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Berkshire Hathaway Inc. Message Board

  • oregondirect oregondirect May 23, 2013 4:58 AM Flag

    What is all the fuss about Warren Buffet having an eventual successor?

    Berkshire Hathaway earnings are substantial enough to pay a 2 -3 percent dividend and reinvest a substantial amount of money in the on going company. With an actual dividend the price at which the shares trade can be higher to compete with other issues paying a similar dividend on the exchanges. The company is composed of self sustaining businesses that might actually be worth more broken up than kept together and once Warren is gone clearly who ever is in charge is going to be trained by Warren and who ever it is will ask the board "What would Warren do?" in every decision making process. If Warren were to suddenly be no more the vultures on wall street would be swooping in and buying on any sign of panic at the same time they were trying to created conditions of panic selling. Fortunately for the company the holders are not easy to panic and large shareowners including the bill and malinda gates trust are just going to go on holding. I am sick of hearing about the impending panic and ruin that would occur if Warren buffet quits as CEO or passes away because there is more than a 50 percent chance that the shares could become worth more just because the company could start paying out a substantial dividend to lock the perceived value in place or the company could be worth extraordinarily more if in the worst case it was liquidated piece by piece with the funds going to shareholders. That is incredibly unlikely. I like the Choice of Warren's farmer son as some one that will keep the family name in the Board Room. Everyone at the company is a buffetolgist. The panic selling scenario is possible but most likely complete nonsense. Oh and one more really extraordinary thing has to be considered. Unlike a company like Wal-Mart where 3 family members own substantial shares in the company and might be forced to sell if one passed away to pay taxes, Warren Buffet seems to have structured Berkshire to have non profit trusts just step in and remain the same.

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