One of best known investors in the world is Warren Buffett and there is very, very good reason for the recognition – his rates of return on his investments have been great. Mr. Buffett offers advice – it is worth listening to and everyone who has a long term success is offered goodwill. To invest in Berkshire Hathaway you have to give Warren Buffett the benefit of doubt and to question him has been fruitless. In an article by Tara Lachapelle of Bloomberg News titled Can investors still trust Berkshire after Buffett goes? is worth considering. Mr. Buffett is 86 years old and his best friend and partner Charlie Munger is in the same age group. What would happen to the company if one or both died or became increasingly less active in the company? No doubt there are very highly respected senior management within the organization, but Berkshire has always had Buffett and Munger as the prime decision makers. The reason the issue has come up is unlike most publicly traded companies, Berkshire does not release as much information as the average publicly traded company. From an accounting perspective the companies are grouped together so you have an idea of how things are but not the true picture. Mr. Buffett because of his long success, can get away with it because of the long success.

Linking to dividend paying stocks, when a company has a long term success they are often scrutinized less because of the goodwill we as investors give it and there maybe nothing wrong with that. When management changes, the same goodwill evaporates because we know and trust management less, even though they maybe continuing with the same good policies and principles as before. One day it will happen to Berkshire, but in the meantime learn from Mr. Buffett and be aware when management changes for there will be an effect.

There are more questions than answers, till the next time – to raising questions.