We all know that classic Wall Street saying, “Cash is king.” But sometimes, too much cash on hand could be a huge problem. And that’s just the issue plaguing America’s favorite value investor, Warren Buffett.
Buffett has long been a big fan of dividends and cash flows. The vast majority of Berkshire Hathaway’s (BRK-A ) stock investments and holdings generate large sums of annual cash flows. But with its massive size, Berkshire’s cash hoard has grown to record levels.
The question is what will Buffett do with it.
The answer might very well be to finally – and begrudgingly – hand it over to investors. That is, finally pay a dividend. And in the end, Berkshire Hathaway could become one of the biggest dividend growth stocks of all time.
Learn more about Buffett here.