Warren Buffett says Republican tax cut 'delivered' $29bn to his company

Warren Buffett visits the BNSF booth before the Berkshire Hathaway annual meeting in Omaha

Warren Buffett visits the BNSF booth before the Berkshire Hathaway annual meeting in Omaha

Buffett told investors that Berkshire Hathaway made a $65.3 billion net gain in 2017 - but "only $36 billion came from Berkshire's operations".

Warren Buffett wants to dispel a common investing myth.

'The remaining $29 billion was delivered to us in December when Congress rewrote the US Tax Code'. They are struggling to put that money to work because of a "purchasing frenzy" by deal-hungry chief executives employing cheap debt that pushed "prices for decent, but far from spectacular, businesses" to "an all-time high".

On acquisitions, too-high prices were a barrier to almost all deals Berkshire looked at previous year, says Buffett.

"[Investing partner] Charlie [Munger] and I believe that from time to time Berkshire will have opportunities to make very large purchases", Buffett wrote.

He also leveled criticism at what he called the "can-do" type of Wall Street CEO, who he said can be over eager to justify gobbling up another company.

Buffett had a mixed reaction to the tax overhaul passed by Congress past year.

Buffett has always been a critic of the high fees charged by hedge fund managers, especially when they continue to charge those fees during periods of poor performance.

This Man Now Owns Nearly 10 Percent Of Mercedes-Benz's Parent Company
Geely has not commented publicly on the goal of its investment, but is thought to be interested in Daimler's battery technology. Kuwait's sovereign wealth fund owned about 6.8 percent of Daimler's shares as September 30, according to Thomson Reuters data.

Known to fans as "the Oracle of Omaha", Buffett, 87, has suggested United States stocks are probably the best bet over time, encouraging people to make easy choices and stick with them, eschewing high-fee fund managers, for instance.

Unlike some letters of years past, Buffett steered clear of commenting on the overall American economy, and he didn't wade into politics.

Buffett also warned long-term investors including pension funds, college endowments and "savings-minded individuals" that even with USA stock prices near record highs, it would be a "terrible mistake" to assume bonds are safer.

Buffett declared in his 2015 annual shareholder letter that he has found the "right person", but he didn't offer any further details.

Warren Buffett is stepping down from the board of directors of Kraft Heinz Co.

Last month, he gave two top executives Ajit Jain and Gregory Abel greater oversight of Berkshire's operating businesses, cementing their status as the front runners to succeed Buffett atop the conglomerate.

The investor shared the data which revealed Berkshire Hathaway's stock declined by a range of 37 percent to 59 percent multiple times over the last five decades.

Recommended News

  • Bayern Munich's Arjen Robben displeased with coach Jupp Heynckes decision

    Bayern Munich's Arjen Robben displeased with coach Jupp Heynckes decision

    Besiktas had an impressive showing in the group stages, and the team now sports a seven-match winning streak in the competition. But Heynckes remains wary of of Turkish side Besiktas and is keen for complacency not to be their undoing.
    FluMist spray vaccine is OK next season — CDC panel

    FluMist spray vaccine is OK next season — CDC panel

    It's been off the USA market since then, although it is still used in other countries, including Canada and the European Union. For that reason, some kids, such as those with asthma, usually can not be administered FluMist, anyway.
    Controversial-turned- official Trudeau's India visit, Watch Finally Modi hugged PM Trudeau

    Controversial-turned- official Trudeau's India visit, Watch Finally Modi hugged PM Trudeau

    The Canadian Prime Minister has been under pressure throughout his tour to answer Indian concerns about Sikh separatism in Canada. Prime Minister Narendra Modi warmly received Trudeau, along with his wife Sophie and children Xavier, Ella-Grace, and Hadrien.
  • Barclays reinstates dividend despite £1.9bn loss

    Barclays reinstates dividend despite £1.9bn loss

    Barclays bosses said after the results were posted that the bank would take a £127m hit from Carillion's failure. While Barclays had an attributable loss of nearly £2 billion, pre-tax profits rose by 10% to £3.5 billion.
    Major New Study Finds Antidepressants Really Do Work

    Major New Study Finds Antidepressants Really Do Work

    The FDA demands pharmaceutical companies provide data on all the clinical trials they sponsor-including unpublished trials. However, this does nothing to diminish the merit of the study. "The choice will need to be made by doctor and patient".
    Airbnb wants to be 'for everyone' with new categories, premium tiers

    Airbnb wants to be 'for everyone' with new categories, premium tiers

    He also announced the creation of a new store for Superhosts, which would give them exclusive pricing on smart home devices. Guests can therefore have a peace of mind that these listings are guaranteed to be of excellent quality.
  • Eugenie Bouchard wins process against USTA!

    Eugenie Bouchard wins process against USTA!

    She was seeking damages for her physical and emotional suffering in the lawsuit , as well as lost earnings on and off the court. She is now ranked 116th, well outside the ranking cut off for the main draw, but said she was hoping to receive a wild card.
    Growing Scandal Forces Australia's Deputy Prime Minister To Resign

    Growing Scandal Forces Australia's Deputy Prime Minister To Resign

    Mr Joyce is now facing a sexual harassment allegation that acting prime minister Mathias Cormann described as "very serious". Two-thirds of voters want Mr Joyce to resign over the affair, according to the Australian newspaper's Newspoll.
    Volcano spews ash 5km into the sky

    Volcano spews ash 5km into the sky

    Mount Sinabung sits on the Pacific Ring of Fire, a seismic activity belt stretching around the Pacific Ocean basin. The eruption caused several earthquakes and showered nearby villages with small rocks, reported Reuters .
  • Thursday weather: Winter weather advisory in effect until 10 am

    Thursday weather: Winter weather advisory in effect until 10 am

    ADOT advised travelers headed to the Grand Canyon to allow plenty of extra travel time because of snow and limited visibility. The forecast calls for clear skies on Friday but another chance of snow for the weekend and into next week.
    Qatar Airways receives first A350-1000 order from Airbus

    Qatar Airways receives first A350-1000 order from Airbus

    But sales of the 777-300ER have picked up, and Boeing is working on plans to leapfrog the A350-1000 with an upgraded 777X boasting over 400 seats.
    Japanese 'Baby Factory' Man Gains Custody Of 13 Surrogate Children

    Japanese 'Baby Factory' Man Gains Custody Of 13 Surrogate Children

    Shigeta's case, along with several others, helped usher in a Thai law prohibiting commercial surrogacy for foreign clients. Surrogacy agencies quickly migrated to neighbouring Cambodia, who followed suit and barred the industry in 2016.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.