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Berkshire Hathaway BRK-A, BRK-B does not pay a dividend because its chairman and CEOWarren Buffettbelieves it is more beneficial to allocate the company's earnings in other ways. In particular, Buffett prefers to reinvest profits in things that allow his company to improve its efficiency, expand its reach, create new products and services as well as improve existing ones, and further separate itself from competitors.

Buffett, like many business leaders, feels that investing back into his business provides more long-term value to shareholders than paying them directly because the company's financial success rewards shareholders with higher stock values. Additionally, Berkshire Hathaway maintains an aggressive stock buyback policy that puts cash directly into shareholders' pockets.

Despite the company having billions of dollars of cash on hand, the prospect of a Berkshire Hathaway dividend is dim as long as Buffett is in charge. The company has paid only one dividend during his reign, inand Buffett later joked he must have been in the bathroom when the decision was made.

Why Warren Buffett Loves Dividends, but Doesn't Pay Any -- The Motley Fool

Nevertheless, statistics give credence to Buffett's stance that using profits to buttress the company's financial position results in greater wealth for shareholders than paying dividends. As for the stock buybacksthese benefit investors in two ways—they allow them to cash in some or all of their company stock at a premium they would not receive on the open market. The remaining shareholders also increase their ownership stake as stock buybacks reduce the total number of outstanding shares.

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Sophisticated content for financial advisors around investment strategies, industry trends, and advisor education. Why doesn't Berkshire Hathaway pay a dividend?

Stock market christmas eve hours, BRK-B By Ytr forex Updated December 14, — Learn why Berkshire Hathaway, the company owned by billionaire Warren Buffett, prefers stock buybacks over paying its shareholders Explore the theory that Berkshire Hathaway stock carries does berkshire hathaway b shares pay dividend Warren "Buffet Premium" that would disappear upon his does berkshire hathaway b shares pay dividend and Understand Warren Buffet's fundamental approach to investing and learn why his basic investment strategy explains his no-split Discover what Warren Buffett's surprising answer is to the question of what was the single worst investment that the "oracle Learn more about how much Warren Buffett receives in salary and how he continues to stay involved with his company and his Find out why Warren Buffett's holding company, Berkshire Hathaway, may eventually grow so large that it may struggle to maintain Discover how Warren Buffett's Berkshire Hathaway is structured and if the company is appropriate for individual retirement accounts.

Berkshire Hathaway reported another massive jump in earnings and book value growth, leading Buffett to address the company's buyback plans. It would be easier to list the industries in which Berkshire Hathaway Inc. With its share price at an all-time high amid talk of a stock market correction, why would anyone buy Berkshire Hathaway shares? Learn about Warren Buffett and his company Berkshire Hathaway.

Understand why the four companies listed are his most important and profitable lines of business.

Understand who Warren Buffett is and how he made most of his net worth. Learn about the main places and investment vehicles where Buffett keeps his money.

What does that mean for Berkshire Berkshire Hathaway was a favorite among hedge fund managers last year.

BRK.B: Why Berkshire Hathaway Stock Is Better Than Ever | InvestorPlace

What is the draw at this particular point in time? Learn how much you would now have if you had invested right after Berkshire Hathaway's IPO, and find out the classes of shares that you could invest in. Find out why Berkshire Hathaway stock may be undervalued when the company has an overall growth business, something that should support a premium valuation.

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