this textile company was an ideal vehicle for making investments. With Berkshire Hathaway’s stock, Buffett had a publicly traded corporation with captive capital. The benefits of this corporate structure for managing money are significant. In his previous partnership, if shareholders redeemed their shares, the money would come right out of the till. Now, when shareholders sell their shares in Berkshire Hathaway, that doesn’t affect its available capital. Capital doesn’t leave the corporate shell unless Buffett pays a dividend.
