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.
Charlie Munger promises lower returns for Berkshire-Hathaway
- Thread starter Nords
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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.
H
Howard
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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.
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.
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.
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.Howard said:
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...
