Warren Buffett explains the rationale behind issuing preferred stock

Toggle fullscreen Fullscreen button


the second item of business of this

meeting is to consider the

recommendation for directors to amend

the company certificate of incorporation

the proposed amendment would add a

provision to the certificate of

incorporation authorizing the board of

directors to issue up to 1 million

shares of preferred stock in one or more

series with such preferences limitations

and relative rights as the board of

directors may determine now we discussed

this some in the in the annual report

but I would say and we'll find out the

exact number but I think we probably had

11 or 12 maybe 12 thousand or so shares

voted against the proposal I think we

had a couple thousand shares that I

abstained and since there really is no

downside to the proposal that indicated

to me that that I had not done a very