The following is my
answer to a Quora question: “When Berkshire Hathaway buys shares
of a company, what kind of a broker does it use?”
A company that size and reputation does
not need to use brokers. They are not
just buying shares, but stakes. That
means they have a legal team negotiating a special price, and a package, and
may even demand a seat on the board. Companies
would normally welcome their participation and may even offer discounts and
incentives because they have much more to gain. The mere fact that Berkshire Hathaway bought a
stake would raise their profile, and there would be a sudden interest in their
stock. This will cause the stock price
to rise, which immediately increases their market capitalisation. Also, having such a company as a shareholder
opens doors, making it easier to leverage the stock, to get loans and
concessions from creditors.
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