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Old 11-04-2011, 07:10 PM
 
535 posts, read 543,742 times
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Buffett & Berkshire Hathaway Stock Holdings, A to L (BRK-B, BRK-A, AXP, BK, KO, CDCO, COP, COST, DG, XOM, GCI, GE, GSK, JNJ, KFT, LZ) - 24/7 Wall St.

Like cerial, 100 million shares here, 200 million shares there, pick a pony by his tail, how can a little guy win at stocks?


So from what I heard, Warren will be giving away most his fortune to the gates, so what if that requires selling a lot of his owned stock. How would selling 100 million shares affect the stock price?


My hypothesis is the stock price would go down quite sharply towards the middle and end of selling of the shares b.c there probably just isn't enough buyers to pay the market on over 100 million shares at 50 a pop. Unless the fed starts buying stock, you'd think the price per share would drop say from 50 at the beginning to about 18 or so at end in order for all the shares to be sold.


Yeah, I don't much about trading, but I think this makes sense. What you experts say?
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Old 11-04-2011, 08:07 PM
 
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Buffett and the Gates Charitable Trust have similar investment styles. They are in the game to make money. I think there are more pertinent things to worry about in our economy that will affect stock valuations and prices. Buffett's purchase of BAC failed to move the stock. I see no reason selling blocks of shares would do that either. YMMV.
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Old 11-05-2011, 02:46 PM
 
Location: Houston, TX
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Stocks priced on demand...more demand, higher price.
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Old 11-05-2011, 02:56 PM
 
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usually the big players look for structured private deals so they can sell without tanking the stock.

when the likes of carl icahn wants to take a big position or sell a stake he usually goes to companies that make markets in that stock to find a buyer or a seller.

they rarely just push the sell button like we do,.
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Old 11-05-2011, 10:08 PM
 
Location: Wisconsin
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The trades are done incrementally in an orderly manner over time so as not to disrupt the market and cause the stock to lose value. It is certainly not in the interests of whomever owns the stock to have the shares lose value.

Same with buying large positions. Done incrementally over a period of time so as not to artificially drive up the price.

Or, like mathjak says, go to the market makers and find a buyer or buyers.
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Old 11-08-2011, 03:42 PM
 
12,343 posts, read 17,216,532 times
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Quote:
Originally Posted by iamnotwhoyouthinkiam View Post
Buffett & Berkshire Hathaway Stock Holdings, A to L (BRK-B, BRK-A, AXP, BK, KO, CDCO, COP, COST, DG, XOM, GCI, GE, GSK, JNJ, KFT, LZ) - 24/7 Wall St.

Like cerial, 100 million shares here, 200 million shares there, pick a pony by his tail, how can a little guy win at stocks?
So from what I heard, Warren will be giving away most his fortune to the gates, so what if that requires selling a lot of his owned stock. How would selling 100 million shares affect the stock price?
My hypothesis is the stock price would go down quite sharply towards the middle and end of selling of the shares b.c there probably just isn't enough buyers to pay the market on over 100 million shares at 50 a pop. Unless the fed starts buying stock, you'd think the price per share would drop say from 50 at the beginning to about 18 or so at end in order for all the shares to be sold. What you experts say?
Which Berkshire shares has Mr. Buffet been selling?
The A or B?
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Old 11-08-2011, 03:54 PM
 
12,343 posts, read 17,216,532 times
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There are less than 2 million Berkshire shares.
He can not sell a million shares.
His A shares are worth $117,000.00 per share so he could sell 10 shares and that is $1.17 Million.
Very easy for him to sell a little here and there.
He just invested $5 Billion into Bank of America.
So, he buys and sells alot of things.


Can you name another stock that has far more outstanding shares?
It would be easier to explain how selling can affect the stock price.
An example is Microsoft. It trades an average of 62 million shares a day.
There are very few stocks that trade 100 million a day, if any.

All CEO's like Michael Dell and Bill Gates, etc. sell shares all the time.
They have the same right to sell at a profit, as we do.
They sell as part of their retirement strategy.

The only way a stock can go down 1 penny in price, is if there is someone wanting to buy at the lower price. If there is not, it will fall another penny, and keep falling until it finds a buyer.
For every share that is sold, a share is bought.

Conversely, a stock can not go up a penny, unless there is someone willing to sell at the higher price.

The price stays where it is, until the seller's are willing to take less, or the buyers are willing to pay more.
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Old 12-03-2012, 01:11 PM
 
2,167 posts, read 1,757,651 times
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Default Rogue Algorithms

Quote:
Originally Posted by howard555 View Post
Conversely, a stock can not go up a penny, unless there is someone willing to sell at the higher price ...

The price stays where it is, until the seller's are willing to take less, or the buyers are willing to pay more.

Nightly news, the day's stock report; cue the musical tune - happy or dismal depending whether stocks went up or down; cue, center and focus in on a stock trader wearing a cloth jacket either grimacing or looking professionally optimistic.

Would you be surprised to learn that one half of the volume that day was done through electronic program trading using algorithms to trigger trades in that and other exchanges in microseconds. This computer activity is beyond the ability of a trader to comprehend. At least in this part of the stock market what a willing seller and a willing buyer do literally does not compute. Does it affect (effect?) the rest of the market? Yep.
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Old 12-03-2012, 01:32 PM
 
Location: Sunnyside
2,008 posts, read 4,338,282 times
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Quote:
Originally Posted by iamnotwhoyouthinkiam View Post
Buffett & Berkshire Hathaway Stock Holdings, A to L (BRK-B, BRK-A, AXP, BK, KO, CDCO, COP, COST, DG, XOM, GCI, GE, GSK, JNJ, KFT, LZ) - 24/7 Wall St.

Like cerial, 100 million shares here, 200 million shares there, pick a pony by his tail, how can a little guy win at stocks?


So from what I heard, Warren will be giving away most his fortune to the gates, so what if that requires selling a lot of his owned stock. How would selling 100 million shares affect the stock price?


My hypothesis is the stock price would go down quite sharply towards the middle and end of selling of the shares b.c there probably just isn't enough buyers to pay the market on over 100 million shares at 50 a pop. Unless the fed starts buying stock, you'd think the price per share would drop say from 50 at the beginning to about 18 or so at end in order for all the shares to be sold.


Yeah, I don't much about trading, but I think this makes sense. What you experts say?
Nothing should really happen if it does in an effective manner.
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Old 12-03-2012, 05:02 PM
 
Location: TX
795 posts, read 1,304,141 times
Reputation: 784
Buffett's shares are being gifted to the Gates Foundation, not sold. Big difference. The transfer does not go through the stock exchange and therefore will have no effect on price whatsoever. He negotiates with them in private just the number of shares - not the price - and his custodian performs the clearing and transfer of shares to the foundation's endowment. It's a donation, so no money trades hands.
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