Re: Berk Hath Bstock?
[ QUOTE ]
If Buffett dies does the stock price go up or down? Once Buffett is out of the picture, they might pay a dividend. Also note that Buffett sidekick, Charlie Munger has for the most part retired without any change in the stock price.
A bigger retirement problem at BRK is what happens when the people who run all those 'wonderfull' companies he bought start retiring/dying.
[/ QUOTE ]
I think the price action is immediately down, then back up as the new mgmt starts unlocking some value, probably through a dividend as you said. New mgmt is unlikly to be able to invest $40B or so, and Buffett's foundation will require cash for it's charitable activities.
Many of the subsidaries are franchises that have some competitive barriers, so they can probably get by without top notch management for a while. But you are still reliant on the new BRK mgmt to recruit and manage the "new blood" effectively and you won't see their results for years, maybe decades.
|