No. of Recommendations: 1
after getting the runaround by AI, am pondering here.
unless in a crisis, i proposes that BH will have to pay massive control premiums for deals that move the needle (>$100b).
this is because of :
a. the highly visible cash hoard
b. loss of good stewardship discount as warren fades away
we are seeing this in small deals, but i think big deal premiums will have to be MUCH larger...and wont be done, even if a toehold is in place. not even looking at shrinking target list and regulatory issues.
and thus it is more likely that BH will perpetually sit on inflation-eaten cash , even if squeezing out a decent dividend.
(saying this as a fan of greg abel)
very interested in longterm experts here taking a stab, numbers-wise.
(on a sidenote, i consider brookfield, who doesnt mind being an operator and has much less cash. their typical deal is ~$10b, but are built to do MANY of these with 5-10yr turnover)
