There is rampant speculation this morning after Berkshire Hathaway(BRKA) announced it had repurchased 9200 class A shares from “the estate of a long-time shareholder”. Many are reporting, irresponsibly, in our opinion, that the stake comes from David Gottesman. This makes no sense to us for two reasons. First, Mr. Gottesman, being very much alive, has no estate. Secondly, as a Director of Berkshire, Mr. Gottesman and the company would be required to disclose.
We have done some sleuthing, and believe that the source of the shares was Albert Ueltshci. Ueltshci, who died in October at the age of 95, received 16,256 shares when he sold FlightSafety International to Berkshire in 1996. He had recently signed Buffett’s Giving Pledge as well. Ueltshci who borrowed $3500 to buy his first plane and sold flights for $1, was Pan Am founder Juan Trippe’s personal pilot and started FlightSafety on the side, with Trippe’s backing and support.
In any event, the price that Buffett paid, 120% of book value, is leading others to conclude that the stock is undervalued, pushing up the price today on the news.
Disclosure: The author owns class B shares of Berkshire Hathaway
- Omaha Hold ‘Em: Going All-In On Berkshire Hathaway (seekingalpha.com)
- Berkshire Hathaway Makes Major Investment Deal With CaixaBank (valuewalk.com)