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Berkshire Hathaway Inc. Message Board

  • ut48oiru2 ut48oiru2 Feb 16, 2013 1:47 PM Flag

    When Warren Dies...

    Do you think BH will start paying out dividends as a way to not only buffer the drop in price of the stack, but also acknowledge that his connections and street credibility allowed him, and ONLY, him to strike some of the best deals in the history of investing - deals probably no other individual will ever reproduce. Agree or disagree?

    Sentiment: Strong Buy

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    • At some point, yes they will likely pay a dividend... it won't be while Mr. Buffett is in charge. Bill Gates has indicated that at some point, the board will likely have to re-evaluate the dividend policy with an ever growing and accelerating cash flow.

      That said, when Mr. Buffett is no longer with us (hopefully a VERY long time from now), there will be a fight for the future of Berkshire. On the one side will be "guardians of the culture" that want the company to remain true to the empire that Warren built. This will be the dominant faction at first... but many of them will likely sell their shares if Warren is not there. The other faction will be what could be called 'Wall Street'... this group will see the ENORMOUS value that is locked up in Berkshire (remember what value was released to shareholders of the old Phillip Morris... ? Imagine that magnified by decades of Warren Buffett's obsession and talents building one of the most amazing corporate empires in the world. This Wall Street group will likely begin buying shares in the drop of long time investors evacuating after Mr. Buffett... and the fight will be on. Ajit Jain (if he is, as I expect, the next CEO) and Howard Buffett (assumably the next Chairman) will not have the extreme loyalty and trust that partners have in Warren Buffett. It will be a bit of a fight... the dividend may be used to placate Wall Street, but it could backfire as it will just draw in more investors that want cash now...

      How does that all turn out? I have no idea... it is hard to imagine that the Guardians of the Culture would not handily win such a vote early... and that Wall Street will eventually acquire enough shares to turn the tide. The potential wildcard is how many of the younger Buffett fans will hold on to that legacy, and what happens with the charities holdings.

      Sentiment: Strong Buy

    • If you want growth buy this stock If not go elsewhere!!!

    • nobleonetoo Feb 16, 2013 2:02 PM Flag

      I do not believe Buffett owned Companies will ever pay a dividend.! Well known Warren gets millions in dividends, but doubt the Co will ever pay back to investors. People say it would be a tax we would have to pay extra, but I and most investors would reinvest any dividends received.

      Sentiment: Hold

      • 1 Reply to nobleonetoo
      • I insist that the best way to increase wealth to the shareholders is by paying dividends by companies that are not high growth. Examples Coca Cola, Procter and Gamble, 3M, etc
        On the other handf , if you reinvest your dividends you still are subject to tax. Nevertheless paying taxes is a necessary cost when you build wealth. The only way to delay , not avoid, taxes is to keep your investments for a long time.


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