No. of Recommendations: 2
I'm reminded RW wrote about this,
"Conclusion
While in absolute dollar terms, the trades I made recently are meaningful to me, the dollar amount represent a relatively small percentage of the capital at stake. I am not sure that Warren Buffett would approve of what I did, although his statement that the Class B shares represent a better value than Class A when the discount is over 1% leads me to believe that he would at least understand my motivation for the trade.
It is also important to note that the transactions were not free of risk because market prices can move very quickly at times. Although unlikely, it is not unheard of for the market price of Berkshire’s stock to advance or decline by 1-2% in a short period of time, especially at times of market volatility. Class A shares are also relatively illiquid and it is essential to use limit orders.
My core position in Berkshire is in Class B shares in my taxable account purchased between 2000 and 2005, as I discussed in my article a few years ago marking twenty years of ownership. There is no possibility of selling those shares to purchase Class A shares due to the large tax bill that would be due. However, it is possible to do these types of transactions in IRA accounts without a tax hit.
I hope to switch back to Class A stock in my IRA the next time the Class B discount is nearly eliminated. Assuming I am able to do that, I should probably refrain from engaging in this type of activity ever again. At some point, the Class B discount might widen permanently as market participants begin to value the voting power of the Class A shares more highly. As someone who cares about the future of Berkshire Hathaway, I value the greater voting rights of the Class A stock although I am not under any illusion that my level of ownership will make much of a difference.""
https://rationalwalk.com/berkshire-hathaways-class... 