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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: very stable genius ✶  😊 😞
Number: of 22352 
Subject: Re: SNOW down a lot today
Date: 03/01/24 11:12 AM
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Jim: "I'm sure that this effect is going on, and do not argue that it's egregious, but I would love to see how that was calculated. The figure seems a tad extreme even to me, at first glance. Are the managers really paid (say) over $700 billion a year?"

I would love to see how it was calculated as well.

He did go on to say this...

"One final comment on the record share repurchases in 2022.
A trillion dollars in shares repurchased bought 2.8% of the S&P 500's $36 trillion average market capitalization during the year. However, shares outstanding shrank by only 1.1%.
What happened to the remaining 1.7%? That's the dilution that comes with CFOs telling investors to ignore share-based compensation because it's not a cash expense."

John Bogle said this in his book, The Battle for the Soul of Capitalism,
"What began two centuries ago as owners' capitalism—in which our corporations were run for the benefit of their owners—has transmogrified into managers' capitalism,
in which our corporations are being run for the benefit of their managers.
As I hope we all know, the value of a corporation is nothing more, nor anything less, than the discounted value of its future cash flow.
The compensation has gotten totally out of hand, ridiculously out of hand. It's basically robbing the shareholders of these corporations of the money that's really rightfully theirs.
That's a system that has to change. Corporations should be managed for the shareholders and not for the managers or the insiders.
I believe cost is the single most important factor in investing."
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This community has written 21,861 posts about Berkshire Hathaway. The article-length ones it recommended most:
BRK: Why Not XOM? · 62 recs · 2024
Second quarter comments · 60 recs · 2023
Berkshire's Profit Contributors · 58 recs · 2023
Summary of 2Q 2026 · 55 recs · 2026
3Q Summary · 53 recs · 2024
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