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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: Silverlinin   😊 😞
Number: of 21944 
Subject: Re: BRK's value post Buffett
Date: 01/28/25 8:23 PM
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No. of Recommendations: 18
Hello ZiggyD,
I understand, respect and appreciate your thoughts, especially regarding “few who can create value by combining…candies and railroads like Buffett.”

Here are the “nuts” I can’t crack.

The break up of Berkshire Hathaway could trigger significant tax liabilities. The company holds substantial unrealized capital gains in its stock portfolio and a breakup could trigger a taxable event. Additionally, selling off individual subsidiaries could result in capital gains taxes for the company.

The synergy created by Berkshire's Insurance operations provide a steady flow of capital for acquisitions and investments, while subsidiaries like BNSF Railway and Berkshire Hathaway Energy generate stable cash flows. Breaking up Berkshire could disrupt these synergies and expose individual businesses to greater market volatility.

Buffett and his team have been actively involved in succession planning, grooming a new generation of leaders within the company. Greg and Ajit seem to me to be very capable.

I dunno, ZiggyD. While a BRK breakup is not impossible the (breakup) stars would need to align: mkt dynamics, poor post Buffett leadership, the BRK Board and the larger shareholders to grease the BRK breakup skids.

Perpetual Wealth and Health to you and yours, ZiggyD.
Silverlinin

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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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