Berkshire Hathaway Annual Shareholder Meetings (since 1994) 1995-Afternoon Session-BRK Annual Shareholders Meeting
Dec 1, 2018
AI Snips
Chapters
Transcript
Episode notes
Same Criteria For Banks And Businesses
- Berkshire applies the same acquisition criteria to banks as to any business and has a long history in banking.
- They avoid sector bets and focus on circle-of-competence evaluation of individual banks.
Retain Cash Only If It Creates Value
- Use retained earnings only if each retained dollar can create more than a dollar of market value over time.
- Return cash to shareholders if you cannot deploy it at that threshold.
Market Pay And Long-Term Horizons
- Compensation tends to follow market rates, and firms must pay to retain talent even if it pressures returns.
- Longer partner horizons can smooth short-term volatility in payouts.