Would you buy Berkshire Hathaway class a stock?

[desert monk]

I have a portfolio of about $80,000 in different dividend stocks, and I've always wanted to buy a share of Berkshire Hathaway class a. The pros: brk-A has always traded at or near it's all time high; it's extremely diverse in it's holdings; buffet is arguably history's most brilliant investor; it has a very sold return over time. Cons: the price (currently about $215000 U.S. per share); it does not pay a dividend; buffet is getting very elderly and probably won't be around that much longer (though he already has a successor picked).

I am not a rich man, but I am pretty well off in the sense that I make a good income and have money to invest. I am wondering if I should save for a share of BRK-A or just keep buying blue chip dividend stocks ? I could buy brk-class B shares for the ~$143usd they are currently charging, but that gives up the protection offered by a stock that will never split it's share price to lower the ownership criteria.

I basically want stocks that I can hold for the next 20 years or so and then retire with the money/live off the dividends. Am I crazy for seriously considering brk class A shares? What do you guys think?

 

[Brotherman]

Class A shares have a very wide bid/ask spread with a low volume. Meaning, after putting in the order you will immediately be at a loss. It also means, your order will take a long time before getting filled and run the risk of never getting filled. Class B shares are very liquid with a tighter bid/ask spread. You want the class B stock. You have a greater chance of selling the stock at the price you want.

Berkshire Hathaway holdings include companies like Visa and Mastercard, which you can buy yourself for alot cheaper with regular reliable dividends too.
It's still a good pick for your portfolio, just remember you won't be getting a dividend.

 

[goodguy1977]

Hello there,

Very interesting question, I've personally done a lot of work on Berkshire Hathaway, very interesting company but take away the "hype" and take the following points:

-You need to have a diversified portfolio of assets with some fixed income. Brk is just an equity component.
-You should diversify across industries, Brk has done poorly or under weighs technology.
-With your holding period time of 20 years... Warren won't be around or if he is he won't be in any condition to manage the company.
- As for succession planning, he hasn't named who it is, and to be frank his decision making recently on analysts and advisors have been skeptical.
- The valuations are at historical highs
- There's a Warren premium built into the stock, I hope he lives o 1000 but if he doesn't that premium goes.
- Stock splits don't economically mean anything.

So long answer to a short question... buy some baby bs and pick up some fixed income to round out your portfolio.

Good luck folks.

Goodguy

 

[ultistar]

I could buy brk-class B shares for the ~$143usd they are currently charging, but that gives up the protection offered by a stock that will never split it's share price to lower the ownership criteria.

There's no difference in the value of class A and B shares; there's a fixed multiple between the two. If there were difference in value, there would be an arbitrage opportunity which would disappear in microseconds. A may have some higher priority voting rights than B but it's inconsequential, you won't be able to out vote Buffet.

 

[red]

Given your investment capital- I would not recommend this stock