Old School Value

Dual Class Shares & K-Swiss (KSWS)

Recently I had an interesting discussion regarding dual class share structures and how it impacts a company's fundamentals and valuation. Now if a company had a dual class structure where they offered only class A shares to the public, the investing public who buys a stake in the business will only be entitled to a single vote compared to maybe 10 votes for a class B stock. In the case of Berkshire Hathaway, class B holders have 1/200th the voting power of class A shareholders.

Continue reading...