1Wk·

First share of hopefully many

I took advantage of the small setback and added my very first $BRK.B (+0.9%) share into my portfolio. I'm delighted :)

05.05

Berkshire Hathaway (B)

Bought x1 at €453.55

€453.55

9 Comments

TotallyLost@TotallyLost

1Wk

Why buy 1x $BRK.B instead of 0.0006423303835 $BRK.A?

•

Epi@Epi

1Wk

@TotallyLost That's a VERY good question! 👍

••

value_seeker_402@value_seeker_402

1Wk

@TotallyLost 😂

••

TotallyLost@TotallyLost

1Wk

@value_seeker_402 @Epi This must really piss off the brokers who offer fractional shares.
You buy 0.0006423303835 $BRK.A and since they can only buy the share as a whole, they have to hold the rest.
...
How many crazy people will there be who hold parts of the A-share... will they even get to a whole share in Summer?

They can almost only be those who clicked on the wrong button when creating the savings plan. 🤣

•

Epi@Epi

1Wk

@TotallyLost Oh, I think the brokers cover that with derivatives. 🤷

••

Finanzielle-Freiheit@Finanzielle-Freiheit

1Wk

@Epi or they stock up on the B themselves 😂

•

Toni@ninni1972

1Wk

@TotallyLost the worst thing is that fractions of shares are not special assets....dh have fun if you have 0.5% of this share and your broker declares insolvency 😂

•

Brokémon@Brokemon

1Wk

@ninni1972 According to Finanzfluss (a reasonably reputable source):
Fractions are special assets!
Doesn't this automatically mean a higher risk for investors, who are therefore dependent on the broker? What happens if the broker goes bust? Trade Republic customers need not fear a total loss due to insolvency. Even if they do not acquire the fractional shares directly on the stock exchange, but from Trade Republic, they become co-owners, the company explains on request. This means that the shares are not only represented in the securities account, for example via derivatives. "The customer always receives real co-ownership of the shares in the collective portfolio via fractional shares," Trade Republic assures. The fractions - just like whole shares - count as special assets, i.e. they are held separately from the broker's capital and are therefore protected from access by an insolvency administrator. "In this respect, there are no differences to the safekeeping of entire files that are the sole property of a client."

•

Tobi@Tobiwankenobi500

1Wk

I also have it on my radar - but I think we'll see another setback soon :)

LG and good luck!

•