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Berkshire Coverage

Don't Hold Your Breath for a Berkshire Dividend

In his annual letter, Berkshire Hathaway chairman and CEO Warren Buffett laid out a case against a Berkshire dividend and a case for more big acquisitions, and issued a reminder not to worry about short-term uncertainty.

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Even if there were no major revelations in Berkshire Hathaway (BRK.A) (BRK.B) chairman and CEO Warren Buffett's annual letter, it still provided us with plenty to chew over, from a discussion of why the firm won't be paying a dividend anytime soon to why Buffett is still actively looking for new acquisitions.

Overall, Buffett described his performance in 2012 as "subpar" as the book value per Berkshire share increased by 14.4% versus the S&P 500's 16% gain. Buffett still thinks that the gain in Berkshire's intrinsic value will over time likely surpass the S&P 500's returns by a small margin, but that much of the firm's outperformance will come when the broader market is facing challenges. Morningstar's Berkshire analysts are taking a  deep dive into the financial results and performance of the firm's units.

Jeremy Glaser does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.