I don't understandThe equity on BH balance sheet is permanent. In effect BH is a closed end fund (investment trust in UK-speak) but functions as a corporation re concentration limits, governance, custody of assets etc.
Berkshire hathaways Capital isn't permanent.
1. He's in the reinsurance business
2. Any one of the individual components could go bankrupt
3. His investments could lose value
If a mutual fund liquidates some assets because of sales it normally wouldn't affect you. Unless it was big enough to close the fund or raise the expense ratio. Usually new inflows and cash flows from investments could handle most outflows.
It would have paid Buffett a long tine ago to take it private I suspect.
1. People pay for reinsurance for a reason. There is risk that something could happen.
2. No company assets or businesses are guaranteed to be profitable in future.
3. Any stock market purchases he makes have market risk
Yes the number of shares that are outstanding in Berkshire Hathaway are permanent unless they do BuyBacks or issue more shares. But the underlying capital of any business isn't permanent
Statistics: Posted by Johm221122 — Wed Dec 31, 2025 7:59 am — Replies 19 — Views 1344