$4 Bln Charity Donations

Warren Buffett on Tuesday donated about $4 billion to the Bill & Melinda Gates Foundation Trust and four family charities, part of the billionaire’s pledge to give away nearly all of his net worth.

Berkshire Hathaway Inc (BRKa.N), which Buffett has run since 1965, said the donation comprises about 14.4 million of its Class B shares, whose closing price on Tuesday was $277.64.


That works out to 9600 fewer A shares outstanding, which Buffett probably converted to B shares to donate.


Last thing we need is more supply

Hopefully WEB buys

Warren Buffett of Berkshire Hathaway (NYSE:BRK.A) converted 9,608 A shares into 14,412,000 B shares to donate shares.

Buffett’s ownership in Berkshire now consists of 229,016 A shares and 276 B shares.


I can’t believe it. I own more BRK.B than Buffett.


“Last thing we need is more supply”

Actually I think this will cause more demand rather than supply. The reason is that when WEB convert, the BrkB float share, used by index providers for calculating index weights, increases. So they will be changing the weight of Brkb in indices soon, resulting 10-15% of the shares donated being forced bought by ETFs. I think this weight change happens quarterly but could happen sooner if there’s a big change.

On the other hand, the foundation is more likely to sell shares over time.