Comments on: The Berkshire Anomaly

By: Berkshire and Citigroup Anomalies

Berkshire and Citigroup Anomalies — Mon, 06 Jul 2009 06:16:54 +0000

[...] pricing anomaly is small compared to Citi’s, but still interesting. As I discussed in my original post, the source of the anomaly is that Berkshire Hathaway (BRKa) (BRKb) has two classes of shares: A [...]

By: Citigroup & Berkshire Anomalies « Donald Marron

Citigroup & Berkshire Anomalies « Donald Marron — Mon, 06 Jul 2009 04:05:47 +0000

[...] pricing anomaly is small compared to Citi’s, but still interesting. As I discussed in my original post, the source of the anomaly is that Berkshire Hathaway has two classes of shares: A and B. The B [...]

By: sgt.red.blue.red

sgt.red.blue.red — Thu, 04 Jun 2009 21:38:17 +0000

This is interesting. Our portfolio has both A and B shares. I have always faceteously said the A shares represent ‘smart money’ and B shares ‘dumb money’. Or maybe the A shareholders are more the ‘strong hands’ players and B shareholders ‘weak hand’ players,

I noticed thie pricing vagary recently, as did you. I am non smart enough, or quick enough to act on this. That is what the specialists are charged to do, provide for an orderly market in the security(s). I’m sure the specialist could explain to you how and why the spread varies.

As far as the voting rights [extra voting rights of the A shares are worth paying a premium. Perhaps they know something we don’t] hypothesis, I don’t think that most players purchasing shares on the open market, whether A or B, have enough clout, assuming they know more than the current board, would have any value to effect a board decision.

Good subject matter for a B school study.