4 ms·
It's funny you should ask. Buffett has actually said that if a company is not able to find good ways to reinvest their earnings, then it should be issued to own
by defertoreptar 9y ago
It's funny you should ask. Buffett has actually said that if a company is not able to find good ways to reinvest their earnings, then it should be issued to owners as dividends. Buffett is actually breaking that rule right now by Berkshire Hathaway having a massive cash balance.
- tim333 9y agoHe doesn't have a good way to reinvest just now but probably believes one will turn up. He came out pretty well having a lot of cash in 2008. As a Berkshire shareholder I'd much rather have the cash sitting with Buffett rather than paid to me as a taxable dividend.