Warren Buffett On Dividend Investing

Continued from part one...

As long as cash continues to flow in from Berkshire’s operating businesses, Buffett expects his conglomerate to continue to reinvest back into the business, rather than paying it out to shareholders:

[buffett]

“We expect to continue to diversify while also supporting the growth of current operations though, as we’ve pointed out, our returns from these efforts will surely be below our historical returns. But as long as prospective returns are above the rate required to produce a dollar of market value per dollar retained, we will continue to retain all earnings. Should our estimate of future returns fall below that point, we will...