Jan 27, 2010
Berkshire Hathaway to be added to the S&P 500
This is great news for any Berkshire Hathaway shareholder. By being added to the index, managers are going to be forced to pick up B shares and in turn help drive the stock’s price up:
Buffett, who is Berkshire’s chairman and CEO, wasn’t immediately available to comment Tuesday afternoon, but he discussed the prospect of Berkshire joining the S&P 500 during last week’s special shareholder meeting on the stock split.
Buffett said he expects Berkshire will benefit from joining the S&P indexes, saying it will suddenly have buyers for about 6 percent of its shares because many investment funds buy stock in the companies in the S&P indexes to mirror the moves of the indexes. And those mutual fund buyers would plan to hold the stock long-term, which is what Buffett wants.
“Over time, if it’s in the S&P, I think it’s a slight plus for shareholders,” Buffett said last week.
Buffett’s Berkshire to be added to S&P indexes
Now about that Dow Jones Industrial Index…
Recent Comments