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As I stated previously, he should distribute the excess cash to shareholders either in the form of share repurchases or dividends. This is how normal companies allocate capital. If there aren't attractive investment opportunities or projects available, the management gives the money to the shareholders. Why should Berkshire be any different?

No dividends, please! You would have an uproar from the BRK investors who chose this investment for the taxable portion of their portfolios, so as to minimize taxes as much as possible. A sudden change like that would infuriate many who have alreaady, through precedence, become accustomed to viewing this stock as one part of a tax strategy to minimize capital gains/dividends within the taxable portion of their portfolio.
For some, who have a sizable position in BRK accumulated over a long period of time, the dividends would be enormous. If I want dividends, or mutual funds which have high turnover, or if I want to take an occasional flyer or two on timing/trading a stock, I'll do that inside the IRA, 401K, annuity, etc.

There are few other equity investments that defer taxes indefinitely as well as BRK can, aside from indexing, Spiders, etc.....and even there you may collect some modest dividends/turnover annually. So if we are to accept Buffett's recently stated belief that he expects to modestly exceed the S&P 500 over the next decade, then the best vehicle to defer maximum taxes inside a taxable account and still have a reasonable expectation for matching and/or exceeding the S&P 500 would be BRK....

unless of course you want to hold a basket of tech stocks or other non-dividend paying growth stocks, please don't go there tonight!

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