Why spend $87,000 to buy a share of Berkshire Hathaway when you don’t even get a dividend?? Instead, you can trade the new options on Berkshire Hathaway launching on the CBOE shortly. Story here
We’ve always questioned the perception of Berkshire Hathaway as an “investment”. It’s NOT a true investment unless it generates a return on cash in the form of a dividend. Berkshire is a pure SPECULATION. When you buy Berkshire Hathaway stock, you are making a bet that Warren Buffet will continue to deliver ROI.
Apparently Warren Buffet’s concept of a share of stock as a share in a business, does not apply to him. Imagine you invest $87,000 for an ownership stake in a pizza shop. Years go by, and the store expands into a national chain. Yet, you never get a single check in the mailbox with your share of the profits. Meanwhile the operating partner is flying around in a private jet paid for by (your) company. That’s Warren Buffet.
For years now, Berkshire Hathaway has basically underperformed stocks. So why are legions of wide-eyed worshipers flocking to Berkshire Hathaway? What have they gotten for their investment?? They would have been better off SPECULATING in the new stock options on Berkshire Hathaway.
Don’t get us wrong. Warren Buffet is a brilliant guy, and a very good investor. But there are better places to park your money than BRK.A