Tax Refund

[yesthattom]

About $9000. That won't happen again for a long, long, time.

What do I plan on doing with the money? I think I'm going to purchase 1 share of Berkshire-Hathaway B.

Comments

[ambar.livejournal.com]

I did that once. It was fun. (I had to sell all that to pay taxes two years later, alas.)

[qwrrty.livejournal.com]

I thought Berkshire Hathaway was currently trading at $96,000 a share... ?

[yesthattom.livejournal.com]

Not the B stock. (I was careful to say B :-) )

UGH

[lovefox1.livejournal.com]

I need to read more. What the heck is Berkshire-Hathaway and why would it's stock be $9,000 or $96,000?

Gina Marie

NEVERMIND

[lovefox1.livejournal.com]

I love Google.com. I found it. Thanks!

Gina Marie

Re: UGH

[yesthattom.livejournal.com]

Berkshire-Hathaway doesn't believe in doing a "stock split" when the price goes up. In their opinion, it only makes ignorant people think the stock is more interesting, and they don't want those people investing in their company.

The way a stock split works is, say a stock price gets to $200 and people start saying, "Gosh, that's too expensive to purchase anymore." Well, they change the price to $100/share and make all the old shares equal to 2x shares. So if you had 10 at $200, you'd now have 20 at $100. Either way it is still worth $2000. Now, people tend to buy stock in chunks of $10,000 (or even $1,000) at a time. So now they can buy 100 shares instead of 50. Companies do this because they're afraid their stock price would get to $1000 it wouldn't match people's expectations of what stock should cost. Of course, that's silly. When you were little did anyone try to get you to trade a your little tiny dime for their big, thick nickel?

BH is run by Warren Buffet, the self-made billionaire that advises people like Bill Gates and others. However, he's against Bush's tax cut for the rich because he thinks he's getting too much of a free ride. He also thinks companies should pay more taxes too.

BH owns many companies, including Geico auto insurance.