In his latest letter to Berkshire shareholders, released February 28, Buffett does hold out hope that Berkshire might pay a dividend someday. He suggests that in 10 to 20 years, the company may have grown so large that it will be hard for it to allocate its capital efficiently. In that case, he says, its leaders will have to choose between paying dividends or, more preferably in Buffett's view, buying back shares if the stock is cheap enough. In either case, given Buffett's age, 84, someone else is likely to be making those decisions.
Read more at http://www.jewishworldreview.com/0315/buffet_picks.php3#qs4Cy5WYWg8774xO.99
Regardless of how Buffett feels about paying dividends, you might want to consider some of Buffett's favorite dividend-paying stocks if you're looking for current income. But you have to be judicious. We don't normally second-guess the master, but we have doubts about some of his holdings. Berkshire, for example, has continued to hold shares of Coca-Cola (KO), Buffett's largest position, even though U.S. consumers are drinking less soda and analysts have been lowering their 2015 earnings forecasts. Last year, Buffett added to an already sizable position in International Business Machines (IBM), a stock that we suggested selling in December because the tech giant had failed to keep up with industry changes. Around the same time, Berkshire increased its stake in Deere & Company (DE), even though the maker of farm equipment has warned that sales for the fiscal year that ends in October could fall 17% as the agriculture sector experiences a temporary slowdown.
Read more at http://www.jewishworldreview.com/0315/buffet_picks.php3#qs4Cy5WYWg8774xO.99
Source: Jewish World Review
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Posted by D4L | Wednesday, April 01, 2015 | ArticleLinks | 0 comments »________________________________________________________________
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