Warren Buffett is the most famous investor on the planet, but he hardly lives like one. He still lives in the same house he bought decades ago. He’s only given his children a relatively small amount of money despite amassing a fortune. In fact, he’s giving away most of his fortune to charity and supports causes like the Bill and Melinda Gates Foundation.
In recent years, however, Buffett started holding contests surrounding the NCAA’s March Madness tournaments. As a fan of college sports, Buffett has kept a close eye on college basketball games for decades. Though he doesn’t support legalized sports betting and claims to not bet on games, Buffett still holds fantasy bracket tournaments in his organization. Last year, he upped the ante by offering a sweet reward to any one of his workers who could correctly guess the “Sweet Sixteen,” the sixteen remaining NCAA teams in the March Madness tournament.
This year, however, Buffet is going even further with his offer. For the hundreds of thousands of workers under the Berkshire Hathaway umbrella, it might be too good to pass up.
For the last few years, Warren Buffett offered his workers the chance to win $1 million for life.
All they had to do was accurately guess the “Sweet Sixteen” in the NCAA March Madness tournament. Entering Buffett’s companywide contest costs nothing to enter, and any worker from any one of Berkshire Hathaway’s subsidiaries ($BRK.A) is eligible.
This year, however, Buffett is sweetening the deal.
If a worker at Berkshire Hathaway correctly picks the first round winners of the March Madness tournament, they’ll walk away with $1 million. Additionally, the person with the most accurate team picks (or a “perfect bracket”) gets $100,000. This is in addition to the $1 million for life deal Buffett originally proposed.
There are over 360,000 employees at Berkshire Hathaway and its subsidiaries.
Berkshire Hathaway owns hundreds of companies, including Geico, Union Underwear (Fruit of the Loom), Dairy Queen, Oriental Trading, and Duracell, among many others. Buffett’s holding company is famous for buying undervalued companies that he then increases in value under Berkshire Hathaway’s management. Every worker at every company owned by Berkshire Hathaway is eligible for Buffett’s offer. Some subsidiaries are even offering their own March Madness contests, albeit on a much smaller scale.
Should you invest in Berkshire Hathaway? Berkshire Hathaway is known for taking undervalued companies and exponentially increasing their value. This led to Berkshire Hathaway’s stock making significant increases over the last twenty-plus years. If you bought one share of Class A stock in the company near the end of 2012 for around $130,000, your investment would be double its original value by now. ($BRK.A is currently trading at $261,900 a share).
Sure, $261,900 is a lot of money, but the company’s Class B stock has a much lower barrier of entry. It currently trades at $174.73 and pretty much mimics the gains and losses of the Class A stock. Both stocks have been more than successful for several decades. If you think Buffett’s stock will continue their success even after Buffett’s passing, do your research before buying the Class B stock.