IB and BRK.a

Discussion in 'Retail Brokers' started by ktm, Jun 12, 2002.

  1. ktm

    ktm

    I've read the rules about 100 share lots with IB and the NYSE. I am interested in getting a few of the 'a' shares but cannot afford 100. Has anyone traded BRK.a thru IB?

    Does IB have an exception for this or other very high priced stocks?

    Thanks
     
  2. alanm

    alanm

    You don't feel like ponying up the $7M, huh? :)

    I tried to buy 1 share (which I have enough margin for :) ) and got the "NYSE odd-lot restriction message". On the tape for both BRK.a and BRK.b, I see that the prints are always in multiples of 10 shares (instead of the usual 100), so it's possible that a round-lot is supposed to be 10 shares for these stocks.

    You might try placing an order for 10 BRK.b to see if it works (I didn't think of this until after the system was down). If not, you might consider asking IB about this, since there does seem to be a "minimum size" field in their database, as evidenced by the new "Details..." feature in TWS. Unfortunately, that feature doesn't seem to work for either BRK.a or BRK.b.

    BTW, I kind of liked the Buffett interviews, too. Makes you want to put your money with him :)
     
  3. ktm

    ktm

    Thanks alanm

    I've followed him for years. He is not only one of the most successful investors of all time, he is incredibly sensible and down to earth. I wouldn't put all of my money with him, but I would like to add his stock to my portfolio.
     
  4. Babak

    Babak

    The problem with WB is that success has ruined him. If you read his latest annual report letter he basically says we are too big for any one great transaction to have a significant impact on our total performance. BRK needs either a couple of really big transactions or a string of continuous accretive ones. Neither is on the horizon based on WB himself.

    If you have a time machine go back to the 60's and invest with him....or better yet George Soros.
     
  5. ktm

    ktm

    WB always likes to undershoot. He's been making those statements for years and continues to outperform. I think he feels more obligated now that he has so many more shareholders from the acquisitions.

    The problem with his ability to perform is that he doesn't feel he can buy the businesses at sufficient sale prices to return his customary 30% per annum. There's only so many places you can dump billions plus the 100M per week he claims to get as FCF from the BRK businesses. He's also in so many (understandable to him) industries that he would almost have to start competing against himself if he bought certain attractive assets. From his many comments, he would rather have competitive advantage from the top spot rather than attain it through acquisition; like MSFT in certain areas. He will almost certainly have to diversify beyond his durables/cyclicals and insurance holdings if he is to continue the remarkable run.