Berkshire Arbitrage Opportunity Eliminated

Berkshire Arbitrage Opportunity Eliminated

Over the past month, I wrote a few posts regarding potential arbitrage opportunities available due to discrepancies between the relative valuations of Berkshire Hathaway’s Class A and Class B shares. The arbitrage opportunity identified in these posts has now been entirely eliminated as a more “normal” relationship between the Class A and Class B shares returned. Read this post to revisit what took place over the past month and the implications for the notion that the market for Berkshire Hathaway shares is “efficient”.

Berkshire Arbitrage Opportunities Revisited

Berkshire Arbitrage Opportunities Revisited

Last month, I wrote about potential opportunities to profit from arbitrage from pricing discrepancies between Berkshire Hathaway Class A and Class B shares. While the arbitrage opportunity was reduced significantly by February 26, it has re-emerged again more recently. Forced selling by charitable foundations may be the cause. Read this post to learn more about this potential arbitrage opportunity.

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