8-KOther EventsExhibits & Filings

BERKSHIRE HATHAWAY INC 8-K Report, Corporate Update (Jan 21, 2010)

Filed January 21, 2010For Securities:BRK-BBRK-A

Summary

Berkshire Hathaway Inc. (BRK-B) filed an 8-K on January 21, 2010, to report the outcome of a Special Meeting of Shareholders held on January 20, 2010. The primary purpose of this filing was to announce that shareholders approved amendments to the company's certificate of incorporation. These amendments authorize a significant 50-for-1 stock split for Berkshire Hathaway's Class B Common Stock. This stock split is a material event for investors as it directly impacts the per-share trading price and potentially increases the liquidity and accessibility of BRK-B shares. While not changing the underlying value of an investor's holdings, a stock split can make shares more attractive to a broader range of investors and may signal management's confidence in future growth prospects that are expected to support the higher number of shares.

Key Highlights

  • 1Shareholders approved a 50-for-1 stock split for Berkshire Hathaway's Class B Common Stock.
  • 2The approval occurred at a Special Meeting of Shareholders on January 20, 2010.
  • 3The amendments to the certificate of incorporation enabling the split have been formally approved.
  • 4The filing includes a press release announcing the shareholder vote outcome.
  • 5This action is expected to lower the per-share trading price of Class B shares.
  • 6A lower per-share price can potentially increase stock liquidity and accessibility for a wider investor base.

Frequently Asked Questions

The main event reported is the shareholder approval of a 50-for-1 stock split for Berkshire Hathaway's Class B Common Stock.

The Special Meeting of Shareholders took place on January 20, 2010, and the 8-K filing was made on January 21, 2010.

The stock split will increase the number of Class B shares you hold by 50 times, but the total market value of your investment will remain the same immediately after the split, as the price per share will be divided by 50. For example, if you owned 10 shares at $3,000 each (total $30,000), you would then own 500 shares at $60 each (total $30,000).

The primary benefit is to make the Class B shares more accessible and affordable to a broader range of investors by lowering the per-share trading price. This can potentially increase trading liquidity and make it easier for smaller investors to purchase shares.