"A question for the deep critical thinkers not the usual suspects. The question of the day is, IF brk had declared a 1 % dividend would the stock have held 415- 420, as a result of increased demand from new buyers ? Thank you."

I'll take a shot at it.... Whatever bounce the stock would get from an announcement would likely dissipate fairly quickly. With that said, I do think there is a sweet spot in there for when this company converts into a dividend stock. It's obviously not a new question and Warren has talked about it many times. He has said that it's likely Berkshire will pay a dividend eventually but that he A) thinks we can achieve more growth through other capital deployment and B) doesn't want to burden shareholders with tax consequences. I agree with him and and so do the majority of shareholders.

Now regarding that "sweet spot" I think it comes at a time where he (or Greg) feel the company is fully valued and there aren't many long term big opportunities. As a conglomerate Berkshire perpetually sells at a discount. Even after this latest runup. It's just that we're so used to it being stodgy with price growth that it feels like it's gotten expensive but compared to the rest of the market it most definitely is not. I know you won't like this but I trust management to do what's right regarding a dividend policy. I've owned the stock since 2001 and it's served me well. I know they put shareholders first so why would I doubt their ability to make a decision on such an important thing?

Berkshire Hathaway FAQ

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