Three Reasons to Sell Berkshire Hathaway Inc. (BRK.B) Stock

3. Berkshire Hathaway stock: low growth and no dividend
The final ding to an investment in Berkshire Hathaway is the fact that the company’s prospects for significant growth are hampered by its sheer size. Currently, Berkshire has a market cap of $190 billion, with $162 billion in revenue just last year, and $44 billion in cash and cash equivalents sitting in the bank. When you accomplish that kind of size, it is very difficult to invest in anything that could possibly yield market-beating returns.

Usually, when companies get to this size, they reward shareholders in the form of dividends. Not so for Berkshire Hathaway, however. The company has only paid one dividend in its history, and that was a $0.10 payout all the way back in 1967!

What’s a Fool to do?
These are all legitimate reasons to be concerned about owning Berkshire Hathaway Inc. (NYSE:BRK.B) stock. I have certainly committed the error of investing because of Buffett, rather than because I can understand all of the moving parts that are Berkshire. Although I’ll keep this in mind when reconsidering my holdings at year’s end, I am comforted by the fact that Jain is on board. And the slim chance for appreciation isn’t a big concern, as I’ve included Berkshire in my portfolio for its stability, rather than growth.

The article 3 Reasons to Sell Berkshire Hathaway Stock originally appeared on Fool.com and is written by Brian Stoffel.

Fool contributor Brian Stoffel has no position in any stocks mentioned. The Motley Fool recommends Berkshire Hathaway. The Motley Fool owns shares of Berkshire Hathaway.

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