{"id":576264,"date":"2017-10-30T15:36:14","date_gmt":"2017-10-30T15:36:14","guid":{"rendered":"http:\/\/juniorminingnews.com\/?p=576264"},"modified":"2017-10-30T15:36:14","modified_gmt":"2017-10-30T15:36:14","slug":"the-other-reason-buffett-is-the-worlds-third-richest-man-2","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=576264","title":{"rendered":"The Other Reason Buffett Is the World\u2019s Third-Richest Man"},"content":{"rendered":"

By Alexander Green<\/a><\/span> I hate to call Berkshire Hathaway (NYSE: BRK-B) Chairman and CEO Warren Buffett a hypocrite.<\/p>\n

I truly respect and admire the man, something I can’t say about other uber-wealthy investors I know.<\/p>\n

I appreciate his plainspoken ways, his insightful views, his well-informed opinions and his witty annual reports.<\/p>\n

I have learned much from him over the last 30-plus years. His investment philosophy even informs much of The Oxford Club’s approach.<\/p>\n

Like Buffett, we don’t waste time forecasting the economy or trying to outguess the market.<\/p>\n

Like him, we focus on evaluating businesses. We look for solid, well-managed companies that are undervalued based on their earnings prospects.<\/p>\n

In many ways, Buffett has been a beacon during my professional life as a researcher, money manager and financial writer.<\/p>\n

Yet I can’t help but cringe whenever he talks about taxes\u2026 as he did on CNBC recently.<\/p>\n

Asked about the tax reform plan that is working its way through Congress, he repeated his mantra: Neither he nor U.S corporations need a tax break.<\/p>\n

He’s absolutely right, of course.<\/p>\n

For him. Not the rest of us.<\/p>\n

Let’s start with his seemingly magnanimous insistence that he doesn’t need an income tax cut.<\/p>\n

Buffett has a net worth of $81 billion, give or take a few hundred million, depending on what Berkshire shares are doing today.<\/p>\n

Yet he collects an annual salary of just $100,000, as he has for the past 25 years.<\/p>\n

Most of us know plenty of folks who earn more than this. A cop married to a teacher has a higher household income.<\/p>\n

Cutting taxes for them \u2013 as for most Americans \u2013 would be enormously beneficial. They could spend more, save more, invest more, send their kids to a better college or pay down their mortgage.<\/p>\n

But what effect would an income tax reduction have on Buffett’s financial picture? The answer can be found many digits to the right of the decimal point.<\/p>\n

The United States is in the uncompetitive position of having the highest corporate tax rate in the developed world. Yet Buffett doesn’t think we need a corporate tax cut either.<\/p>\n

Perhaps that’s because he’s a wizard at tax avoidance.<\/p>\n

[iu-adbox]<\/p>\n

Last year, for example, Berkshire Hathaway saved $1 billion in taxes when it offloaded 52 million Procter & Gamble (NYSE: PG) shares for Duracell, worth $4.7 billion.<\/p>\n

Using a complicated financial trick, Buffett persuaded the IRS to treat the transaction as a tax-free gain.<\/p>\n

Smart move.<\/p>\n

When Burger King took over Canada’s Tim Hortons, Buffett arranged an inversion. That means Burger King deserted the U.S. and became a subsidiary of the Canadian company.<\/p>\n

Not particularly patriotic, but that maneuver saved many more millions in taxes.<\/p>\n

Berkshire shareholders are rightly pleased that Buffett is doing everything in his power to maximize profits and minimize taxes.<\/p>\n

But why, exactly, should those of us without an army of accountants and tax attorneys pay more?<\/p>\n

Warren Buffett is one of the world’s richest individuals precisely because his fortune \u2013 bigger than the GDP of some countries \u2013 is almost entirely untaxed.<\/p>\n

This is no accident. You don’t get rich by being stupid.<\/p>\n

Buffett says his favorite holding period for stocks is \u201cforever.\u201d If you don’t realize your gains, \u2026read more<\/a> <\/p>\n

Source:: Investment You<\/a><\/p>\n

The post <\/a>The Other Reason Buffett Is the World’s Third-Richest Man<\/a> appeared first on Junior Mining Analyst<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Alexander Green I hate to call Berkshire Hathaway (NYSE: BRK-B) Chairman and CEO Warren Buffett a hypocrite. I truly respect and admire the man, something I can’t say about other uber-wealthy investors I know. I appreciate his plainspoken ways, his insightful views, his well-informed opinions and his witty annual reports. I have learned much […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[4],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/576264"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=576264"}],"version-history":[{"count":0,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/576264\/revisions"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=576264"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=576264"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=576264"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}