Warren Buffett, the CEO of Berkshire Hathaway, said at the 1996 annual meeting that the intended purpose of Class B shares was made to match the demand for those shares, and was aimed to prevent false inducements. Additionally, unequal voting shares are created so that owners of the company do not have to give up control, but can still tap into the public equity market for financing. Furthermore, the price of the new Class B shares attracted many small investors, whilst making Berkshire accessible to the people with modest amounts of capital. Additionally, his intention was to market Class B shares as a type of long-term investment to prevent prices from fluctuating from supply concerns. Mr Buffett also refused to a stock split and claimed that the high price of Class A shares created an intentional barrier to entry. He added that the company wishes to attract investment-oriented shareholders with long-term horizons.
