tiptrot.com
tiptrot.com October 19, 2017


A huge tax cut for guys like me

14 May 2017, 03:13 | Cedric Leonard

The topic arose at Berkshire Hathaway's shareholder meeting in Omaha, where Buffett talked about his struggles to find ways to deploy the company's enormous hoard of more than $90 billion in cash, at a time when it has been hard to find worthy investments at an attractive price. "But they didn't act".

"If you go to a dentist, if you hire a plumber, in all the professions, there is value added by the professionals as a group compared to doing it yourself or just randomly picking laymen", Buffett said.

Asked why Berkshire Hathaway bought Apple stock, Buffett said, "The shares when we bought them at least were much more reasonable in relation to current earnings". He also said rising health care costs, rather than high taxes, were the biggest drag on US businesses.

"They may become like cattle cars", he said, "but a significant percentage (of passengers) would rather be treated that way and fly for X than have far more leg room (and other benefits) and fly for X plus 25 percent".

Despite softer sales in the most recent quarter, consumer loyalty to the iPhone is "huge", Buffett said.

"We need a money mind as CEO", said Buffett, who has no plans to retire.


The potential in India is incredible now, Buffett said. The party's leadership has promised that the new American Health Care Act, which faces a likely overhaul and uncertain passage in the Senate, would address growing health care costs.

In a Monday appearance on CNBC's "Squawk Box", the billionaire investor said that if there is "one clear-cut message" from the GOP health care bill, it is: "We are going to cut the hell out of taxes for the rich on investment income". "And when there's a tax cut, either the deficit goes up or they get the taxes from somebody else".

And if Berkshire does decide to pay dividends, it would have to commit to maintaining that payout over time, Buffett said, as cutting it could have disastrous consequences for the company's share price. "So they have gained a 5- or 6-point advantage", he said. He added that healthcare costs have rose much faster in the US than the rest of the world and warned it will "go up a lot more". He said the company had too much cash it could not reasonably deploy.

He had long disdained the industry, which had gone through many bankruptcies, but said he is confident it will not resort to "suicidally competitive" pricing strategies that could spell doom.

Information for this article was contributed by Noah Buhayar, Laura J. Keller, Jordyn Holman and Katherine Chiglinsky of Bloomberg News; and by Josh Funk of The Associated Press.



Other News

Trending Now

Great White Sharks Spotted Off California Coast Featured
With more and more shark sightings off the Long Beach coast, beachgoers are being warned to enter the water at their own risk. A woman, 33, was attacked by a shark as she swam in the Pacific Ocean near San Onofre State Beach.

16-foot python wrangled on camera in Florida Everglades
While Florida is well, Florida, the invasion of Burmese pythons in the Everglades National Park is a huge problem. Crum said he believed the snake was pregnant and perhaps otherwise injured when he walked up on it.

Tech athletics programs continue to excel in NCAA Academic Progress Rate program
On a sport-by-sport basis, the Marshall football program's multi-year score of 968 is above the national average of 966. This year's multi-year rate was an improvement over the previous year for the fourth consecutive year.

Police chief, 2 nursing home employees killed; gunman dead
A crisis team was on the scene to help assist those officers, as well as the residents in the facility and other employees. Kathy Rogers, who owns The Depot Thrift Shop in downtown Kirkersville , said she heard multiple gunshots Friday morning.

Comey Should Lead US Senate's Russia Probe - Intelligence Committee Member
The move sparked immediate accusations of political interference, with Republicans as well as Democrats expressing dismay. The spokeswoman said that Sessions and Rosenstein came to Trump at a meeting on Monday with concerns about Comey.

Don't call me Caitlyn: Baby name plunges in popularity
In 1934, when Donald hit its apex as a name for American boys, 30,406 babies were named Donald. The most popular baby names for 2016 are pretty familiar: Noah for boys and Emma for girls.

Trump Ally Roger Stone Says He Won't Testify Privately on Russian Federation
At another point, Stone called the Russian investigation "a scandal without evidence". When asked if he had urged Trump to fire Comey, Stone wouldn't comment.

British hospitals hit by suspected 'ransomeware' cyber attack
The U.K.'s National Cyber Security Center says it's working with both the digital office of the NHS and law enforcement. The hackers are reportedly exploiting a critical vulnerability (MS17-010) that first received a patch on 14 March.

Jordanian stabber shot dead in Jerusalem
According to Ma'an documentation, the Palestinian was the 22nd to have been killed by Israelis since the beginning of the year. President Donald Trump has vowed to try and broker a historic peace deal to end the Israeli-Palestinian conflict.

Woman arrested for 'running GOP congressman off the road'
According to WMC , the woman posted details of the encounter on Facebook, which is how she was found. Weakly County Sheriffs arrested Wendi Wright, 35 , on Thursday for a heated encounter with GOP Rep.