In an unusual move, the spouse of a Berkshire Hathaway board member has sold shares they owned in the holding company run by Warren Buffett.
Meryl Witmer is a highly regarded and long-term director at Berkshire Hathaway. She has served on the company’s board since 2013. An investment fund manager, Witmer is known as a classic value investor in the same mold as Buffett himself.
Witmer’s husband, Charles Witmer, sold two Berkshire Hathaway Class A shares on March 3 near their recent all-time high. The two Class A shares were sold for nearly $776,000 apiece, for proceeds of $1.55 million, according to a filing with the U.S. Securities and Exchange Commission (SEC). The two shares that were sold were held in an individual retirement account.
Never Sell
The sale of the stock is unusual because Buffett and members of Berkshire Hathaway’s board are known for holding the company’s Class A and more affordable Class B stock for the long haul. Buffett has famously said that he has never sold a single share of Berkshire stock, although he has gifted shares to charitable organizations over the years.
Meryl Witmer owns 11 Class A shares of Berkshire Hathaway stock and 2,000 Class B shares. Her stock holdings are held in a trust for members of her family. Following his recent sale, Charles Witmer now owns two Berkshire Class A shares in his individual retirement account.
Witmer boosted her stake in Berkshire Hathaway in May 2020 near the pandemic low when the stock traded for just 1.1 times book value. The stock now trades for close to 1.7 times book value, its highest level in a decade. Berkshire’s Class B stock has risen 24% over the last 12 months.
Is BRK.B Stock a Buy?
Berkshire Hathaway’s Class B stock currently has a Moderate Buy rating based on one Buy recommendation issued in the past three months. The average BRK.B price target of $557 implies 12.05% upside from current levels.
