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(KTLA Los Angeles)   Buffett benefits bigly   ( ktla.com) divider line
    More: Obvious, Berkshire Hathaway, Buffett, Warren Buffett, Berkshire Hathaway Energy, hedge funds, Berkshire's operations, time Berkshire, new U.S. tax  
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1560 clicks; posted to Business » on 24 Feb 2018 at 4:00 PM (20 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



33 Comments     (+0 »)
 
View Voting Results: Smartest and Funniest
 
2018-02-24 12:25:16 PM  
$29 billion will buy a lot of saltshakers.
 
2018-02-24 12:33:22 PM  
Donate it! He's a great guy that has donated tons of money but this could be a game changer.
 
2018-02-24 12:37:02 PM  
Just sitting back, waiting for the Trump Credit Tweets
 
2018-02-24 12:43:24 PM  
$29B that could go into Job Corps, healthcare, education, training.

The US Government is just a lever that the plutocracy use to pry open the treasury.
 
2018-02-24 12:46:59 PM  

johnryan51: Donate it! He's a great guy that has donated tons of money but this could be a game changer.


Yep. And at least he was straight up honest about it.
Jeebus, we got so screwed over on that tax "reform." Steal from the poor and give to the rich, smh.
 
2018-02-24 01:13:49 PM  
Big Mister Buffet said 'Hey, tough it. I'm enjoying my hoards of pay.'
 
2018-02-24 01:46:22 PM  

The Flexecutioner: Big Mister Buffet said 'Hey, tough it. I'm enjoying my hoards of pay.'


There was a special on him on HBO.
He really is a super nice man.
 
2018-02-24 02:13:08 PM  
He noted that Berkshire didn't go on a buying "frenzy" and acquire a bunch of companies last year, mostly because there were no desirable options that came at a "sensible" purchase price.

They get a $30 billion windfall, and they already have more many than, literally, they know what to do with.

(That's literally literally, not figuratively literally.)

It's going to come down to five guys in Mecha suits with feet the size of cities fighting it out the rest of humanity toils to supply them with everything they need to build and operate giant Mecha suits.
 
2018-02-24 03:07:52 PM  
"This is going to cost me a fortune, this thing, believe me," Trump told supporters of the tax plan at a rally in late November. "This is not good for me.... I think my accountants are going crazy right now."
 
2018-02-24 03:49:17 PM  
Buffett benefits bigly

img.fark.netView Full Size
 
Xai [TotalFark] [BareFark]
2018-02-24 03:51:27 PM  
This is the problem with trickle down economics. Warren buffet gains $29b and doesn't spend it all at once because he wants to invest sensibly, so we see a small, nigh negligible economic gain from his actions.
 If you gave that money to middle-to high income people it would be invested right away, with some spent on luxuries and hard investments like property.
 
2018-02-24 04:07:06 PM  
 
2018-02-24 04:14:05 PM  
Buy waffles.
 
2018-02-24 04:19:29 PM  

johnryan51: Donate it! He's a great guy that has donated tons of money but this could be a game changer.


IIRC, Bill Gates gets all his money when he dies.
 
2018-02-24 04:29:43 PM  

mcreadyblue: johnryan51: Donate it! He's a great guy that has donated tons of money but this could be a game changer.

IIRC, Bill Gates gets all his money when he dies.


Gates' foundation
 
2018-02-24 04:30:13 PM  
That kind of money could do a lot of good this year with the primaries and mid-terms, but he's a business man and trying to do the whole Thomas Wayne "nearly bankrupt the company to save his city" thing might get him fired. It is a hard sell that shifting wealth from the rich to the poor will still benefit the rich once all the poor immediately spend that money, so it will take the right people and companies to lead the way. I hope that is what he, Bezos, and Dimon are going to attempt with their non-profit healthcare whatever-it-ends-up-being.
 
2018-02-24 05:17:29 PM  

ecmoRandomNumbers: $29B that could go into Job Corps, healthcare, education, training.

The US Government is just a lever that the plutocracy use to pry open the treasury.


Kleptocrats want a government weak enough to let them do what they want, and strong enough to fark over everybody else.

img.fark.netView Full Size
 
2018-02-24 06:03:06 PM  

johnryan51: Donate it! He's a great guy that has donated tons of money but this could be a game changer.


It's not like he personally just got $29 billion.  His company, which he only owns about 25% of, made that money.

Basically all of that has already been donated to the Gates Foundation when he dies.
 
2018-02-24 06:05:18 PM  

Omnivorous: Buffett can't even find a place to put the cash.  He's buying about 4% of U.S. treasuries EVERY WEEK:
https://www.wsj.com/articles/playing-w​ith-100-billion-warren-buffett-is-gian​t-trader-of-u-s-treasury-bills-1519381​801?mod=searchresults&page=1&pos=1


Have you seen CAPE ratios lately?  This is not the kind of market that Berkshire makes big deals in.
 
