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.

By Kim Peterson Jan 15, 2010 2:46PM
Warren Buffett. Image credit: © Chip East/ReutersSoon you may actually be able to afford a share of Warren Buffett's company. Is it worth a buy?

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.
De Aenlle thinks it's a smart way to invest. If you had put $1,000 into Berkshire in 1990, you'd have a nice $12,000 by the end of last year, he reports.

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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