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Buffet Splitting His Class B Shares
December 4th, 2009 
Genius Warren Buffett’s Berkshire Hathaway has set the date for a shareholders meeting related to its planned acquisition of Burlington Northern Santa Fe.
In a preliminary proxy statement filed this morning with the SEC, Berkshire gives notice that a special meeting of shareholders will be held at 9:30a on Wednesday, January 20, 2010, at Omaha’s Holland Performing Arts Center.
Shareholders are being asked to approve a 50-for-1 split of Berkshire’s Class B shares, without splitting the higher-priced Class A shares.
That split would bring Class B shares down from about $3300 each (at today’s price) to roughly $66 each.
In an interview with CNBCjust after the Burlington deal was announced about a month ago, Buffett told us:
“I’m not big on stock splits. But by having this split, it enables anybody that has as little as one share of BNSF to opt for the tax-free exchange… So those small shareholders can have exactly the same availability that otherwise would only have been available to a big shareholder.”
So what?
Well in my opinion this is good news for option sellers. Why? Because Berkshire is a good stable stock. Not volatile and now well priced to sell options on. I am going to be keeping an eye on this one. Who knows? It might become on of my favorite stocks to do income strategies on. Time will tell.
Good idea but you are not going to collect much premium by selling puts on Berkshire.
What will be your comments.
waiting for your reply!
We will have to see when they come out how much premium they have. I am assuming the stock will not move much in price and be something like a Coke (KO) or Wal-Mart (WMT)
You are very right. Good to own as long as Mr. Buffet is alive and good. I wish him long life. But if he is not there then stock might go south and can be good for option sellers. Again I wish him long and good life. What you think?