Warren Buffett’s Berkshire Hathaway Inc. (BRK/A), which had $48.2 billion in cash as of Dec. 31, is urging shareholders to vote against a proposal for the board to consider paying a “meaningful” dividend.
Directors review annually whether to retain all earnings, and will follow previously stated principles about capital management, according to a proxy filing today. Buffett has said the company hasn’t paid a dividend because he’s been able to generate better returns for investors by pursuing takeovers, buying securities and investing in subsidiaries like MidAmerican Energy and the Burlington Northern Santa Fe railroad.
Shareholder David Witt, who has a stake valued at about $8,650 based on yesterday’s closing price, proposed the measure, stating that Berkshire has “more money than it needs” and that the board should consider the investors who aren’t billionaires. Buffett, the chairman and chief executive officer, became the world’s second-richest person by (Read more...)...
