Subject: Re: Numbers
Retained cash is Capital. Capital needs to be productively deployed. My expectation is at least 10% annual. Earning 4% or less for multiple years raises the hurdle rate when it is eventually deployed. So 4% for a few years means 11%+ when finally deployed. That is a high hurdle. Maybe impossible with so much capital in the world chasing ideas. I love Berkshire the company. It throws off tons of cash. But BRK may no longer be a viable place for redeploying it. I may be wrong, but why not start with a small dividend just in case I am right. This doesn't make me a villain. Just trying to look at the whole picture. Holding on to cash that can't be effectively deployed to avoid taxes is a bad financial decision.