This Day On The Street
Continue to site
ADVERTISEMENT
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
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $130.28 0.00%
BRK.A $214,490.00 0.00%
BRK.B $142.09 0.00%
BAC $15.64 0.00%
GS $197.99 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs