Berkshire Hathaway is expected to report 2015 results on February 27 along with Warren Buffett’s annual letter to shareholders. Mr. Buffett’s practice of releasing the report on a Saturday morning is intended to promote greater thought and reflection on the
An Examination of Berkshire Hathaway’s Retained Earnings Test
Berkshire Hathaway appears almost certain to fail Warren Buffett’s five year earnings retention test when the 2013 annual report is released in February. We assess the validity of the test as well as the implications for Berkshire Hathaway if Mr. Buffett decides to return capital to shareholders.