Cost of capital

[ander]

Does anyone know the formula that Berkshire charges its managers for incremental capital or the credit they’re given for the capital they return to the parent? I’m speaking of the operating cos.

[MarioP]

https://books.google.ca/books?id=ieLS_WwUmmwC&pg=PA93&lpg=PA93&dq=how+much+buffett+charge+for+capital+to+his+subsidiaries&source=bl&ots=4gfzGfisJg&sig=ACfU3U3vKBT6P8--I_YNKpf5DZMd8be7Qg&hl=fr&sa=X&ved=2ahUKEwigh_fgmrnpAhXhmeAKHWvzA5MQ6AEwAHoECAoQAQ#v=onepage&q=how%20much%20buffett%20charge%20for%20capital%20to%20his%20subsidiaries&f=false

 

P. 93 if it doesn’t open there. Around 15%.

 

 

[CapriciousCapital]

Surely it’s less than 15% now with interest rates near zero and over 100 billion in cash with no opportunities.