billionaire investor Warren Buffett took the initiative to stock splits his investment company Berkshire Hathaway.

Chapter Berkshire Hathaway shareholders suggested the company to split (split) shares of the company, in which each existing share Berkshire Hathaway class "B" investors will be able to change to 50 new markets. If shareholders support Warren Buffett, Berkshire shares of Class "B" will be 1.8 million, and the cost of each drop from $ 3250 to $ 65.

main reason being split of shares, - the desire to Buffett"s most complete its acquisition of railroad operator Burlington Northern Santa Fe. Buffett"s company Berkshire Hathaway has made an offer to buy Burlington Northern Santa Fe, implying the payment as cash and shares. However, the treatment is too little stock Berkshire Hathaway, and diluted share by an additional issue of shares, Mr. Buffett strongly unwilling.

Crushing

shares class "B" will be the biggest change in shareholding structure of Berkshire Hathaway. After crushing the liquidity of shares will increase substantially, which will allow the company to enter the SP 500 index. Also split will help expand the investor base of the company, making the action much more available for investment by small investors.

Earlier

Warren Buffett was known for his extremely negative attitude to the fragmentation of the share capital. He claimed that the company"s stock must be expensive, and shareholders must hold at the stadiums. In 1980-ies. He argued that such actions lead to the appearance among ordinary investors speculators who do not pay any attention to the philosophy of the company. But in 1996, Warren Buffett allowed shareholders to Berkshire Hathaway "A" class, which now cost about $ 97.5 thousand, to exchange each paper of 30 shares of Class "B", which give owners a limited right to vote at the meeting. Fragmentation occurred for the sake of small investors who are actively invested in funds, copying the behavior of Warren Buffett on the market. Nevertheless, the billionaire said at the time that would not advise buying these shares to their relatives or friends.

"When the stock price at $ 65 apiece, this split opens up new investment opportunities to ordinary investors. At the same time, the company"s fundamentals remain the same, and the process of splitting itself will not be considered as an opportunity to purchase shares of the company. Not Remember that in many respects, investors will evaluate these changes in terms of the deal to purchase the railway company Burlington Northern ", - said analyst brokerage firm Keefe Bruyette Woods Cliff Gallant.

Some financiers surprised by the decision of Warren Buffett. They say that the famous investor has to pass. "In my opinion, the acquisition of Burlington Northern - this is the last major deal Buffett. I think he would end his tenure as head of Berkshire Hathaway in the year. Many of its recent decisions, in particular, reliance on financial services companies in the midst of crisis, whether American Express or Wells Fargo, had to put it mildly, questionable. With all due respect to him as a brilliant investor with years of investment flair has let it down, "- says a partner at hedge fund Seabreeze Partners, Doug Cass.

Many analysts agree that attracting new capital at the expense of ordinary investors - this is certainly not the main oee6bjective of Berkshire Hathaway. Stock split and use a substantial portion of equity in the company"s purchase of Burlington Northern - is not only an investment with an eye to the future, but also bet on a weak dollar, rising energy costs in the future.

Like other western financiers, Warren Buffett is increasing investments in Asian markets. Thus, the largest steel company in South Korea"s Posco, the most profitable in Asia, this week reported that Berkshire Hathaway, which owns 3.95 million shares in Posco, tends to increase this package. Warren Buffett bought 4.5% stake in Posco for $ 768 million in February 2007 now cost more than $ 2 billion U.S. billionaire investor intends to acquire more shares of Posco after it missed the opportunity to buy them at low prices in 2009 , when the global financial crisis has substantially reduced the value of assets. "I should buy more shares of Posco, when their price fell heavily as a result of the economic crisis last year," - Warren Buffett regrets.

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