tag:blogger.com,1999:blog-7294165939647321702.post3157002357587310715..comments2024-03-11T10:31:06.107-04:00Comments on <center><a href="http://www.barelkarsan.com">Barel Karsan - Value Investing</a></center>: Even Buffett Isn't Perfect: Chapter 1Saj Karsanhttp://www.blogger.com/profile/04493152766022812984noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7294165939647321702.post-71653860334501334842009-03-09T03:34:00.000-04:002009-03-09T03:34:00.000-04:00Hi Robert,I believe your line of thinking is corre...Hi Robert,<BR/><BR/>I believe your line of thinking is correct regarding why Buffett has not paid a dividend. He has said many times that where he adds value is when it comes to capital allocation. The managers of the business are great (or should be) at managing the operations of the business, but not necessarily at allocating capital, which is where he comes in. So in his mind, that is where he is providing the value to Berkshire's shareholders.Saj Karsanhttps://www.blogger.com/profile/04493152766022812984noreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-15283216027859654982009-03-07T09:27:00.000-05:002009-03-07T09:27:00.000-05:00Hello Barel - there are many things to honor about...Hello Barel - there are many things to honor about Warren Buffett's prowess. However, I'd like to add another issue for examination. When you read his shareholder letters it is impressive how he gets returns from the divisions/businesses and when they are not cash generating, he provides a story of why that is. He is, however, entirely out-integrity with his shareholders/owners - providing not a single cent of dividend/yield return. While I've not read his rationale, I'd expect him to have concocted a story about how BH knows best and the profits are better invested by BH on behalf of hte shareholders. He would NEVER accept that on the inside of the organization. So the thinking is corrupt and has no integrity. I invite you, since you seem to have some interest, to add this to the examination of Buffett and bring more to light.Anonymousnoreply@blogger.com