I'm fine with it as long as it's a fairly small one. The strength of this company is that it's still earning strong rates on it's invested capital but it is getting harder to deploy. The utility segment is interesting to me, where else can you consistently retain all your earnings and get regulated returns of 11-12%.
Buffets done a pretty good job in preparing for his eventual departure, the investment portfolio and even insurance has become far less relevant as the non insurance businesses are generating the bulk of the value, $11 billion a year
Good morning, hc, because I refuse to register I can't read the second page.
IMO, the question should be answered by shareholder vote. I doubt that it would ever pass and I'm OK with that. If you don't like what BRK does, don't buy it, buy something that works for you instead, I have.
The only point I want to make is, BRK could actually be valued with some degree of confidence if it paid a regular dividend and raised it annually at a credible rate. And share reductions via buybacks (at a sensible price) would suddenly not only make sense, but could be viewed as a positive.
By the way, did you see, Gross's 22Dec2013 tweet?
« Gross: Stocks have their own QE: “corp buybacks” at $500 billion a year. They are a main reason stocks go up. When do THEY taper? »
"They are a main reason stocks go up. When do THEY taper?" Given the accuracy of HC's reasoning, that will happen right after the insiders have more money than they can think about.
On the other hand, the MAIN reasons stocks go "up" or "down" is cash in/out flows to the ticker, the index, the broad mkt. That's why the talking heads all scream at everyone to never sell..never time,...always buy and hold... just like Jordan Belfort told all his clients, and WB tells all of his.
jad, does iCON pushing for buybacks create JOBS ? Do super low interest rates which allows aapl to borrow at 3 % to buyback stock, create jobs ? does IBM buying back, create jobs ? it makes the rich and super rich richer, keeps the middle and low income down, which creates loyal dems for life, its brilliant. until the gop finds a few people who passed common sense 101 to run the party this nov will be the very last time in my lifetime to take the senate. I figure they will blow 2 seats they should have won and the dems hold the senate 51-49. If, HUGE IF, it continues to go to sheet, the gop takes the senate 51-49, even idiot savants cant blow this lay up. HUGE rally in bond funds last week, go figure ?