Subject: Re: From the FT
“I expect Berkshire to establish about a 3% dividend when Warren passes. It would solve the excess cash flow problem while putting a floor on the stock price.”

Rationalwalk had a piece on dividends this week, and brought up an idea I hadn’t thought of. If Berkshire is cheap then buybacks are the sensible way of returning excess cash. But what if Berkshire is expensive, and for a long period? Unlikely, I know, but if it happened, dividends could make sense.

A dividend any time soon would really mess up my tax planning. I wouldn’t be the only one. On the other hand, Berkshire holding excess cash when there is, apparently, no real chance of deployment isn’t attractive, either.

I was surprised that there are no non-US companies on Berkshires radar. Are there really none big enough?