No. of Recommendations: 10
Interesting WEB put in writing that a Bs may be a “better buy” if they trade at a >1% discount to the As. I wonder how WEB and CTM originally arrived at an A has nearly 7x the Voting power of 1500 Bs. I understand the logic, just wondering how they decided upon that ratio/disparity between the A vs. 1500B voting power.
I never thought of that.
I can only surmise that he felt it was [just] enough of a difference to keep the bulk of aggregate voting power among the committed long term holders, the A share folks. Including, but far from exclusively, himself. And without going to the extreme of having any non-voting shares, which might be seen as unseemly.
He was probably also thinking ahead to the issue of gradually giving away his fortune without giving away too much voting control too soon, which required that the voting power ratio be fairly significant. His vote fraction has barely budged since the B shares were introduced because of A-to-B conversions by him and by others.
Jim
