Friday, May 25, 2012

Warren Buffett, Tax Policy and Cherry Coke


I was recently asked on the social media website Quora.com/Bill-Foote, how can someone hold Warren Buffet's values/beliefs... and still have $45 billion?  The question was specifically in reference to his beliefs on higher taxes.

Most of the answers flowing in were anti-Warren in sentiment.  Mine was not.  Warren Buffett is one of my all time heroes.  The man is a genius and I have been reading about him and studying his every move since I first learned what a stock was back in High School.  Nobody can argue his track record.

As to the question, the problem Sir Buffett faces on taxes is a conflict of interest.  His beliefs may very well be genuine about what sort of tax structure will benefit the majority of Americans.  However, the majority of Americans do not own a share of BRK:A, which was last trading at the lowly sum of $121,450 per share.

So while Warren may quip about taxes needing to be higher for the rich, which make up most his shareholders, it is akin to sneaking in a game of online bridge with good friend Bill Gates.  Meaning, his primary job is not tax policy but rather managing the equity of Berkshire Hathaway shareholders, and perhaps drinking a few Cherry Cokes along the way

No comments:

Post a Comment