Berkshire Hathaway (BRK)

[Kerim]

I know it is not a dividend growth stock, but I'd love to hear opinions about Berkshire Hathaway (in my case, the only ticker that applies is BRK-B).

I picked up a small position on the recent dip below $140, but I am tempted to pick up a whole lot more. It is just such an incredible collection of businesses, generating such huge profits, trading at such a fair valuation (I think).

I get especially excited when I read Tim MacAleenan's articles on the subject. His vision of BRK eventually paying a giant dividend or rewarding shareholders with huge spinoffs is intriguing. From yesterday's article:

Quote:I’m also becoming further convinced that people owning Berkshire for 10+ years will eventually see massive dividends, buybacks, and/or stock spinoffs unlike anything else the investment world has ever seen (it would look like the AT&T divestitures of yore without the massive debt attached to the balance sheets.)

And here are two other articles from him in the past year making the case further:

Berkshire Hathaway: Breaking The Traditional Rules Of Income Investing

My Recommendation: Look To Berkshire Hathaway

I also wonder if there will be a great buying opportunity when Buffett dies or steps down.

What do you all think of this? Any BRK fans or haters here?

[rapidacid]

I agree. Tim's articles on BRK always get me going. I have to admit I don't know much about the structure of the company and the A shares vs the B shares.

I'm still not exactly sure why he thinks it's inevitable there will be a dividend other than he thinks they'll have too much cash on hand and not enough value buying opportunities?

[Roadmap2Retire]

I have read many authors speculate about dividends from BRK and Tim is no different. I just see that as wishful thinking -- it will all depend on Buffett's replacement and whether they will cave to such calls for dividends and buybacks instead of investing the cash. Dont get me wrong, I would love to see some dividends from BRK and that would make my decision a lot easier in investing.

I dont own any BRK at the moment and will be looking to initiate a position during the next recession/financial crash.