This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Berkshire Shares Hit New Record As Buffett's Omaha Meeting Looms

While Berkshire has outlined a path toward paying a dividend, few investors or analyst expect such an announcement under Buffett's tenure.

"I don't think there is any chance that Berkshire will pay a dividend while Buffett is running Berkshire and I am happy with that," Tilson of Kase Capital says.

The prospect of a Berkshire dividend and CEO transition will have an impact on markets given Buffett's influence as an acquirer of companies and a willing investor of billions in emergency capital in the likes of Goldman Sachs (GS - Get Report), General Electric (GE) and Bank of America (BAC - Get Report).

"They will have a practice of dispersing cash more regularly," Russo says of his expectations when a management transition occurs. He suspects a dividend will be about helping to transition Warren Buffett's fortune to philanthropic commitments such as the Bill and Melinda Gates Foundation.

"We think it is a very strong company from a credit perspective and it is going to remain a strong company through a management transition," Bruce Ballentine, a Vice President in Moody's Insurance team, said in an April interview.

"We assume the company will manage share repurchases or any future dividends to protect its credit profile."

While Kass's presence as a Berkshire short-seller and Warren Buffett's advancing age could elevate some anxieties of shareholders, ultimately, the meeting is most likely to remain a celebration. That's especially true given Berkshire's unique position to benefit from a strengthening economic recovery in the U.S. and internationally.

"Berkshire annual meeting or Kentucky Derby Day... For me, Berkshire by 10 lengths," Mario Gabelli, head of GAMCO Investors, wrote on Twitter.

Buffett also has the ability to integrate social media with this year's annual meeting, after the 'Oracle' joined Twitter on Thursday.

-- Written by Antoine Gara in New York.

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.66 -0.09%
BAC $14.77 1.40%
BRK.A $220,210.00 0.55%
BRK.B $146.84 0.93%
GS $166.22 1.30%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs