{"id":210447,"date":"2010-01-21T13:18:00","date_gmt":"2010-01-21T18:18:00","guid":{"rendered":"tag:blogger.com,1999:blog-3087194156628161158.post-2735125410233854771"},"modified":"2010-01-21T13:19:52","modified_gmt":"2010-01-21T18:19:52","slug":"cnbc-small-investors-can-buy-into-buffett-at-lower-cost","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/210447","title":{"rendered":"CNBC: Small investors can buy into Buffett at lower cost"},"content":{"rendered":"<p><!-- AddThis Button BEGIN --><span>By: <\/span>The Associated Press  |  21 Jan 2010  |  09:22 AM  ET  <script language=\"javascript\">   function UpdateTimeStamp(pdt) {    var n = document.getElementById(\"udtD\");    if(pdt != '' && n && window.DateTime) {     var dt = new DateTime();     pdt = dt.T2D(pdt);     if(dt.GetTZ(pdt)) {n.innerHTML = dt.D2S(pdt,((''.toLowerCase()=='false')?false:true));}    }   }   UpdateTimeStamp('633996805220000000');<\/script><\/p>\n<div class=\"fL w635 lower_hd_section\" style=\"\" archive=\"urn:schemas-microsoft-com:workbench:xslt:archive\">\n<div class=\"fR tool_textsize padR\"><span class=\"cnbc_sbhd_comp fL padR\"><br \/><\/span><\/div>\n<\/div>\n<p><script type=\"text\/javascript\">setDefault('cnbc_textbody');<\/script><\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>OMAHA, Neb. &#8211; Peter Eischeid has long had his nose pressed to the glass of billionaire Warren Buffett&#8217;s investment empire, yearning to be among those with the means to buy their way in.<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>No more. Thanks to a stock split approved Wednesday, Eischeid and other small investors plan to snatch up lower-tier Berkshire Hathaway Inc. shares that will sell for just $69 and change. That&#8217;s down from about $3,500 that each Class B share commanded before.<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>&#8220;I avoided that conglomerate mainly because of the entry prices of the shares,&#8221; said Eischeid, 34, of Salt Lake City. &#8220;I know there are a lot of people that will definitely be intrigued by that lower share price.&#8221;<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>There will indeed, said Andy Kilpatrick, a stockbroker and author of a two-volume tome on Buffett&#8217;s life and business.<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>&#8220;It now makes it available to a child who cuts grass for spending money,&#8221; Kilpatrick said. &#8220;There&#8217;s nobody who can&#8217;t find $66. The last time Berkshire stock was at $66 was in 1971.&#8221;<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>Buffett has built his reputation as a savvy investor who spots quality businesses selling cheaply and either buys the stock or the whole company. Omaha-based Berkshire has investments in such companies as Coca-Cola Co. and Wells Fargo &amp; Co., and owns more than 60 subsidiaries, including clothing, furniture and jewelry companies. Its insurance and utility businesses typically account for more than half of its revenue.<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>The company&#8217;s prized Class A shares, which carry more voting rights and are not being split, are the nation&#8217;s most expensive stock at around $100,000 each. The Class B shares, dubbed &#8220;Baby Berkshires,&#8221; are splitting 50-for-1 as a way to facilitate the company&#8217;s plan to buy Burlington Northern Santa Fe Corp.<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>Among investors drawn by the lower price is Adam Bray-Ali, a self-described small investor from Los Angeles, who bought two shares of the Class B stock for just under $3,300 each two days before the split, and planned to buy another 50 or so afterward. By the end of Thursday, he plans to have about 150 shares.<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>But there&#8217;s more at play than the stock&#8217;s new affordability.<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>&#8220;I can go to the shareholder meeting this year,&#8221; the 35-year-old Bray-Ali said.<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>Berkshire&#8217;s annual meeting is the mecca of shareholder events, routinely drawing more than 30,000 to Omaha for the three-day affair that has an almost carnival-like atmosphere. The event includes a shareholder reception on the eve of the meeting, various parties and a six-hour question-and-answer session with Buffett, who tosses out financial observances in terms even the most uninitiated investor can follow.<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>&#8220;I would say that for some young investor &#8230; if you want to learn about investments, then the annual meeting is the place to go,&#8221; Kilpatrick said.<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>That&#8217;s a draw for University of Tennessee senior Nick Vantrease. The 21-year-old, who is president of the school&#8217;s Financial Management Association, said he will consider buying Berkshire stock once he graduates in May and starts working. He expects the split to be a key topic at Buffett&#8217;s scheduled meeting with college business students next month.<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>&#8220;It&#8217;ll be interesting to hear what he has to say about it,&#8221; said Vantrease. &#8220;It definitely makes the stock more affordable.&#8221;<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>Terry Porter of Kansas City, Mo., who has held Class B shares for years, believes it&#8217;s not just young investors who can take advantage of the lower entry price.<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>&#8220;I have a lot of older people ask me what they should invest in. They don&#8217;t want to be ripped off,&#8221; said the 60-year-old retiree. &#8220;I&#8217;d be the first to recommend Buffett.&#8221;<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>Opinion is split on the effect the move will have on the stock&#8217;s direction. Plenty believe it will help the Class B price rise, especially if Berkshire&#8217;s increased liquidity lands the stock in the S&amp;P 500.<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>Buffett, long opposed to stock splits, said he enjoys using stock for the railroad deal &#8220;about as much as preparing for a colonoscopy.&#8221; While the man known as the Oracle of Omaha has nonetheless supported the move, some professionals don&#8217;t see it as a buying opportunity.<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>&#8220;I&#8217;m a follower and fan of Warren Buffett, but no, I am not going to buy into Berkshire Hathaway for myself or my clients,&#8221; said Mark Pearson, president and CEO of Anchor Capital Management in Minneapolis. &#8220;I firmly believe there is greater value in other companies in the market.&#8221;<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>___<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>On the Net:<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>Berkshire Hathaway Inc.: <a href=\"http:\/\/www.berkshirehathaway.com\/\">http:\/\/www.berkshirehathaway.com<\/a><\/p>\n<p><a name=\"comments\"><span style=\"font-weight: bold;\">Share Investor Links<\/span><\/a><a name=\"comments\"><\/a><\/p>\n<p><a href=\"http:\/\/www.shareinvestorblog.com\/\">Share Investor Blog<\/a> &#8211; Stockmarket &amp; Business commentary<br \/><a href=\"http:\/\/shareinvestornz.blogspot.com\/2007\/02\/new-zealand-business-news.html\">Share Investor New Zealand Business News<\/a>&#8211; Get more business news<br \/>Discuss this topic @<a href=\"http:\/\/www.shareinvestorforum.com\/\"> Share Investor Forum<\/a> &#8211; <a href=\"http:\/\/shareinvestorforum.com\/ucp.php?mode=register&amp;sid=450a61250472e03fa25c205c9c1723f1\"><strong>Register<strong><\/strong><\/strong><\/a> free<br \/><a href=\"http:\/\/www.currency-market.blogspot.com\/\">Share Investor&#8217;s Daily Forex Updates<\/a><\/p>\n<p><span style=\"font-weight: bold;\">Recommended Amazon Reading<\/span><\/p>\n<table id=\"searchResults\" cellspacing=\"0\">\n<tbody>\n<tr class=\"clsOdd\">\n<td class=\"tdimage\"><a href=\"http:\/\/astore.amazon.com\/shareinvestorbookstore-20\/detail\/0553384619\"><img decoding=\"async\" src=\"http:\/\/ecx.images-amazon.com\/images\/I\/51hlhRX908L._SL75_.jpg\" alt=\"The Snowball: Warren Buffett and the Business of Life\" \/><\/a><\/td>\n<td class=\"tddescription\"><a href=\"http:\/\/astore.amazon.com\/shareinvestorbookstore-20\/detail\/0553384619\">The Snowball: Warren Buffett and the Business of Life<\/a> by <span class=\"by\">Alice Schroeder<\/span><br \/>Buy new:        $13.60       \/ Used from:        $11.85<br \/><span class=\"availability\">Usually ships in 24 hours<\/span><\/td>\n<\/tr>\n<tr class=\"clsEven\">\n<td class=\"tdimage\"><a href=\"http:\/\/astore.amazon.com\/shareinvestorbookstore-20\/detail\/0060555661\"><img decoding=\"async\" src=\"http:\/\/ecx.images-amazon.com\/images\/I\/41rcIrKhYiL._SL75_.jpg\" alt=\"The Intelligent Investor: The Definitive Book on Value Investing. 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No more. Thanks to a stock split approved Wednesday, Eischeid [&hellip;]<\/p>\n","protected":false},"author":833,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-210447","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/210447","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/833"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=210447"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/210447\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=210447"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=210447"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=210447"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}