From The Archives: Warren Buffett On Unwise Dividends [Pt. 1]

Warren Buffett has famously, always refused to payout a dividend to shareholders of Berkshire Hathaway. This has put off some investors, so I thought it would be interesting to take a look through some of Berkshire’s old letters to gather some of Buffett’s insights on the topic of dividends and try to shed some more light on why he believes that his holding company does not need to make a payout. [buffett] “Many corporations that consistently show good returns both on equity and on overall incremental capital have, indeed, employed a large portion of their retained earnings on an economically…