Buffett Touts GOP Tax Cut Bill as 'Huge Tailwind' for Businesses

Audrey Hill
March 2, 2018

'Indeed, Wall Street "helpers" earned staggering sums.

Buffett said his goal is to make "one or more huge acquisitions", with Berkshire sitting on US$116bn in cash and government bonds. "After all, even a high-priced deal will usually boost per-share earnings if it is debt-financed". "In the meantime, we will stick with our simple guideline: The less the prudence with which others conduct their affairs, the greater the prudence with which we must conduct our own". Some Berkshire stock investments are made by deputies Todd Combs and Ted Weschler, who Buffett said together manage about $25 billion, up from $21 billion a year ago.

Warren Buffett is worth upwards of $86 billion, runs a $500-billion financial services company, is an avowed philanthropist and was a vocal supporter of Hillary Clinton in the 2016 U.S. presidential campaign.

The letter was considerably shorter than in recent years, a little over 8,000 words compared with more than 14,000 last year, and did not discuss major Berkshire stock holdings such as Apple Inc. and Wells Fargo & Co.

He became the controlling shareholder of Berkshire in the 1960s.

"He didn't say a lot about succession".

I'm sorry, but that is right out of one of those market-themed books of purportedly wise quotes you might find yourself thumbing through while you're waiting in line at Barnes & Noble wishing you had just ordered whatever it is you're waiting to pay for from Jeff Bezos. In January, he had narrowed down the list of people who could replace him to two veteran Berkshire executives, Greg Abel and Ajit Jain. Jain will now oversee all of the conglomerate's insurance businesses while Abel will oversee all of the conglomerate's non-insurance business operations. CEO Warren Buffett isn't going that far in his critique.

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After the stakes of Warren Buffed, next comes Wells Fargo (WFC), at $29.3 billion and ahead of Bank of America (BAC), at $20.7 billion.

He noted that new rules, under generally accepted accounting principles (GAAP), mean that the net change in unrealized investment gains and losses in stocks the company holds must be included in all net income figures it reports.

"During our 10-year bet, the 200-plus hedge fund managers that were involved certainly made tens of thousands of buy and sell decisions".

"Buffettdoesn't dwell very long on the politics", Smead said.

Succeeding in the stock market requires the discipline to act sensibly when markets do insane things.

Ironically, he also said that investors need to be willing to look "foolish", ignore mob fears and enthusiasms. "A willingness to look unimaginative for a sustained period - or even to look foolish - is also essential". At times, bonds are riskier than stocks.

Buffett, 87, also avoided dropping any hints about who will take the reins at Berkshire when he retires.

Other reports by MaliBehiribAe

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