Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
No. of Recommendations: 2
https://finance.yahoo.com/news/buffett-berkshire-b..."One of South Korea’s largest retail brokerages now plans to package the Class B shares into an exchange-traded fund turbocharged with derivatives, another move that Buffett might not like.
Kiwoom Securities Co. teamed up with Milwaukee-based Tidal Investments to form an ETF designed to provide 200% the daily performance of Berkshire, according to a regulatory filing."
oh boy
No. of Recommendations: 1
No doubt!
No. of Recommendations: 1
I bet he will body slam the idea & concept at the Meeting in a direct and professional way with well chosen words, as only Warren can do. Sad- Firms will market and sell anything nowadays!
No. of Recommendations: 10
The smelliest word in the product description is "daily" performance.
If it aimed at doubled the rolling annual returns, hey, that might be the dark side of the force but at least it wouldn't be pure gambling.
Jim
No. of Recommendations: 1
Why should Buffett care?
I imagine that there are a lot of ETFs & trading schemes that he thinks are dumb. He doesn't rail against those. This isn't any different in concept from the other 2X and 3X ETFs.
I believe that the only reason he created the B shares was because some firm was going to create fractional portions of BRK shares.
Firms will market and sell anything nowadays!
As has always been. Firms will market anything that people will buy.
No. of Recommendations: 5
Why should Buffett care?
From the article:
"In a 1996 letter to shareholders, Buffett warned that such trusts were “expense laden” vehicles that brokers would market “en masse to unsophisticated buyers” in order to earn big commissions. That would have burdened Berkshire “with both hundreds of thousands of unhappy, indirect owners (trustholders, that is) and a stained reputation.”"