2018-02-24 06:38:47 PM  
wait, so is the argument:

Warren Buffet was against the tax cut
Warren Buffet benefited from the cut
Therefore Buffet is a hypocrite

Seriously?  Is that the arguement?
 
2018-02-24 07:06:11 PM  

BMFPitt: johnryan51: Donate it! He's a great guy that has donated tons of money but this could be a game changer.

It's not like he personally just got $29 billion.  His company, which he only owns about 25% of, made that money.

Basically all of that has already been donated to the Gates Foundation when he dies.


He's down to 17%, gave more shares away to 2 or 3 other charities.
 
2018-02-24 07:08:04 PM  

bigdanc: wait, so is the argument:

Warren Buffet was against the tax cut
Warren Buffet benefited from the cut
Therefore Buffet is a hypocrite

Seriously?  Is that the arguement?


Well , most of us say he's a great philanthropist and all around good guy.
 
2018-02-24 08:25:08 PM  
Lets do a Berkshire Hathaway Job count over the next 36 months and see how much each one cost our Republic.
 
2018-02-24 08:59:42 PM  

texanjeff: Lets do a Berkshire Hathaway Job count over the next 36 months and see how much each one cost our Republic.


I don't think you understand what Berkshire Hathaway is.
 
2018-02-24 09:14:43 PM  

johnryan51: The Flexecutioner: Big Mister Buffet said 'Hey, tough it. I'm enjoying my hoards of pay.'

There was a special on him on HBO.
He really is a super nice man.


Down to Earth, too.

Lives in the same house he bought in 1958 for $31,500
Drives his own Cadillac
Stops at McDonalds for breakfast, never spending more than $3.17
Doesn't have a computer on his desk, and only has sent one email in his entire life

He does own a private jet, which he named "The Indefensible". (he is a billionaire, after all)
 
2018-02-25 12:13:43 AM  

BMFPitt: texanjeff: Lets do a Berkshire Hathaway Job count over the next 36 months and see how much each one cost our Republic.

I don't think you understand what Berkshire Hathaway is.


Do you think they can't indirectly create some jobs?
 
2018-02-25 12:16:15 AM  

dustman81: johnryan51: The Flexecutioner: Big Mister Buffet said 'Hey, tough it. I'm enjoying my hoards of pay.'

There was a special on him on HBO.
He really is a super nice man.

Down to Earth, too.

Lives in the same house he bought in 1958 for $31,500
Drives his own Cadillac
Stops at McDonalds for breakfast, never spending more than $3.17
Doesn't have a computer on his desk, and only has sent one email in his entire life

He does own a private jet, which he named "The Indefensible". (he is a billionaire, after all)


You realize that this is the epitome of how trickle down economics does not work?

No new homes to build

No new cars to build

No new restaurants created

That's why you have to tax him for society to benefit from what he has "created"
 
2018-02-25 03:31:34 AM  

bigdanc: wait, so is the argument:

Warren Buffet was against the tax cut
Warren Buffet benefited from the cut
Therefore Buffet is a hypocrite

Seriously?  Is that the arguement?


It's worse than that.  Read the article.  No quote at all from him or quote from any report from his company saying anything about the tax code change.  Why?  Because the headline and article are complete BS.  The implication is that the tax reform somehow gave him a $29 BILLION Tax Break in 2017.  THAT'S NOT POSSIBLE.  They don't take effect until 2018.  So it will impact earnings on companies in 2018.  Better yet, it won't impact the taxes he makes in 2018 either because effectively ALL of his income is from capital gains off the stock in his company which is just a holding company.  That tax was not change.  ZERO.  NOTHING.  COMPLETELY FALSE.

So what is the article really about?  Dunno....but the assertion is completely false when it comes to...well....the assertion.  I have not researched the stock, but I'm going to guess that since the market cap of Berkshire Hathaway is $500 BILLION then what we are talking about is there has been a $29 BILLION shift up in market cap of the company since the reform passed.  i.e. 5.8%.  Big Deal.

So let's carefully parse the words of the article.  They did not LIE per se.  But used carefully parsed words to imply.  What was actually said:

Headline:  "Warren Buffett Company Gains $29 Billion From New Tax Code"  Then similar quotes in the 'article' which are frankly repeated over and over on various websites but are all implying the wrong thing because the writer has no base understanding of the issue.  Our Fark article has this quote:

FTA:  "A large portion of our gain did not come from anything we accomplished at Berkshire," he wrote, adding that about $29 billion of that $65.3 billion gain came from changes to the tax law.

Farkers reaction:  @#$GJLKSDF Republicans@!@@@@.  $29 Billion Tax Cut for Warren Buffett!

