An expensive way to buy cheap Berkshire Hathaway

[Nords]

Wachovia is offering 10-year structured debt notes linked to the price of Berkshire Hathaway's "B" shares. *At least that's what they're supposed to be linked to, minus a 1% sales fee and an annual 1% ER... *

The article says "The notes won't pay interest; instead, they will pay an amount equal to the closing price of Berkshire Hathaway's B-shares, minus a daily adjustment fee."

A decade ago this type of finagling is what led Buffett to establish the "B" shares. *I wonder if Wachovia is going to stampede him into "C" shares?

[lazyday]

They could just do a bloody stock split already, say 100 for 1 on the B shares.

[Nords]

Quote:

Originally Posted by lazyday They could just do a bloody stock split already, say 100 for 1 on the B shares.

Yeah, but Buffett doesn't want people flipping the stock. Liquidity is so low right now that most analysts won't follow it, and that's how he wants it.

Most of these schemes doom themselves with high expense ratios. If someone created a Berkshire ETF with a 0.10 ER that might force Buffett into a decision...