Oct 092017
 

I am quoted in TheStreet on the proposed tax cut implications for Warren Buffett.

The combination of a reduction on taxes on future earnings, which will add billions of dollars to after-tax income, and Berkshire’s deferred tax liability on its $65 billion of unrealized capital gains at end of second quarter would be substantially reduced, resulting in an increase of at least 10% to 15% in Berkshire’s price per share, said David Kass, a finance professor at the University of Maryland’s Smith School of Business in College Park.

 

“This would then result in a proportional increase of at least $7 to $10 billion in Buffett’s wealth,” he said. “It is important to note, that Warren Buffett, who has approximately 99% of his wealth invested in Berkshire Hathaway, plans to donate all of his shares in Berkshire to charity, primarily the Bill and Melinda Gates Foundation.”

 Posted by at 11:25 am

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