No. of Recommendations: 2
" If somebody A sells a bunch of stock to somebody B, that doesn't change what C and D and E think the stock is worth, other than during the few moments of the trade if A is selling at market. C and D and E are looking at how the business is doing (as well as a bunch of irrelevant stuff), and they are very very numerous, so it's their bids and asks that determine the market price.
The price of an A share today is within a few cents of being the same as it would be with or without selling by Mr Buffett or the foundations.
Jim"
Always appreciate you teaching how, it works old bud. Let's try something very simple. IF Buffett decides tonight that brkb is currently trading 20 percent above IV, and he files an 8 K disclosing that he will be gifting 150 BILLION worth of brkb to the foundations this Friday, with instructions to sell it all this year, how might the stock react to that news?
1- no harm no foul,
2- the stock may sell off a few cents,
3- the stock will rise because more supply in the float is bullish,
4- the stock might sell off more than a few cents because all those shares added to the float have to be absorbed by buyers.
As always, thanks for your reply.
