Subject: Re: Some Thoughts - Maybe Too Many
BRK will do what's best for "life long" shareholders. If BRK stock trades at a reasonable price, the company would rather buyback their stock than issue a dividend.

If indeed there is a future dividend, I think the board would have no hesitation to declare a stock dividend to existing shareholders if that means a more tax efficient return of capital.


I like this point. If Berkshire shares are trading at a price below intrinsic value, Berkshire should use its excess cash to repurchase shares.

If the shares are trading above intrinsic value, and they figure they can't use the cash, then they should use extra cash to pay a dividend, but ideally allowing shareholders the option of getting a non-taxable stock dividend instead. For investors who elected that option, that wouldn't help with getting rid of cash, but it would be issuing shares above intrinsic value anyways, so in principle, Berkshire should not be opposed to that.

Go with the flow. Buy shares when they are cheap, pay a dividend and issue shares when they are expensive. Seems quite Buffett-like.

DTB