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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: mungofitch 🐝🐝🐝 GOLD
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Number: of 21943 
Subject: Re: BRK Upside Catalyst
Date: 08/07/24 12:29 PM
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No. of Recommendations: 20
There may be merit in much of what you say.

I might not expect this one though:
I think you could see some of the unimportant retail and services business sold.

It does make sense to sell or close those that are losing money and are without a solid prospect of making money soon without additional capital infusions.
But merely low returns can probably be supported indefinitely.

My reasoning is that the units involved are generally so small that the benefit from the financial resources freed up would not be worth as much as the "good will" of keeping them, since that good will is a help when negotiating private acquisitions.

Nobody cares if Berkshire has a small amount of very-low-return capital tied up in something like (say) Pampered Chef, other than the next person who might sell such a business to Berkshire. (I have no idea if Pampered Chef is doing well or not, it's just a for-instance)

Jim
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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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