Friday, 10 October 2014

Why Buffett decides not to pay out dividends in 45 years in Berkshire Hathaway?

He has been able to reinvest Berkshire's profits at rates considerably higher than Berkshire's investors could have earned y reinvesting them in the market. 

When the company can no longer meet the test of reinvesting $1.00 of EPS to create $1 of additional value, then, says Buffett, Berkshire will pay dividends, and let his owner-partners reinvest the cash.

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