Dividends from Berkshire? Not on Buffett's Watch

Warren Buffett thinks he can do a better job managing his company’s cash than shareholders can.

For more than 45 years, Berkshire Hathaway (symbol BRK.B) has declined to pay dividends. A vocal group of shareholders would like that to change. But chief executive officer Warren Buffett has repeatedly expressed his views on the topic: No dice. “He feels he can earn a higher return for shareholders if he invests the company’s retained earnings, rather than if the shareholders did it themselves,” says David Kass, a finance professor at the Robert H. Smith School of Business at the University of Maryland in College Park.

See Also: Don’t Bet Against Warren Buffett

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Contributing Writer, Kiplinger's Personal Finance
Carolyn Bigda has been writing about personal finance for more than nine years. Previously, she wrote for Money, and is a regular contributor to the Chicago Tribune.