A new chance at Buffett
If Berkshire Hathaway shareholders approve a split of the company's B shares, you could buy one for less than $100.
Berkshire Hathaway (BRK.A) shareholders are being asked to approve a 50-to-1 split of the company's B shares (BRK.B). If they give the thumbs up (and they are expected to), the price of the shares will likely drop to $65 from around $3,250, reports Conrad de Aenlle at CBS MoneyWatch.com.
Putting the same amount into Vanguard's S&P 500 index fund would have returned only $4,750.
But don't expect to see the results repeat. Even Buffett himself has said that Berkshire returns won't be as good as they were in the past, experts tell CBS MoneyWatch.com.
Berkshire’s market value of more than $150 billion and annual sales exceeding $100 billion suggest that it has run afoul of the law of large numbers. At that size, it takes ever bigger acquisitions to have a significant impact on earnings, so earnings growth is bound to slow.
So don't go pouring your entire nest egg into Berkshire. But if you want to grab on to Buffett's coattails and see where he takes you, here's your chance.
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The company has made at least 4 acquisitions in the space, and few people have paid any attention.
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