- It's no secret that Warren Buffett and Charlie Munger believe Berkshire Hathaway's (BRK.A, BRK.B) cash hoard (and growing by the billions each quarter) is best invested by them, rather than returned to shareholders. That the policy has been a wild success for Berkshire investors is no secret either.
- But what about a post-Buffett Berkshire, asks Tara Lachapelle. Under pressure to find the sort of "elephant-sized" acquisitions which can move the needle at Berkshire, new management may be able to stall for time and curry favor with investors by returning some capital.
- There's also Berkshire's current fancy valuation - 20.3x earnings vs. a five-year average of 17.9x. With a "Buffett premium" tougher to justify without The Oracle in charge, a dividend could go at least some way toward supporting the stock price.