Now
Fair
23°
High
32°
Low
18°
Full Forecast

Jobs

Cars

Homes

Rentals

Alerts

Subscribe
Home > News > Business
Bookmark Us   •   Make Us Your Homepage

Berkshire’s No. 2 sells 2,000 shares to family

Comments 11 comment(s)  
E-mail Story E-mail Story
Print Story Print Story
Share  Share
Text Size: 
Tools Sponsor

By JOSH FUNK / The Associated Press

Friday, Nov 21, 2008 - 06:15:17 pm CST

OMAHA — Berkshire Hathaway Inc. Vice Chairman Charlie Munger has sold 2,000 of his shares of company stock to family members in exchange for an IOU.

The Pasadena, Calif., billionaire disclosed the sale of Class A shares Friday in a filing with the Securities and Exchange Commission.

The filing said Munger completed the private sale Thursday by accepting a promissory note for $77,500 a share from family members.

Berkshire’s Class A shares, which are the most-expensive U.S. stock, closed at $90,000 Friday.

After the sale, Munger still owned 13,181 Class A shares of the Omaha-based company. Berkshire CEO Warren Buffett said he consults Munger on every major move the company makes.

 


$1 Sunday Delivery - Subscribe Today!
Business > Back to Top of Story

Post Your Comment

Standards and Rules
All posts to JournalStar.com are subject to our Terms and Standards.
Your posted comment will appear after it has been approved.
Frequently asked questions about story commenting.
(optional)
   
Hide Comments Hide Comments   Newest First Newest First  
whatever wrote on November 21, 2008 8:45 pm:
" Interesting. "

 GEO wrote on November 21, 2008 10:15 pm:
" I wonder how Mr. Munger would feel if he knew Rocky Mountian Power is electrocuting dozens of golden eagles on power lines owned by Warren Buffett, in N.W. Wyoming???? Little is being done to prevent the deaths, a band aid approach is being implemented. The USF&W is investigating! "

 look deeper wrote on November 22, 2008 12:13 am:
" This is a very interesting "gift" which could be a forshadowment of things to come. Why give 180 million to family and then have them IOU? Maybe Charlie is sick and the number two in Berkshire's family could be trying to avoid the taxes that his family would pay in inheritance. Smart move from a smart business man. Although, if this is true, it could pose a problem for investors, as the stock surely will fall if he is indeed ill. "

 derek wrote on November 22, 2008 2:33 am:
" what a joke...gave shares be worth half that in 5 months "

 Geo wrote on November 22, 2008 7:17 am:
" Wow. "

 Marjorie Molina wrote on November 22, 2008 7:30 am:
" GEO, haven't you seen the recent USF &W study showing golden eagles have been proliferating like lice? Electrocuting off some of the surplus sounds like a positive. "

 tom wrote on November 22, 2008 9:04 am:
" a visit to Wyoming two years ago i spotted my first eagle ever that was not in captivity what a sight it was how it just stood out after seeing that sight i finally understood why the eagle was chosen as one of the symbols for the U.S. "

 Larry wrote on November 22, 2008 9:31 am:
" Why would he sell shares to his family via an IOU? I'd bet it's tricky way of avoiding taxes? Anyone know how this works? There's so many ways for the rich to keep their money from the tax man while the poor get none of those perks. "

 me wrote on November 22, 2008 10:36 am:
" I'd love to know where his is going to put that $155,000,000. GM or Ford maybe? "

 me wrote on November 22, 2008 11:33 am:
" yes, i'm sure everyone is right. it's a tax scam for sure. "

 To Larry wrote on November 22, 2008 6:33 pm:
" Munger probably has it set up like he loaned each person the money to buy the share. Then, they have to pay him back in installments. Those installment amounts likely fall below the annual exclusion for the gift tax (which is $12K per year). Then, he forgives the payment and considers it a gift. Anyone can do this, but it's best to consult legal counsel to structure it properly.

Note: this is perfectly legal. And you and your spouse can each give 12K (so the installment could be around 24K per year). "

Ads by Yahoo!