Matthew Emmert is arguing that Berkshire Hathaway should pay a dividend.
Buffett is getting older, and though he says his doctor tells him his health is in the top 1% of men his age, he'll have to retire at some point. That may be five or 10 years from now — God willing, it will be longer. But, when this happens, it's even more unlikely that the new managers of the company will be able to put such a substantial amount of cash to work.
I mean really, investors of Buffett's caliber don't come around every day, and in the hands of lesser managers, cash seems to find its way into projects with diminishing returns, especially when said managers are under enormous pressure to live up to their god-like predecessor.
Berkshire might be too large to find appropriate opportunities in the equity market, but its shareholders aren't. Pass those profits along, and let us put them to work. I'm no oracle, but I'm pretty sure we can do better than 1%.
I think Buffett will have to do this sooner or later, although he claims he never will. Size is against him though. It is difficult to find a good return when you have 27 billion dollars to stash somewhere.