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The week's question
In March 2025, in the thread "Re: OT, out", Umm asked the members: "Do you think it is because America is made up of magical soil that makes businesses based in America magically profitable?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: hclasvegas   😊 😞
Number: of 22353 
Subject: brk, increasing demand for the common
Date: 05/11/26 7:25 AM
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No. of Recommendations: 4
First a short walk down memory lane. It took Buffett over 20 years to finally, authorize buybacks at " material discounts to IV".

For years not one poster agreed with me that brkb had to authorize a 50 for 1 split so that it would meet the requirements necessary to be eligible for many index funds.

First, he used a 1.1 xs BV limit which was embarrassing, he bought back very little stock.

Then he raised the limit to 1.2 xs BV and again, bought very little stock back.

Finally, the appropriate hurdle was used, better late than never.

The SPY currently yields about 1 %. SPY is very overweight Mag 8 type stocks which are not appealing to brk type investors.

THIS is the appropriate time for brkb to pay a 1$$ quarterly div to yield a bit below 1 %, which makes it competitive with SPYs current yield.

I seriously doubt brkb will pay this div while Buffett is alive, he doesn't change his thinking quickly. As certain as I was that brk had to split the Bs 50 for 1 AND authorize a buyback at, material discounts to IV, 20 years ago, that's how certain I am that this is the appropriate time for brkb to declare a quarterly div.

This small div payout would increase demand for the common with a very small taxable event relative to the increase in demand it would generate by private investors, certain funds, and many institutions.

Comments made on this board about Greg's challenge for deploying our capital are, embarrassing.

How did Buffett, T and T, do, deploying cap the past 15 years? Greg's hurdle is not that high, he will have little trouble beating recent history, imo. As usual most of you still can't kick the brkville habit, no one in brkville has pitched a perfect game the past 15 years. It's not even close.

Please, the regulars here who have never agreed with my prior calls the past 25 years, and ridiculed me on top of it, don't waste our time. I know, I can sell 4 % of my shares annually to pay the rent on my unfurnished Clayton double wide trailer, I know.

Buffett hopes to sell 10 Billion brk a year annually via the foundations for the next 10 years. Increasing demand for brk should be a priority. The div is step one once Buffett actually gives up control.

Good luck to all and be patient, obviously this isn't Greg's call, yet.

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This community has written 21,861 posts about Berkshire Hathaway. The article-length ones it recommended most:
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