Well actually his taxes will go up.  Here's why.  Because he didn't get a tax cut AT ALL.  Read the actual truth here:

https://www.usatoday.com/story/money/​2​018/02/24/warren-buffett-balked-big-ac​quisitions-2017-because-high-prices/36​6916002/

Which points out that these numbers are not profits or taxes.  In fact Berkshire Hathaway doesn't make money per se.  It's a holding company.  All it does is own stock in companies, cash, US Treasuries, and some whole companies.  i.e. it is an investment company.  Yes somewhere in that mess it's an insurance company but it's an investment company.  It makes money by collecting dividends, selling stock, buying stuff, lending money, etc.  For instance he lent $10 Billion once to GE in the financial crisis then got paid interest plus got all the money back plus got stock warrants which had a strike price.  When the stock went value of the company went up he exercised those and made several billion more dollars.  Most of that gets paid out in one way or another through capital gains not corporate income tax.  Hence why every year he says his effective tax rate is so low.  People are not corporations.  He does not make an income from a corporation as salary.  He just owns the stock of his company so only makes whatever gains his company makes on stock value.  Thus he makes exactly per share the same as everyone else who is a stock holder in Berkshire Hathaway.

TRUTH:  So then the USA Today points out that the $65 Billion is the gain in the market capitalization of Berkshire Hathaway.  But $29 Billion of that came just in December after the tax law.  The market capitalization of the company is $500 Billion.  So $29 Billion is roughly 6%.  Not a giant increase.  He owns nowhere near 100% of the company but rather his net worth is under $100 Billion so roughly he owns 20% of his company and other shareholders own the rest.  So with a basic swag at that then figure 20% of the $29 Billion increase in December went to his personal wealth.  i.e. $5.8 Billion.  Will he pay taxes on that?  Only if he sells stock which he won't.  So what will he pay taxes on in 2018 and will they go up or down?  Impact on Taxes:  Up.  Why?  Because the reason the stock price is going up is anticipation that the companies the Berkshire Hathaway is invested in will all have more after tax income.  I.e. the entire portfolio of companies he owns are expected to have higher post tax incomes. Besides the overall stock value increase what will happen is that a) many of those companies pay dividends (he loves those) so they are expected to pass more of their profits out as dividends.  And if he makes any sales of stocks in the portfolio of companies Berkshire holds then presumably their values are much higher due to the tax cuts in 2018 (i.e. they are the ones that directly benefit in their income statements) thus Berkshire would get more cash from that deal.  He didn't get a tax cut at all and won't in 2018 at all.  The stock value of his company increased.  His income will go up due to most of his income being derived from dividend type income.  Thus his taxes will go up because income will go up.  Congress did not reduce the capital gains/dividends taxes for wealthy investors.  Buffet's rate stayed the same.
 
2018-02-25 08:22:55 AM  

Xai: This is the problem with trickle down economics. Warren buffet gains $29b and doesn't spend it all at once because he wants to invest sensibly, so we see a small, nigh negligible economic gain from his actions.
 If you gave that money to middle-to high income people it would be invested right away, with some spent on luxuries and hard investments like property.


 Now go try to explain that to the trailer park, who are convinced that a rising tide lifts all boats as long as we give the rich more tax breaks.
 
2018-02-25 09:21:35 AM  
How did Warren Buffet gain $29 billion in 2017 from a tax code that takes effect in 2018? Does he have access to Obama's time machine?
 
2018-02-25 11:26:58 AM  

dustman81: johnryan51: The Flexecutioner: Big Mister Buffet said 'Hey, tough it. I'm enjoying my hoards of pay.'

There was a special on him on HBO.
He really is a super nice man.

Down to Earth, too.

Lives in the same house he bought in 1958 for $31,500
Drives his own Cadillac
Stops at McDonalds for breakfast, never spending more than $3.17
Doesn't have a computer on his desk, and only has sent one email in his entire life

He does own a private jet, which he named "The Indefensible". (he is a billionaire, after all)


You left out disiwned his granddaughter.
 
2018-02-25 12:14:04 PM  
Happy owner of BRK.A here!
 
2018-02-25 02:52:39 PM  

stuhayes2010: dustman81: johnryan51: The Flexecutioner: Big Mister Buffet said 'Hey, tough it. I'm enjoying my hoards of pay.'

There was a special on him on HBO.
He really is a super nice man.

Down to Earth, too.

Lives in the same house he bought in 1958 for $31,500
Drives his own Cadillac
Stops at McDonalds for breakfast, never spending more than $3.17
Doesn't have a computer on his desk, and only has sent one email in his entire life

He does own a private jet, which he named "The Indefensible". (he is a billionaire, after all)

You left out disiwned his granddaughter.


You left out what she did to become disowned
 
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