Dividends vs. Share Buybacks: Which Is Better for Your Wallet?
Berkshire HathawayBerkshire Hathaway(US:BRK.A) The Motley Fool·2026-02-07 15:10

Warren Buffett chooses share buybacks -- if one specific criterion is met.At an unguarded moment at a Berkshire Hathaway (BRK.B +0.80%) (BRK.A +0.74%) shareholder meeting in 1967, then CEO Warren Buffett did something he immediately regretted: He agreed to pay a dividend.The $0.10 per share payout might not sound like much, but it meant shelling out $101,733 to shareholders that he felt he could have turned into millions by reinvesting in the company's operations. To remedy the mistake, he offered sharehold ...