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Buffett......I don't get it !
- Thread starter taodr
- Start date
From the above article:
Yet the pocketbook of a legendary value investor like Buffett would seemingly be enhanced by dividend tax reform, which he opposes. Same with President Bush's tax proposals in general. How do those who generally believe everyone talks their book explain Buffett's seemingly self-defeating stance on taxes?
Simple: It may not be self-defeating, after all.
In the 1980s, the IRS ruled investors must pay tax on "imputed interest" on zero coupon bonds and Treasury 'strips,'" recalled Bill King, principal and market strategist at M. Ramsey King Securities, a Burr Ridge, Ill.-based securities broker, and author of The King Report, a daily service for institutional clients. "Buffett then realized that the converse must also be true [and Berkshire Hathaway] issued zero coupon bonds and bought high-yielding preferred stocks with the proceeds."
By King's reckoning, Berkshire received the 85% tax exclusion on the dividends the corporation received and simultaneously was able to write off the interest on the zero coupon bonds it issued. "So, Buffett got a monstrous tax break by being short zero coupon bonds -- tax benefit of the imputed interest without paying it -- and got the 85% tax break on the dividends," he concluded, wondering: "Is this the real reason Warren is against the repeal of the double taxation of dividends?"
Ah, so maybe it's about self-interest after all. Whew, I was worried there for a second.
So, don't be fooled by Buffett's populist diatribe. Considering that he is so passionate against the dividend tax cut that he is willing to write an op-ed piece in the Post and trek up to Washington to lecture legislators, there's got to be more to it than some overwhelming sympathy for the ordinary American.
I'm all for the Oracle taking shrewd actions to benefit himself and his investments, but people here have got to call a spade a spade.
Buffet is a cross dresser......and if he cared so much about the little guy, the least he could do is at least one or two stock splits so a poor man can afford to buy one f-ing share of his berkshire hath......Can't the poor black share cropper get hsi expertise for say, Oh 100.00 per share????
Quote from TM_Direct:
Buffet is a cross dresser......and if he cared so much about the little guy, the least he could do is at least one or two stock splits so a poor man can afford to buy one f-ing share of his berkshire hath......Can't the poor black share cropper get hsi expertise for say, Oh 100.00 per share????
Berkshire Hathaway Class B shares, which track the Class A shares are currently trading at $2,400 per share. Get together with some of your poor friends and you can all chip in together for a share or two.
Quote from sempai:
Berkshire Hathaway Class B shares, which track the Class A shares are currently trading at $2,400 per share. Get together with some of your poor friends and you can all chip in together for a share or two.
can't he do a 10-1 split so the minimum wage workers at the shoe factory can buy 2 shares each????....