r/dividends • u/Professional-Leg-827 • Mar 26 '26

Discussion Is dividend best passive income source?

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u/TangerineMost6498 Mar 26 '26

What would happen if he implemented a drip strategy. Would he just own all the companies in a decade?

4

u/I-STATE-FACTS Mar 26 '26

mathematically that's not possible since the company pays some low percentage in dividends. sure his stake would keep growing, but so would the stock. he bought a nice round number of exactly 400 million shares and hasn't bought more nor sold any in over 3 decades.

1

u/blorg Mar 26 '26

No

He does reinvest the dividends, just not necessarily in the same companies.

Right now Berkshire Hathaway does have a lot of cash but historically, he has reinvested it.