Post #19750 by mungofitch on the Berkshire Hathaway board

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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)

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Wouldn't you expect arbitrage of some sort to close that gap whenever it's larger than, let's say, 2%?

I'd expect arbitrage to keep the two share price ratios in the rough vicinity of the economic interest ratio of 1500:1, yes.

But that's a different question from what the preference of head office might be when contemplating buybacks on any given day. They prefer A shares. Wasn't a 3% premium mentioned in the owner's manual?

Jim

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