Differences between Berkshire Hathaway A stocks (NYSE:BRK.A) and B stocks (NYSE:BRK.B)
Here is a quick look at the differences between Berkshire Hathaway A stocks (NYSE:BRK.A) and B stocks (NYSE:BRK.B).
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1. The prices are obviously different. Some Berkshire Hathaway shareholders wanted the ability to gift shares in Berkshire Hathaway to their friends and family and this cant be done because the price is over $10,000. Additionally, Warren Buffett has been a firm believer in not splitting stocks. Buffett has stated that stock splits work under certain circumstances, but not for Berkshire Hathaway. Thus, Berkshire Hathaway created a B stock which runs at a much cheaper price.
2. Berkshire Hathaway A stocks come with voting rights, but Berkshire Hathaway B stocks have no voting rights.
3. Berkshire Hathaway B stocks dont include certain derivatives. This is shown in the market capitalization difference between Berkshire Hathaway A stock and B stock. As at 13 August 2013 the difference is approximately worth $740 million.
Disclosure: I am a shareholder in Berkshire Hathaway.
