EppsNet Archive: Warren Buffett

“I Need to Pay Higher Taxes,” Says Bill Gates

If Bill Gates really believed that, he could decide how much he “should” pay, subtract it from what he’s required to pay, and send Uncle Sam a check for the difference. Which he doesn’t do. Gates was talking about taxes in the context of the recent tax bill not being progressive enough for his liking. “People who are wealthier tended to get dramatically more benefits than the middle class or those who are poor,” he said. Bill Gates is as smart as anyone I can think of, so I think his remarks are disingenuous rather than uninformed. People who are “wealthier” (“people with higher incomes” would be more accurate) benefit more from income tax cuts because they pay dramatically more in taxes to begin with (see chart). For example, the top 1 percent of earners pay almost as much into the federal income tax pool (38 percent) as the bottom… Read more →

EppsNet Investment Tips

Shares of Warren Buffett’s firm Berkshire Hathaway soared 20% in 2016, helping to boost Buffett’s personal fortune by $12.3 billion – more than any other billionaire in the United States. — Forbes Buy and hold . . . buy and hold. Read more →

I Don’t Understand What Warren Buffett is Talking About

In an op-ed for the New York Times, Warren Buffett argues that higher taxes won’t keep the super-rich from trying to make money: Suppose that an investor you admire and trust comes to you with an investment idea. “This is a good one,” he says enthusiastically. “I’m in it, and I think you should be, too.” Would your reply possibly be this? “Well, it all depends on what my tax rate will be on the gain you’re saying we’re going to make. If the taxes are too high, I would rather leave the money in my savings account, earning a quarter of 1 percent.” Only in Grover Norquist’s imagination does such a response exist. — A Minimum Tax for the Wealthy – NYTimes.com Really, Warren? It’s an investment, right? It’s not a sure thing. It’s not a giveaway. I’m being asked to put money at risk. That’s the difference between… Read more →

Let’s Get Fiscal

A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful. — Warren Buffett BIG DEAL! I said the same thing last week! Who needs Warren Buffett when you have a good dog? Talking about Warren Buffett is making me hungry because his name looks like “buffet.” I wish someone would open an all-you-can-eat buffet restaurant for dogs. I would invest in that . . . — Lightning Read more →

The Forgotten Man, Ted Kennedy and Warren Buffett

As Ted Kennedy has spent virtually all of his personal wealth on personal consumption of mansions, private jets, women, booze, etc., any help that he has provided to Americans has come at the expense of the “forgotten man” paying taxes. Ted’s own contributions to charity have been minimal (source). Let’s compare to Warren Buffett. . . . Buffett has spent a negligible portion of his $60+ billion in personal wealth on personal consumption, giving almost all of it away to charity. Perhaps Buffet is “the forgotten man.” He creates jobs by the thousands. He pays taxes by the $billions. He consumes very modestly considering his means. Yet Buffett is not considered a hero here in Massachusetts, at least. — Philip Greenspun Read more →

The Individual Lemming

John Maynard Keynes said in his masterful The General Theory: ‘Worldly wisdom teaches that it is better for reputation to fail conventionally than to succeed unconventionally.’ (Or, to put it in less elegant terms, lemmings as a class may be derided but never does an individual lemming get criticized.) — Warren Buffett Read more →

OC Real Estate Report

I recently sold a house in Laguna for $3.5 million. It was on about 2,000 square feet of land, maybe a twentieth of an acre, and the house might cost about $500,000 if you wanted to replace it. So the land sold for something like $60 million an acre. — Warren Buffett Read more →

Warren Buffett Gets the Last Laugh

Warren Buffett published his annual letter to Berkshire Hathaway shareholders this week: Our gain in net worth during 2003 was $13.6 billion, which increased the per-share book value of both our Class A and Class B stock by 21%. Over the last 39 years (that is, since present management took over) per-share book value has grown from $19 to $50,498, a rate of 22.2% compounded annually. Read more →