For years, you may have eyed buying into billionaire Warren Buffett’s company, only to resist because of the steep price. Now that’s all changed.
The Wall Street Journal reports that millions of Americans will for the first time own a piece of Buffett, starting today.
Buffett’s Berkshire Hathaway Inc., whose multi-thousand-dollar share price made it a thinly traded luxury of wealthy investors, is going mainstream as it joins the Standard & Poor’s 500-stock index, the WSJ writes.
More than $1 trillion of investor money directly tracks the index. The result is a scramble for Berkshire shares by index funds that, by one estimate, will reach $14 billion of buying, WSJ reports.
Small-time investors, meanwhile, will finally be getting a piece of Buffett just as uncertainty builds about the future of his $178 billion conglomerate, WSJ says.
The 79-year-old Mr. Buffett is entering the twilight of his career, and little is known about his succession plans.
Yet small investors, the WSJ says, are likely soon to have billions of dollars more in Berkshire stock, thanks both to its entry into the index and to a recent stock split.
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