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response to these consequences, Berkshire effected a recapitalization by creating a new class of stock, called the Class B shares, and sold it to the public. The Class B shares have 1,500th the rights of the existing Class A shares, except with respect to voting rights they have 1/10,000th of those of the A shares. Accordingly, the Class B shares should (and do) trade somewhere in the vicinity of 1/1,500th of the market price of the Class A shares.
The Essays of Warren Buffett: Lessons for Corporate America
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