRK has been around a decade plus, and places like CNBC and yahoo finance love to write pointless articles on succession, the huge cash pile, etc and just republish the same article every few months knowing it will get clicks. The dip that happens next month will be the price you could've just paid today. The reason the A shares are so expensive is that Warren doesn't really believe in stock splits and also does a good job of keeping stock speculators out by having such an expensive … Berkshire Hathaway for $68? In the last decade, it only slightly under-performed the S&P. Class B shares currently cost $180, have been split before, and only carry one vote per share. Both the shares have different voting rights. Stock B might indeed be more expensive than stock A if, say, its P/E ratio was 50 while stock A's P/E ratio was 5. I just love that feeling when your 20-30% up in a stable stock. Wish I could afford to buy them, I'm starting small buying a ton of ftxp and eeenf looks like they be heading to something big here shortly, all that stimulus money coming, where do you think they are going to put it, in a 300 dollar stock hoping to make 20 bucks, or a penny stock looking to make 10k plus. Because it kind of is its own hedge fund. Shares are not overly expensive though, and Berkshire Hathaway seems fairly valued right here. Does not sound too bad in my opinion. I’ve owned it since I was 13 and it’s one of my buy and hold forever stocks. As a result, the price of each share has risen along with the immense growth of the holding company over the past decades and is … The B shares are currently trading at $4,251, the link for that is also below. So, the correct question to ask is: Why does one share of Berkshire Hathaway … Great idea for the rest of the year! Press question mark to learn the rest of the keyboard shortcuts. It’s like buying a piece of the us economy. In theory an investor could approximately mirror the holdings of Berkshire Hathaway and forgo the overhead cost of a company with over 391,500 employees. Even if you were holding long through the COVID crash BRK has surpassed its 2019 highs. ... After all, investors willingly pay more than $400,000 per share for the A shares of Berkshire Hathaway. I believe this is an excellent and very safe play for the supercharged economy coming. When did this happen?! Top Companies by Stock Price . Don't hesitate to tell us about a ticker we should know about, but read the sidebar rules before you post. Seems interesting. Are there just a very low number of the stock? The Apex Q4 Millennial 100 report analyzed more than 734,000 investment accounts owned by U.S.-based investors with an average age of 31. Why Berkshire Hathaway is so expensive Berkshire Hathaway has two classes of outstanding shares—BRK.B and BRK.A. The most expensive publicly traded stock of all time is Warren Buffett’s Berkshire Hathaway (BRK.A), which was trading at … In today's video we are going to talk about Why I Bought Berkshire Hathaway Stock. Berkshire Hathaway is so expensive because the stock has never been split. Press question mark to learn the rest of the keyboard shortcuts. With $130 bln in treasuries/cash, marketable securities around $250 bln, and the wholly owned subsidiaries (Burlington Northern, BH energy, GEICO, many more smaller ) a breakup would likely unlock value. Millennials can afford Berkshire Hathaway?! Yeah there‘s gonna be huge inflow in small stocks and meme stocks! That means that over the past 5 years, the market ETF stock has done 16.4% better than Berkshire Hathaway stock. What do you think of their payout policy: repurchases instead of dividends? But a lower share price for Warren Buffett's firm (and other … So, why Berkshire Hathaway stock is so expensive? In 1980, one share of Berkshire Hathaway stock cost less than $300. Class A shares cost about $270k and entitle the holder to 10,000 votes per share in corporate matters. I hope well-before that happens a succession plan will be released, and our fears allayed. Berkshire is awesome. Young people starting to build a portfolio and participate in the success of their economy, great stuff! I sold half of my BRK.B holdings thinking I could beat the old man, boy was I wrong. Has anyone thought about buying Berk-B stock? ), confectionery, industrial equipment and so on, and Apple. It’s practically a mutual fund. Am an owner and a fan of Buffett's chosen next gen. management. That being said, there are two different types, or classes, of Berkshire Hathaway stock. Check out our wiki and Discord! To be sure, they’re buying the less expensive Berkshire Hathaway Class-B stock (BRK-B), which currently trades at around $200 per share, compared to Berkshire’s Class-A shares (BRK-A), which have traded at or near $300,000 per share for the last two years. What if he dies? Their subsidiaries do everything from banking, transport, insurance, clothes, fast foods (remember the DQ in the malls? What do you think? It’s basically a uncorrelated asset to them. Almost any post related to stocks is welcome on /r/stocks. The site may not work properly if you don't, If you do not update your browser, we suggest you visit, Press J to jump to the feed. Shouldn't judge Berkshire on a few years, they've been around for decades. 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