No. of Recommendations: 8
Regarding Greg' purchases of BRK stock,
Mungofitch:
Mmm, yeah. It's a vote of confidence. But also virtue signalling.
Google's AI:
Rule 10b5-1 Plans: To avoid accusations of illegal insider trading, corporate executives often use Rule 10b5-1 plans, which set pre-scheduled, automated buying or selling. This allows them to trade while in possession of material non-public information without violating SEC rules.
Voluntary Disclosure & Legal Compliance: While not legally required to use a 10b5-1 plan for every purchase, Abel's commitment to buying shares immediately after the release of annual results suggests a structured approach that avoids trading during sensitive, closed windows.
The fact that Abel is highly constrained by law as to making sure he publicizes his share purchases and highly motivated to avoid prosecution by having it be by a mechanistic pre-announced plan, is it really fair to call this virtual signalling? Is there another way he could buy BRK stock that does less signalling, or at least signals less virtue?
R:)
