The Shocking Reason You Missed Berkshire Hathaway Inc. (BRK.A)’s Bull Run

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What should you do?
If you want to get full exposure to companies with high insider ownership, you have a couple of choices. You can buy additional shares of the individual companies you’re interested in, manually adjusting for the shortfall within your index ETF to give yourself the allocation you see as proper.

Another alternative is to use index funds that use other metrics than market cap. With equal-weight ETFs and fundamentally weighted funds that use weightings based on things like earnings or dividends, you won’t face the float-adjustment factor.

Either way, being aware of the problem is the key to taking smart action. Even if the impact is minimal, knowing about unusual things like the float-adjustment rule will let you address it if you think action is warranted.

The article The Shocking Reason You Missed Berkshire’s Bull Run originally appeared on Fool.com.

Fool contributor Dan Caplinger owns shares of Berkshire Hathaway. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Amazon.com, Berkshire Hathaway, and Visa. The Motley Fool owns shares of Amazon.com, Berkshire Hathaway, and Oracle.

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