Berkshire Hathaway

Does anybody here own any shares in BRK? Just wondering how easy it is to buy/sell just one share, since it's a very odd lot (but then, the value of one B class share is $3K anyhoo). Is it worthwhile to own just one share, or do Canadian/US government regulations/taxes make it not worth it?

I do not currrently own the stock but from what I read in books about Warren, I don't think Berkshire Hathaway will distribute dividend and thus if you are holding it long term you will not be taxed until you sell your share. Yes you can buy one share of Berkshire Hathaway. Only instituational investors could afford buying 100 shares of BRK.b in one transaction.

The class-A closed today at $87,000 !!!!

Interesting reading their annual reports on the website. Warren Buffett is one smart cookie.

He really doesn't like large volumes and fluctuations in his company so that why there are so few shares outstanding and why they are so expensive

Did you see the historic performance of the shares?? Warren Buffet is indeed one of the best investors around.

Originally Posted by Powderworker

Does anybody here own any shares in BRK? Just wondering how easy it is to buy/sell just one share, since it's a very odd lot (but then, the value of one B class share is $3K anyhoo). Is it worthwhile to own just one share, or do Canadian/US government regulations/taxes make it not worth it?

The odd lot stuff does not apply because Berkshire does not split its stock the way most companies do.

Powderworker:

AFAIK, all Canadian brokers handle BRK.A/B orders as manual orders, so it doesn't matter if you buy 1 share or 100 shares. Just don't expect to buy them on the cheap (i.e. pay the offer).

Given BRK will likely never pay any dividend, consider it like buying a closed end fund with all distributions reinvested, then taxed as cap gains when you sell. Better tax treatment than anything else.

AFAIK, all Canadian brokers handle BRK.A/B orders as manual orders, so it doesn't matter if you buy 1 share or 100 shares. Just don't expect to buy them on the cheap (i.e. pay the offer).

Given BRK will likely never pay any dividend, consider it like buying a closed end fund with all distributions reinvested, then taxed as cap gains when you sell. Better tax treatment than anything else.

Not true. My discount broker handles it as a stock purchase. I trade online with TD Waterhouse, and the other online discounters are the same. You can see what the bid/ask prices are and can put in you order at the bid same as anything else. No more of a reason to pay the ask than with any other stock.

And while brk has never paid any dividend, Buffet personally said that given the huge Bush tax cut for US citizens receiving dividends, he MAY pay one. Probably a 1 time payment. If Buffet gets opportunities to purchase attractive assets at cheap prices, there will be no dividend, but otherwise it is possible.

And BTW brk shares have gotten a bit cheaper lately due to insurance scandals in the US. Buffet is clean as can be but there is bad publicity anyway. I am hoping the price comes down some more, I love to buy cheap.

Originally Posted by dlander

Not true. My discount broker handles it as a stock purchase. I trade online with TD Waterhouse, and the other online discounters are the same.

Dlander, maybe you can try entering an order on webbroker for Brk (either A or B) shares

That's right, you can't. If you were to call up an investment representative, s/he will say it's a best-efforts order, and the order will not show until it's filled.

I WORKED at TD Waterhouse in a different life -- I know a thing or two about order routing.

You can see what the bid/ask prices are and can put in you order at the bid same as anything else. No more of a reason to pay the ask than with any other stock

No there isn't; but the difference between the bid-ask is minimal, and if you are seeking liquidity, you might as well pay the extra few bucks. The cost of not getting filled could easily exceed that.

And while brk has never paid any dividend, Buffet personally said that given the huge Bush tax cut for US citizens receiving dividends, he MAY pay one.

True, but Berkshire also targets 15-20% ROE (or some IMO absurd number). That will be very hard if they pay large amounts of dividends. He may be saying that just to set the stage for future "disappointments".

I'll believe it when I see it.

Originally Posted by ogs20

True, but Berkshire also targets 15-20% ROE (or some IMO absurd number). That will be very hard if they pay large amounts of dividends. He may be saying that just to set the stage for future "disappointments".

I'll believe it when I see it.

I'm too lazy to look up the exactly number, but I believe BRK's ROE for the last 30 years is around 20 something % compounded. Although, WEB said he expect BRK's return to be in the single digits going forward since BRK has grown so hugh and he is having trouble finding good businesses that are large enough for him to invest in.

On TD Waterhouse, I tried to enter an order, and got this message:

"The order details that you have entered require the attention of a Registered Representative. Please contact your local TD Waterhouse office for assistance"

So the order has to be placed over the phone, where I'll have to pay higher commission fees?

Maybe you can try entering an order on webbroker for Brk (either A or B) shares

That's right, you can't. If you were to call up an investment representative, s/he will say it's a best-efforts order, and the order will not show until it's filled.

U are right. You need to call up to have the order placed by a rep.

True, but Berkshire also targets 15-20% ROE (or some IMO absurd number). That will be very hard if they pay large amounts of dividends. He may be saying that just to set the stage for future "disappointments".

I'll believe it when I see it.

U are wrong. Not saying that a dividend is coming as Buffet is still hoping to deploy the capital in a sizable aquisition. But the ROE comment is incorrect. Giving a big dividend would raise BRK's ROE not lower it. They are sitting on over $40 billion cash which is earning peanuts. Pay out a sizable dividend from the undeployed cash and shareholders equity drops. Meanwhile net income barely moves as the cash is earning very little.

Given brk's current balance sheet, the net effect of a dividend is that ROE goes on up on the back of the lower equity.

It would really suck to buy the stock and then receive a large dividend, because you would have to pay tax on that dividend even though you never participated in the growth leading up to it!

wow.... drop $2000 a share on friday!

I saw mention of a way you could use Canadian Shareowners Investments Inc. to buy BRK.B-N

See:

http://www.investments.shareowner.co..._details1.html

and

http://dripinvesting.org/Boards/Read.asp?MID=32930

NV