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Business

What’s the Difference Between Berkshire Hathaway A Stock and B Stock?

Berkshire Hathaway is a holding company owned by Warren Buffett and is one of the most successful and well-known businesses in the world. The company has two classes of stock, A and B, and the two stocks have some important differences. In this post, we’ll explore the difference between the two types of stock and what that means for investors.

Class A Stock

Berkshire Hathaway Class A shares are the company’s original stock, and are traded on the New York Stock Exchange under the ticker symbol BRK.A. Class A shares are the most expensive, currently trading around $350,000 per share. The stock is known for its high dividend yield, and investors receive one vote per share when voting at the company’s annual meeting.

Class B Stock

Berkshire Hathaway’s Class B shares are much more affordable, trading around $250 per share. The stock still carries the ticker symbol BRK.B and still pays a dividend, though it is not as high as the Class A stock. In addition, Class B shares only carry one-tenth of the voting power of Class A shares.

Conclusion

Berkshire Hathaway A stock and B stock are two classes of stock offered by the company. Class A stock is the most expensive, but carries more voting power and a higher dividend yield. Class B stock is more affordable and pays a dividend, though it carries much less voting power. Both classes of stock offer investors a chance to benefit from the long-term success of Berkshire Hathaway.

Categories
Business Video

Why Warren Buffett Started a Partnership – not a Mutual Fund

Great little video about why Warren Buffett started a partnership and not a mutual fund. Its all about the terminology.

Categories
Business Finance

Elon Musk Unloaded $10 billion Worth of Tesla Shares this Month

Over the past month Elon Musk has unloaded $10 billion worth of Tesla shares.

Currently Elon still ranks No. 1 on the global Bloomberg Billionaires Index, with a net worth of $284 billion.

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Business

Warren Buffett: How To Achieve A 30% Return Per Year Investing (7 Investing Rules)

Here is a great video on some of Warren Buffett’s very simple ideas and principles. It doesn’t elaborate on some of the key points, but it’s a great starting point.

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Business Stock Market Tech

Can I Buy Shares in Monday.com?

Yes.

Monday.com has just gone public and now anyone can buy shares in the productivity software giant.

Stock Ticket: MNDY

For analysis and information please take a look at Yahoo Finance.

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Business Stock Market Tech

Tesla Shares See Their Biggest Ever Single Day Decline!

Tesla shares have finished the day at 21.06% down. This is the biggest single day share decline for the company in its history.

Why this matters: Tesla is a company going after a big dream. However, it also seems to be the company that is riding a very high valuation based on very little fundamental numbers being it. Revenues have increase 14% in the past 12 months, but the share price has increased 573%.

My views: I love the company and I love what they are trying to achieve, but it seems like they have become the poster child for a heavily overpriced stock market based on poor fundamentals.

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Business Finance Stock Market

What is the Difference Between Berkshire Hathaway BRK.A and BRK.B Shares?

There is very little difference between Berkshire Hathaway’s BRK.A and BRK.B shares.

BRK.B shares were created because Warren Buffett noticed that the BRK.A shares were growing considerable high is cost per share and that these shares were less obtainable by the average retail investor and could only be purchased by either very wealth individuals, unit trusts or mutual funds.

Thus, Warren decided to create BRK.B shares to provide the average investor with the opportunity to purchase shares in Berkshire Hathaway without the huge cost associated with BRK.A.

There are other very small differences, but the above is the only one that really counts.

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Business Stock Market

Why would a public company want to split it’s stock?

Get share price down, for public companies. Still an issue today. Apple at $1000+ makes each share hard to buy for smaller investors.

Match a typical IPO share price, pre-IPO. Start-ups still like to IPO around $15-20 per share, plus or minus. This gives room for a “pop” and a share price still well under $100. If your private, pre-IPO share price is say $40, then a 2-for-1 forward split will get that down to $20, with the same economics for each shareholder and employee.

Apple and Tesla are both splitting their stock at present. This is to really drive some demand with smaller investors and allows them to have ownership over a great number of full stocks.

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Business

Wayfair is up over 250% in the past Year and Growing Faster than ever in Home Improvements and Gardening

Wayfair has seen amazing growth over the past year to the point of growing over 250% in the past 12 months.

Why?

Coronavirus has caused a lot of people around the world to work from home and to remain at home. It seems people have been focusing on home improvements and gardening.

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Business

Who is really the richest person in the world? Putin? A Rothschild?

Jeff Bezos is currently the wealthiest person on the planet due to his controlling stake in Amazon. (However, he has a lot of private investments also).

The wealthiest remaining Rothschild has a net worth under $2 billion. Family fortunes tend to become diluted and squandered through the generations. The Rothschild’s wealth is exaggerated by outdated, anti-semetic conspiracy theories.

Putin is certainly very wealthy, but my guess is that he couldn’t exercise full control over all the money he nominally controls without alienating his fellow oligarchs or tanking the Russian economy.

This leaves Jeff Bezos as the wealthiest person on earth.

Categories
Business Finance

WMG – Warner Music Group Starts Selling Shares on the NASDAQ Today

Warner Music Group is going live on the NASDAQ today. Warner are offering 77 million class A shares at $25 a share. If Warner opens up at $25 per share that means they will have a $12.8 billion valuation.

It’s going to be very interesting to see if investors have an appetite for music companies again.

Underwriters for the new offering include Morgan Stanley, Credit Suisse, and Goldman Sachs. Ticker symbol will be WMG.

Warner Music Group has an amazing catalogue, but I’m very keen to learn more about their recent investments and what other industries they think they can enter, because doing the old record label model just isn’t going to gain enough growth over the next 20 years.