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Take it backBerkshire Hathaway Class B Split
Following Berkshire Hathaway’s SEC filing last Friday, I received the ballot to vote on the splitting of Berkshire Hathaway Class B stock.
To me, it is an unfortunate sign because this would effectively invite every option trader to speculate on Berkshire Hathaway — and BRK will move away from being one of the few remaining investment equities and go towards being a speculative equity (although, one may argue that all equities are by definition speculative).
Doing some rough math, the number of Class B shares would go up from ~47 million to potentially ~2.33+ billion. And that would also raise the issuing maximum from the current 57.7 million to 3.23 billion.
Cheap options and easier buy = higher noise and higher volatility.
We should all rejoice, for it signifies the return of Gen Braham, the rather Unintelligent Speculator.
