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In the case of BRK.B, the shares still have voting rights, unlike SNAP and GOOG (C). I've always been impressed that people would buy GOOG instead of GOOGL at
by ISL 9y ago
In the case of BRK.B, the shares still have voting rights, unlike SNAP and GOOG (C).
I've always been impressed that people would buy GOOG instead of GOOGL at such a small discount. 1.8% is not a lot to pay for voting rights.
- johannes1234321 9y agoWhat could you do with the voting rights? 51% of the votes are held by the two founders. Some more votes are held by people close to them (i.e. Eric Schmidt) This gives very little theoretical and even less practical worth to the votes, whereas the actual worth is benefiting from profits.
- jondubois 9y agoI guess the premium accounts for the eventuality of the founders selling their stock. Their shares will be sold eventually, whether in their lifetimes or after.
- johannes1234321 9y agoWhile introducing the C class of stocks they made clear that they don't plan to give up their majority any time soon (that's the whole reason the were introduced) thus that premium is far in the future.
- Blackthorn 9y agoYou don't have any voting rights when you buy GOOGL either, it's a complete fiction. The founders control 51% of the votes. If anything, it's impressive that GOOGL trades at a premium at all.
- prewett 9y agoYou absolutely get voting rights, you just don't get voting control. But there are three founders, so they have to vote together as a block to get that 51%. And over time, they may sell some of their voting stock.