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Re: Prudent Capitalist post# 1525

Tuesday, 03/02/2021 8:45:11 AM

Tuesday, March 02, 2021 8:45:11 AM

Post# of 2126
An esoteric challenge is to try to profit from occasional price disparity between BRK.a and BRK.b.

Nowadays the ratio between the two is 1500 to 1 so that the A shares trade around $375,000 while my B shares are just below $250. Years ago the ratio was 30 to one. But the two classes don't move in lockstep. For one thing, they have different voting power.

Several academic articles have appeared over the years on arbitraging pricing anomalies that sometimes occur.
https://rationalwalk.com/berkshire-hathaway-ab-spread-arbitrage/

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