No. of Recommendations: 4
never makes it.
When I heard that Becky was doing that two-hour lovefest with the Buffett family, I didn't expect to learn much or hear anything substantive unless Warren brought it up. I wasn't disappointed.
Warren could have told Becky that the purchase of googl was a joint decision by Ted, Greg, and Warren, but he didn't. He could have said that was the first buy made by Greg and Ted, without his input, which would have been bullish, but he didn't.
Warren could have said, I want your viewers to understand I no longer believe it's appropriate for retired people to be 90% SPY, in view of the SPY current concentration, valuation, low yield, and risk, going forward. I now believe brkb offers better value with less risk than spy.
Brkb will be declaring a 1$$ a share quarterly dividend as of q-2 2026, which I believe will make brkb a compelling value relative to spy, going forward. With brkb yielding a bit below 1 %, every income fund on the planet will be a buyer of brkb. Every growth and income fund, on the planet, will be a buyer of brkb. The small taxable event as a result of the div will be more than made up by the increased demand for the common which will trade higher as a result of the dividend, and increased demand for the common.
Buffett could have said, I never really appreciated the fact that every share of brkb is valuable and very dear, hence we should have bought back brk shares more aggressively beginning 20 years ago. At Berkshire we don't have stock-based comp and we don't give away brk shares like its candy. When brk buys back a share of common we reduce the issued and outstanding by that share, forever. No other public company can say that. Unless we use brk shares to complete an acquisition, which is unlikely, repurchased shares remain in our treasury, forever. Therefore, I believe brkb will outperform spy going forward, with much less risk.
It's going to be very interesting to see how Greg thinks on these critical issues, but who knows, Warren may have to pass before Greg is truly in control.
Warren almost NEVER makes the bullish case for brk, so I did. I'm expecting shareholder friendly moves the next two years, IF, huge IF, Warrens old school thinking, takes a back seat and he really allows Greg and the team call the shots.
As I posted on Friday, I bought back the calls I was short and sold some puts when brkb broke 480 on Friday.
BTW, let's not have childish responses from the old timers, that's my call, Bullish now, hoping Greg, gets it??
I did learn one very material fact in the two-hour lovefest but I'm keeping that to myself for now. Good luck to all who believe the bullish thesis. hc.
