There is a risk that A shares and voting rights will increasingly end up in the hands of institutions. Not many long-term oriented retail investors can buy A shares at over half a million dollars each. The trend will accelerate as the estates of Buffett, Munger and other aging shareholders liquidate their A shares.

Some of these institutions may seek short term gains from breaking up the company or disrupting excess cash etc. Others may be activists group seeking to promote ESG or other causes and may not be seeking to maximize their financial returns.

I wonder if this motivating Buffett to pay higher premiums for repurchases of A shares over B shares. A few years ago Buffett stated that a premium of more than 1% for A shares was not justified. Yet he is now willing to pay a premium of 3% and more for A shares. Could it be that he is getting wise to the risk of concentration of A shares and voting rights in the hands of institutions not interested in the best long term economic outcome for the company?