Updated: May 12
"There is a joke that when Berkshire Hathaway made the decision to give out their first dividends in 1967, Warren Buffet was in the bathroom when that decision was made."
This is what Studentpreneur and Tedx Speaker Bryan Lawrence Gonsalvez answered a question asked in the Quora forum where he cited that Berkshire Hathaway -
"doesn’t pay any dividends because Warren Buffet (The Chairman and CEO of BH) believes that instead of paying dividends they should allocate their profits for more reinvestment into the company."
Gonsalvez said the reinvestment philosophy of Buffett is what separates the company from its competitors, since it provides a more long-term value that results in higher stock values.
A notable fact, he said that Berkshire Hathaway's stock price increased by almost 700,000% between 1964 and 2014 and specifically experienced a recent uptick in the months of November and December 2016. Someone who invested $1,000 in the company's stock in 1980 would have achieved millionaire status in 2018.