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Charlie Munger promises lower returns for Berkshire-Hathaway
Old 12-10-2005, 08:44 AM   #1
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Charlie Munger promises lower returns for Berkshire-Hathaway

Charlie Munger doesn't interview very often although his speeches have been printed occasionally. Now they've been collected in a book, Poor Charlie's Almanack: The Wit and Wisdom of Charles T. Munger, so he's done a Kiplinger's interview.
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Re: Charlie Munger promises lower returns for Berkshire-Hathaway
Old 12-10-2005, 09:51 AM   #2
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Re: Charlie Munger promises lower returns for Berkshire-Hathaway

No doubt it will be more difficult for them nab the returns of the past. Too much cash. BRK is not the nimble beast of the past. I do, however, think it would be a different tune if the market were to get substantially cheaper. Munger obviously doesn't see that happening so I suppose his prediction is based on that premise.
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Re: Charlie Munger promises lower returns for Berkshire-Hathaway
Old 12-10-2005, 12:27 PM   #3
 
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Re: Charlie Munger promises lower returns for Berkshire-Hathaway

I have writen to Buffet asking why the do not pay a Dividend.

It is very nice that the stock price goes up, but if you want some Income, you have to sell the stock and then you can no longer participate.

I will probably sell anyway because if WB gets sick or dies, I could see a 50% drop in NAV.
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Re: Charlie Munger promises lower returns for Berkshire-Hathaway
Old 12-10-2005, 01:01 PM   #4
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Re: Charlie Munger promises lower returns for Berkshire-Hathaway

Quote:
I will probably sell anyway because if WB gets sick or dies, I could see a 50% drop in NAV
Please
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Re: Charlie Munger promises lower returns for Berkshire-Hathaway
Old 12-10-2005, 01:48 PM   #5
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Re: Charlie Munger promises lower returns for Berkshire-Hathaway

I doubt the NAV of its businesses would drop by 50%, perhaps you meant stock price. The "Warren" premium may be taken out but its businesses will go on as usual. A lot of stuff could change once Buffet is gone, some may even be good, who knows.
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Re: Charlie Munger promises lower returns for Berkshire-Hathaway
Old 12-10-2005, 11:30 PM   #6
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Re: Charlie Munger promises lower returns for Berkshire-Hathaway

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Originally Posted by Howard
I will probably sell anyway because if WB gets sick or dies, I could see a 50% drop in NAV.
Buffett claims that Berkshire Hathaway paid its last dividend because he had to take a bathroom break during a board meeting, and they rammed the vote through before he got back. So these days I bet the entire meeting adjourns when he feels the urge.

Yes, you could see a 50% drop in NAV. However there's another camp of "conventional wisdom" claiming that BH is 30-40% undervalued and would return over $100K/share at breakup. So when (if?!?) he dies I'd be holding, keeping an eye on the price, and maybe trying to buy more on the way back up...
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