Many commenters miss that the Buffett premium has been replaced by the Berkshire premium. How many other companies view shareholders as partners. They want liquidity, which means a continual turnover of shareholders. Warren carefully attracted owners who will take the time to understand the business. We’ve made a lot of money by doing that!
Hi Arthur - That's a great point. Greg even sort of touched on that in his letter, about how many shareholders' trust in Buffett personally has over time transitioned into trust in Berkshire itself.
Kevin, Larry Cunningham wrote a readable book, The Margin of Trust. Few CEOs pay any attention to building trust; they think stock splits and increased dividends will do the trick. Speculators think splits and dividends will make them rich. Their tuition is quite expensive—and often doesn’t result in creating value.
Thanks for your contributions to understanding the Buffett world!
What an excellent initiative by Abel! If that's not having skin in the game, then I don't know what is.
Greg will also not have to be burdened with an increasing amount of non-Berkshire assets: he will combine managing his money with ours.
Agreed!
Many commenters miss that the Buffett premium has been replaced by the Berkshire premium. How many other companies view shareholders as partners. They want liquidity, which means a continual turnover of shareholders. Warren carefully attracted owners who will take the time to understand the business. We’ve made a lot of money by doing that!
Hi Arthur - That's a great point. Greg even sort of touched on that in his letter, about how many shareholders' trust in Buffett personally has over time transitioned into trust in Berkshire itself.
Kevin, Larry Cunningham wrote a readable book, The Margin of Trust. Few CEOs pay any attention to building trust; they think stock splits and increased dividends will do the trick. Speculators think splits and dividends will make them rich. Their tuition is quite expensive—and often doesn’t result in creating value.
Thanks for your contributions to understanding the Buffett world!
Thanks Arthur! I’ll have to read that one — Larry Cunningham does great work.