Netjets outperform stock market
BROWSER UPDATE To gain access to the full experience, please upgrade your browser: Chrome Safari Firefox Internet Explorer. If you are running Internet Explorer 10 and above, make sure it is not in compatibility mode. Warren Buffett and shareholders in his Berkshire Hathaway Inc. In the past, Mr. I'm pretty sure that Mr. Gelb didn't utter the word "dividend," so Mr. Buffett introduced the idea of his own accord. Buffett has said over and over and over again that he doesn't think Berkshire should pay a dividend--at least not in his lifetime.
If there ever comes a time that Berkshire does declare a dividend, Mr. Buffett has predicted that Berkshire shares will fall, not rise, if the firm moves to pay a dividend.
How Risky Is Berkshire Hathaway Inc.? -- The Motley Fool
The first question back from lunch is about 3G, the private-equity firm Berkshire has partnered with on a few deals, starting with the acquisition of H. Buffett gives his standard answer defending 3G, a firm that has a well-deserved reputation for ruthless cost-cutting. Buffett has lauded 3G and its leaders, saying the cuts they make are necessary.
Wells Fargo has issued a statement in response to Mr. Buffett's comments at the top of the meeting. We agree with Mr. We have taken decisive actions to fix the problems, make things right for customers, and build a better Wells Fargo. Our top priority is rebuilding the trust of our customers, team members, community partners, and shareholders. Eliminating product sales goals for Retail Bank team members and implementing a new performance management and rewards program that emphasizes customer experience and team goals.
Centralizing key enterprise control functions, such as risk management and human resources, which had been reporting to the lines of business. Strengthening ethics and risk management throughout the company, including creating the new Office of Ethics, Oversight and Integrity to centralize the handling of internal investigations, complaints oversight, and sales practices oversight For a full list of steps we have taken, please visit: Every spring tens of thousands descend on Omaha, Neb.
While Warren and Charlie take a break, the Yahoo team that's webcasting the proceedings decided to interview their hero: Bogle, the founder of indexing pioneer Vanguard Group, said there is in fact a point at which indexing can cause a problem. He said that if everybody indexed, the only word you could use would be chaos and the markets would fail. But what are the changes of that happening? Bogle in the interview with Yahoo.
He also noted big issues with exchange-traded funds, saying there are too many, they're too speculative and they trade too often. Here's our main story from WSJ. They've just broken for lunch, but not before Mr. Munger works in one of his frequent endorsements of China.
This time he says that the Chinese stock market is cheaper than the U. But he says there will be "growing pains. But what about Mr. Munger, Carol Loomis asks? Would you pay him "two and 20" for his investment advice?
The question gets to the crux of the criticism that some corners of Wall Street direct toward Mr. He paints investors with a broad brush, they say, but some managers really do beat the market -- including Mr. Buffett acknowledges that several hundred or even a thousand people in the world, including about 12 he knows personally, "would do better than average in investing over a long period of time. He is almost definitely sure to win the bet.
The man on the other side of the bet, Ted Seides, recently wrote a column about why he lost. Buffett agrees, saying that its hard to find bargains. A question from the floor prompts Mr. Buffett to discuss the capital allocation abilities that his unnamed successor must have. Munger chimes in to remind the audience that it's always an option to buy back shares, something that Berkshire has done only rarely in the past.
But that mandate could change, and Mr. Munger assures the crowd that "one way or another, something sensible will be done" with all the cash that Berkshire will generate in coming years.
Netjets Inc.: quotes & news - Google Finance
A shareholder asks, through Andrew Ross Sorkin, about how Mr. Munger both have repeatedly slammed the work done by compensation consultants. Buffett as part of his compensation package last year, roughly in line with the security costs from past years.
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From the analyst panel comes a question about whether there have been any changes to the succession plan. Buffett sent to shareholders this year. Workers for NetJets, one of Berkshire's subsidiaries, are picketing and passing out handbills outside the meeting as part of a long-running labor dispute, according to the union. NetJets safety workers "want industry-standard pay and an aircraft maintenance system that relies on skilled NetJets workers rather than third-party vendors," according to a Teamsters press release.
Though Berkshire typically never sells its subsidiaries, and Mr. Buffett loves to say that his favorite holding period is "forever," the company does note in its " Owner's Manual" that labor problems could be one reason they would sell a company. Here's some history on NetJets' labor problems. No one has asked about it at the meeting. Buffett has left the scene. He calls out a few Berkshire insurance operations, including Guard Insurance, Med Pro and United States Liability.
Buffett mimes this action, hamming for the crowd. Then he takes an unscheduled detour into a discussion of the major tech stocks that top the U. He marvels at how capital-light their operations are. Munger takes an even longer view, saying that all hydrocarbons will be gone from the face of the earth eventually. He can be gloomy sometimes. A shareholder asks, via Andrew Ross Sorkin, about whether a proposed investment tax credit would change the way BNSF operates.
Each company owns about a quarter of Kraft Heinz. That deal fell through shortly after news of the proposal became public in February when Unilever rebuffed the approach. Everyone knows Berkshire would benefit from a lower corporate tax rate, but would its customers get some of the savings too?
Buffett says, especially in the heavily regulated utilities business, where all the company's savings will be passed along to its customers. On the other hand, any change to how Berkshire's investment gains are taxed would go directly to the shareholders, Mr. In the rest of Berkshire's many businesses, "some of it almost certainly gets competed away, and some of it might not be competed away," he says. Buffett and Munger revisit one of their favorite themes: Via Becky Quick, a shareholder asks why Mr.
Buffett has advised his wife to invest in index funds after his death instead of in Berkshire shares. The two men agree to disagree. Buffett is arguing in favor of a strategy that leaves his wife protected from people who don't have her best interests at heart and would try to persuade her to move her money around.
Munger wants his heirs to enjoy the upside that he believes will come by owning Berkshire shares. DOW JONES, A NEWS CORP COMPANY. News Corp is a network of leading companies in the worlds of diversified media, news, education, and information services.
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Buffett Raises the Prospect of Paying a Dividend.
Bogle Says There Is Such a Thing as Too Much Indexing. Buffett is Making Plans for a Lower Tax Rate. Buffett Would Pay Munger 'Two and 20'. One place he's more concerned is liquidity, specifically in the bond market. A banner hangs near a NetJets jet in Omaha during Berkshire's annual meeting two years ago.
Berkshire has faced labor unrest at NetJets for several years. Buffett responds that it would depend on the details of the credit. Dow Jones Products Barron's BigCharts DJX Dow Jones Newswires Factiva Financial News Mansion Global MarketWatch Private Markets realtor.