02-01-2019, 09:59 AM
(02-01-2019, 09:49 AM)DividendGarden Wrote:(01-31-2019, 09:04 PM)fenders53 Wrote: Anyone have any thoughts on GOOG? I can't even take FB serious anymore with all their recent amateurish errors. Yeah I did see their blow out quarter lol. They are an advertising machine until somebody displaces their social media dominance.
GOOGL and BRK are the only non-dividend paying companies that I own. I think that eventually, both of them will become dividend payers.
I think BRK will do so very quickly after Warren Buffett dies. There will probably be a large, irrational spike down in stock price immediately after that happens, which would be silly, but that's how the market works sometimes. Berkshire has done an amazing job of assembling a financial/industrial conglomerate, consisting of quality companies with stable and good management, who will continue to deliver returns as they always have. I do think the aura of Buffett disappearing will force the organization to pay a dividend, though. Matching or underperforming the S&P 500 as a mature conglomerate kinda calls for it. Investors are likely to feel that a return of some share of the profits is needed to offset the risk that the Oracle won't be redeploying the profits anymore (regardless of whether he has been the main driver of several decisions by BRK over the past decade).