Message Font: Serif | Sans-Serif
No. of Recommendations: 8
But one of the advantages of a Berkshire, it seems to me, is that these captive businesses actually enjoy better opportunities for capital reinvestment than their competitors--they can invest in the other businesses under the Berkshire roof.

This is actually an enormously important aspect of Berkshire's greatness. The head of the subsidiaries are free to reinvest in their (or related business), but their compensation reflects an appropriate charge for retaining this capital. This dynamic is absent for virtually all public companies, who face no penalty for reinvestment, whether wise or not.
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.