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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: hclasvegas   😊 😞
Number: of 21943 
Subject: Re: brk, increasing demand for the common
Date: 05/12/26 6:32 AM
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From an old friend and longtime brkb owner who responded to my post.

"$1/B share would amount to a little more than a $8B annual dividend for Berkshire, less than a quarter of normalized net operating earnings, so this would be almost a symbolic move and wouldn’t even make a dent in annual cash inflows much less the massive accumulated cash pile. At current prices, I’d rather see a big increase in repurchases. If you’re right about a $1 dividend increasing demand for the stock, that would likely halt repurchases. If Buffett agrees to do it, I don’t see why Berkshire can’t deploy $20-30 billion toward repurchases this year. Arguably a better move than a small dividend right now, at current prices, imo."

To be VERY CLEAR, I never said initiate a small div and stop the buybacks, brk can do both like 100s of other public companies, like apple.

IF, IF, Buffett had shown a serious interest in buying back brkb in size since 2006 I wouldn't be pounding the table to initiate the small div.

So, brkb can afford to pay out 8 billion a year in a div AND do 20 billion in buybacks price permitting annually.

IF, the markets believed this would be the minimum cap allocation plan going forward ,brkb rises 5 % or so, today.

To be clear, brkb will not pay a div in Buffett's lifetime imo, this requires patience.

Before I forget, brkb has around 70 wholly owned subs. Greg should do a deep dive with a forensic accountant into everyone the next two years.

Due to easy access to gaming sites, drugs, drinking, improper relationships etc, I would love to bet uncle warren a million dollar's Greg finds, serious misconduct in at least 5 % of the companies, and I'm being very conservative to make sure I win the bet.

Marc make this happen, a friendly wager between me and my American Idol! I'll even agree to give 10 % of my win to Buffett's favorite charity! Thank you.

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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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