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In this Where the Money Is segment, Motley Fool analyst Matt Koppenheffer takes a question from a WTMI reader, who asks whether Berkshire Hathaway's (NYSE:BRK-A)(NYSE:BRK-B) class A shares or its class B shares represent the better buy. He notes that class B shares have slightly underperformed class A shares historically, and wants to know whether X number of dollars would be better spent picking up one share of class A, or the equivalent of class B.
Matt says that market dynamics are the only real factor here that affect the difference in performance between the two classes, but notes that having class B shares gives an investor flexibility. It allows an investor to sell a few shares here and there to create an artificial dividend, or rebalance away from Berkshire if the stock runs up too high, but holding a single class A share makes selling an all-or-nothing scenario.
Matt Koppenheffer owns shares of Berkshire Hathaway. The Motley Fool recommends Berkshire Hathaway and Interactive Brokers. The Motley Fool owns shares of Berkshire Hathaway. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.