Berkshire Hathaway annual meeting was just concluded on 1 May. As usual, one of the biggest spotlights on Berkshire Hathaway is on the issue of a large cash position and the amount of share buybacks it does. In 2020, Berkshire Hathaway spent a whopping $24.7 billion in share buybacks. During the first quarter this year, Berkshire Hathaway spent another $6.6 billion in share buybacks. Meanwhile, the amount of cash piles grew 5% during the first quarter to more than $145.4 billion. One of the biggest questions raised about Berkshire Hathaway is its persistent stance towards not paying any dividends despite the large cash position. Instead, Berkshire Hathaway focuses heavily on share buybacks and believes that distributing dividends to shareholders is a second-rate solution. Before we go deep into whether this is indeed true for Berkshire Hathaway, let’s go through some of the pros and cons of share buybacks vs distributing