CA - Berkshire Hathaway: I Hope They Never Pay A Dividend

2025-03-06 13:21:06 ET

Summary

• Berkshire Hathaway Inc. is a tax efficient investment, ideal for taxable accounts with its lack of dividend payments.
• Berkshire is defensive in bearish environments, even eking out a positive gain in the 2022 tech bear market.
• Berkshire may be able to exceed 10% ownership of the 5 Japanese trading houses, this could make 100% of their foreign dividends of those companies tax-deductible regarding DRD regulations.
• 2024 saw operating earnings grow by nearly 27% over 2023, largely attributed to insurance operation performance.
• I estimate BRK.A stock's normalized P/E ratio in this article, adding in “look through earnings” of the non wholly owned businesses.

My liquid IRA

If I had to drum up an absolutely perfect stock for a liquid account, it's Berkshire Hathaway Inc. ( BRK.B , BRK.A ). It performs about on par with the S&P 500 ( SP500 ); however, it doesn't create a tax liability being that they don't pay dividends. For those who are retired and possibly collect total dividends under the married filing jointly threshold for not having to pay taxable dividends, sure, living off dividends is a fine strategy. ...

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