No. of Recommendations: 18
Hello ZiggyD,
I understand, respect and appreciate your thoughts, especially regarding “few who can create value by combining…candies and railroads like Buffett.”
Here are the “nuts” I can’t crack.
The break up of Berkshire Hathaway could trigger significant tax liabilities. The company holds substantial unrealized capital gains in its stock portfolio and a breakup could trigger a taxable event. Additionally, selling off individual subsidiaries could result in capital gains taxes for the company.
The synergy created by Berkshire's Insurance operations provide a steady flow of capital for acquisitions and investments, while subsidiaries like BNSF Railway and Berkshire Hathaway Energy generate stable cash flows. Breaking up Berkshire could disrupt these synergies and expose individual businesses to greater market volatility.
Buffett and his team have been actively involved in succession planning, grooming a new generation of leaders within the company. Greg and Ajit seem to me to be very capable.
I dunno, ZiggyD. While a BRK breakup is not impossible the (breakup) stars would need to align: mkt dynamics, poor post Buffett leadership, the BRK Board and the larger shareholders to grease the BRK breakup skids.
Perpetual Wealth and Health to you and yours, ZiggyD.
Silverlinin
