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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: Munger_Disciple ✭  😊 😞
Number: of 22353 
Subject: Re: Some Thoughts - Maybe Too Many
Date: 09/20/24 3:38 PM
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I can't see Berkshire issuing its stock to anyone, including its shareholders.

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. If everyone chooses the stock dividend option, note that every stockholders ownership in BRK stays exactly the same. So there is no argument against it. Moreover, the index funds and other mutual funds may choose cash dividend so over time, it increases the relative ownership of individual, life-long shareholders vs. index funds.
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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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