Buying the ‘B’ Share (Oct 2007 Progress Report)

As I described in an earlier post, one of my financial goals is to buy a single B share of Berkshire Hathaway (BRK.B). Berkshire Hathaway is run by Warren Buffett, and I think it is a great alternative to a large cap mutual fund.

As part of my goal, I’ve committed to saving for the B share only through income I generate from this blog or other passive sources. In other words, I won’t use any of my income from my day job or from savings to buy the B share. Why am I limiting myself in this way? Because I want to show myself (and you) that small, incremental savings can make a huge difference given enough time. I want to see if saving a few bucks at a time can really make a difference. I believe it can (actually I know it can), but seeing is believing.

So where do I stand? Well, you’ll see I’ve added a progress bar in the right sidebar to track my goal. Through October 31, 2007, I’ve saved $395, or about 9%, toward my goal. Here is where the money came from:

  • $0.35 (check from my insurance company)
  • $13.08 (loose change and interest earned)
  • $345.67 (blogging income–I’ll write more about this later)
  • $36.35 (refund checks, another $0.35 check from my insurance company)

This brings my total to $395.45! I’ll update my progress bar as new money comes in and as the price of the B share changes (this is where a drop in share price would be really great!), and then update this post at the end of each month.

Update: The progress bar has been taken down because I’ve reached my goal! Check out this post on buying partial shares of stock.

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10 Responses to “Buying the ‘B’ Share (Oct 2007 Progress Report)”

  1. A B share is one of my goals, too, except that I am going to buy it though regular investment in a Roth IRA. With all the gains the share will make, why would I want to pay taxes on it? ; – D

    It will be fun to check out your website in the months to come to see how quickly you reach your goal!

  2. Speedy, thanks for the comment and good luck with the B share. Interesting point on the taxes. Buffett is not one to pay dividends, although I think the day is coming when his return on equity will diminish, causing him to pay a dividend, but you never know.

  3. shawnchong

    DR, you should consider putting up a PayPal donations link somewhere on your homepage! It’ll add substantially to your blogging income. I know I’d donate $1 to you for the content I’ve read on your page.

  4. BTGNow.net

    I had this idea too, though I planned to simply invest a huge chunk of my income from an upcoming work contract. Just a question after reading one of your other posts: by owning fractional shares, are you still considered an “owner”? Or wold you be 1/5th of an owner, or whatever?

    • BTGNow, you are considered an owner even with fractional shares, and I could have attended the Berkshire Hathaway annual stockholders’ meeting this year, although my schedule didn’t work out. Maybe next year!

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