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Buffett's charitable donation and the effect on stock price


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The Gates Foundation et al will receive 5% of WBs stock every year.  The proviso attached to it is that it must be spent in relatively short order - no holding on to it and doling out 6 or 7% a year in perpetuity.  This places a downward bias on share price (i.e. long term BRK.B stock on sale). 

 

My rough math suggests that if the 5% donation this year were sold in the market, it would represent between 8 and 9% of the total annual volume of the stock (about 17 days worth of total volume for B shares!!)

 

The gift that keeps on giving!

 

 

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I have wondered about two things will it increase the spread between A & B shares on a realtive basis, my answer to that question was yes B shares should trade at a slightly lower ratio over time all things being equal. The second question is will control ever come into question. The A shares are now effectively controlled by Warren but the amount of outstanding A shares will be declining over time. I have not thought that one thru.

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