Buffett Sets Stage for Massive Buyback, Dividends After Decade

Warren Buffett, whose Berkshire Hathaway Inc. is sitting on about $63 billion in cash, told shareholders to expect a dividend or stock buybacks, as long as they’re prepared to hold the shares for a decade or more.

“Eventually -- probably between 10 and 20 years from now - - Berkshire’s earnings and capital resources will reach a level that will not allow management to intelligently reinvest all of the company’s earnings,” Buffett wrote in his annual letter to shareholders Saturday. “Our directors will need to determine whether the best method to distribute the excess earnings is through dividends, share repurchases or both.”