> He believes in companies that pay dividends, yet BH does not. The reason he likes companies that pay dividends is that often he can allocate capital better t

> He believes in companies that pay dividends, yet BH does not. The reason he likes companies that pay dividends is that often he can allocate capital better than the companies. CEOs are often tempted to reinvest profits in projects (such as mergers) that generate a sub-standard return. Berkshire is different in that its principal purpose is capital allocation. As long as Buffett succeeds in achieving better than average returns, it makes sense not to pay dividends. There is nothing duplicitous about that.