Warren Buffett’s Berkshire Hathaway Poorly Governed?



Comments (6)

  1. Craig Jones says:

    I wouldn’t profess to tell Mr. Buffet how to manage his company. His track record speaks for itself. Any holder of the stock can and should sell when and if he/she believes that management is doing a poor job of growing his investment.

    Free markets have their own built-in discipline!

    Talking heads are just that – talking heads. And they usually have much to say about what others should do with their money.

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  2. Paul C says:

    I’ve posted this elsewhere so will copy the numbers, I think they’re correct.

    The buyback of 9200 A shares was done at a price of $131,000 vs a closing price of $130,831. That represents a 0.12% increase over the share price that day. Not a bad deal for buying back 9200 A shares.

    Given that on average about 300 A shares get traded per day, and buffett has a rule of only buying about 1/3 of the daily volume whenever he buys, it would have taken about 90 days to pick up these shares on the open market, and the price may well have been pushed higher.

    The closing price today was 212990, which represents a 62% increase over the last 3 and a bit years, not bad at all for remaining shareholders.

    Regarding the dividend, there was a vote about this last year, and the shareholders rejected it, sometimes you should only get on a train if it’s going where you want it to go.

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  3. Temitope Adeyinka says:

    The arguments against Berkshire’s dividend policy are extremely weak. The corporate governance slant to it is even more laughable.

    BH’s dividend policy has worked very well for it in the past 50 years and made it perhaps the best corporate allocator of capital in modern times. The records of many decades speak for themselves.

    The shareholders support the current dividend policy, over 90% of them recently voted to keep it that way.

    The reference to Berkshire losing its shareholders 12.5% in 2015, compared to a 1.2% return on the S & P 500 Index is perhaps the silliest point in this poor article.

    Historically out of its 51 years of records, BH has underperformed the S&P 500 index in 17 years, including 2015. So how can 2015 be an outlier and does that indicate a decline in BH’s investment performance trend? Some of the past records were even worse than 2015’s.
    1999, BH: -19.9%: S&P 500’s +21%
    1990, BH: -23.1%; S&P 500: -3.1%
    1975: BH: +2.5%; S&P 500: +37.2%

    I do agree with Craig Jones above, “Talking heads are just that – talking heads.”

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  4. J.Stewart says:

    Negative 12.5% in year 2015, does speak for itself.
    When you find a free market, could you please post the details.

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  5. Craig says:

    I have Berk shares, quite a bit in fact. I do enjoy reading diverse view points about the stocks I hold. Personally I’d love if BRK paid a dividend. Given that the cash horde is always so high and never is used in its entirety, I don’t see why we never see a dividend. Warren likes to keep at least 20 billion on hand no matter what, normally sitting on 60+ and as yet never using any where near 40 so the excess should go to the faithful shareholders. I certainly could use the money as much as Warren, probably more for sure.

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  6. Frank Dracman says:

    Has anyone stopped to think about the negative toll on the health of America and the world that can be attributed to Berkshire and Mr. Buffet? The obesity epidemic hoisted upon us by the food complex and restaurant industry so well represented here (Kraft/Heinz, Mars, See’s, Dairy Queen, Burger King, Coca Cola, Mondelez) is significant. The sugar, trans-fat and and processed food they push are in and of itself a great supporting investment thesis for their purchase of DaVita. How does Buffet get a free pass for this and for supporting Hillary when the Koch’s get vilified?

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