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Warren Buffett discusses why shareholders should turn some Berkshire A shares into B shares

2020 5/24
Warren Buffett discusses why shareholders should turn some Berkshire A shares into B shares

Berkshire Hathaway CEO Warren Buffett answers a question about tax liabilities tied to the company’s A shares.
#WarrenBuffett #BerkshireHathawaystock #Buffett
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  • 🌟 The Investor Center - Learn Investing says:

    This guy is flexing with his class A shares

  • 🌟 The Investor Center - Learn Investing says:

    Berkshire is the most long term shareholder friendly company in the world

  • Jordan Zimmerman says:

    Converting A o B how? If you sell A it’s a taxable event even if you use it buy B. This makes no sense.

    • Sir Yoda says:

      Jordan Zimmerman I don’t want this to come out as mean nor dismissive. But it makes no sense to you because you have not taken the time to investigate and learn about how converting A to B actually works. This posting format is not ideal to describe the process in detail, but you can a) ask Berkshire directly about it, b) Google it, or c) I can post a lengthy explanation. Don’t this of this conversion as buying one and selling the other—that would be taxable. Think of it as a special method of transforming the share from on to another . . . The actually share totals outstanding of each change according to a predefined (not market-based) ratio. I’ve been lucky (and hard-working) enough to be in a position where I could do this conversion for two of my five A shares, and it makes a lot of sense. If it matters to anyone, though, you cannot go the other way. In that case, you would have to sell B to buy A, and have a taxable event. I am not sure if this has been born out over time, but with the high price of A, I continue to buy into the theory that those will be less likely to vary as much in prices percentage because of short-xterm market gyrations. So I did not convert all of them. I’m happy to see any evidence that this kind of thinking was wrong over time, though.

    • amazeballs says:

      Its not a taxable event because you’re not selling your A shares on the open market and then buying back B shares. The simplistic digest is you are telling your broker (transfer agent) to simply slice 1 piece of fruit into 1500 slices, but at the end you still have the equivalent of 1 whole fruit. It may incur a brokerage cost to do the slicing but not a tax hit for the whole amount.

    • Eagle One says:

      I think As are convertable to B shares internally, not selling and rebuying.

  • DThorn Vlogs says:

    Im to broke to comprehend 😢

    • Timothy H says:

      The a shares price is like 300k. If you sell it you get a big tax bill on the entire amount. B shares are worth like 200 dollars. So if you convert one a share to 1 b share you can now sell much less if you want to sell only 5k. So therefore if you need only 5k you get taxed on only 5k and not on 300k if you were to sell the a class share.

  • Its Me Bru says:

    A simple chat with your accountant should have cleared this up.

  • EDH says:

    Or you can give us your A shares against my Bs!!🤪🤪

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