According to the SEC filing, Jain, who is one of Warren Buffett’s top lieutenants, sold 200 of his class A common stocks at an average of $695,418 per share, just days after Berkshire Hathaway hit the $1 trillion market cap.
The disposal means the long term executive is left with control of 166 such shares, 61 of which he directly owns, the report said further.
Another report by Moneycontrol said that the share sale is 54% of Jain’s total stake in Berkshire. Jain’s family trusts in his and spouse Indirma Jain’s name together hold 55 shares, with non-profit corporation Jain Foundation Inc in possession of 50 shares, the report said.
CNBC International quoted David Kass, Finance Professor at Robert H. Smith School of Business, University of Maryland, as saying, “This appears to be a signal that Ajit views Berkshire as being fully valued.”
Jain joined Berkshire Hathaway in 1986 to work on the conglomerate’s insurance operations, which include car insurer GEICO. Now, 72, he has been heading the insurance operations.Buffett has long praised Jain, saying in 2017 that he’s probably made more money for Berkshire than Buffett has. In 2018, Jain and Greg Abel were named vice chairmen of the firm, with Abel, who’s a decade younger than Jain, eventually being tapped as Buffett’s successor.
Investors have questioned whether Jain would stick around to help Abel run things once Buffett, now 94, leaves the firm.
