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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: rando   😊 😞
Number: of 21944 
Subject: Re: Brk, it's time to declare a 1$ quarterly
Date: 11/07/25 12:23 PM
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No. of Recommendations: 9
Maybe that's what BRK could do to satisfy those asking for dividends, split shares from 1 to 1.02 every year, and those want dividend could sell the 0.02 shares, those don't want dividend can keep the shares

This fundamentally misunderstands the argument for considering dividends. I do not think that Berkshire should consider dividends because I want to get something valuable in my mailbox. Rather, I think the company is retaining cash far in excess of any demonstrated need or ability to deploy it. Issuing stock dividends does absolutely nothing to address this concern. At this point, I am still probably in favor of repurchases over dividends (and would prefer attractive investments in operations to both), but if the company is unwilling to repurchase at current prices and is unwilling/unable to deploy the cash elsewhere, I am left thinking that dividends are becoming more appealing every day as simply the lesser of two evils.

For those who are opposed to a cash dividend in any respect, 2 questions:
- Given that you seem comfortable with Berkshire holding cash indefinitely waiting for the opportunity to deploy it at some future date, are you in favor of large stock issuances right now when Berkshire is (as evidenced by a complete lack of repurchase activity at prices anywhere near here) not demonstrably undervalued? If not, why not? Did Berkshire just happen to land at exactly the right level of cash to be holding for future opportunistic deployment?

- Is there a maximum time horizon that you would be comfortable watching consistent cash inflow be retained rather than deployed in expansion, acquisitions, or repurchases? If so, how long is that horizon?
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This community has written 21,448 posts about Berkshire Hathaway. The article-length ones it recommended most:
BRK: Why Not XOM? · 62 recs · 2024
Second quarter comments · 60 recs · 2023
Berkshire's Profit Contributors · 57 recs · 2023
Summary of 2Q 2026 · 54 recs · 2026
3Q Summary · 53 recs · 2024
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