Masters in Business · Wednesday, August 26, 2026
David Bonson contends that Berkshire Hathaway, despite not paying dividends, actually exemplifies his dividend growth philosophy by holding numerous companies that do pay dividends. He argues that while some companies might retain earnings successfully for growth, many more 'set money on fire' through poor capital allocation compared to disciplined dividend payers.
“You know what's fascinating, Barry, is that Berkshire Hathaway is the company that proves my point, not the exception to the point. They are not a company. They are a holding company. And what do they hold? A whole bunch of companies that pay dividends to them.”
“But the Coca-Cola's and Wells Fargo's and Apple's and by the way, even the private businesses have made massive cash payments to the holdco.”
“I would argue that I could find 100 examples of ones that didn't return capital to shareholders and set money on fire for every one I could find that proved to be a better steward of that capital.”