How does one of the world's most expensive stock (Berkshire Hathaway) have so little transparency amongst management and have someone like pic related literally spout out generic investing memes like "buy low and sell high"?
I'll give you a hint.
It starts with a P.
...
>it's a Ponzi scheme right guys?
Nah, brah, more like insider trading, which companies voluntarily engage in because if Buffet invests in them everyone else will too.
Kek just imagine the shitfest if it were uncovered that he's running a Ponzi scheme. It would be hilarious.
It's just a front for the linch pin of the American insurance industry. He buys companies with lots of hard assets(BNSF) so that he can use it as collateral for huge reinsurance policies.
The insurance industry is one of the least regulated and easiest financial industries to get into. There's just one basic rule: have enough assets to cover all possible claims.
Would it even be a ponzi scheme at this point? It could be a legit corp by now.
>create a company that holds a bunch of dividend paying stocks
>take company public
>Get money from IPO to invest in more dividend paying stocks
Don't pay out dividends to share holders of said company
Warren buffett literrally takes other peoples money and invest it in stocks but keeps all the dividends. Thats the secret to wealth, use other peoples money to get rich.
>Warren buffett literrally takes other peoples money and invest it in stocks but keeps all the dividends. Thats the secret to wealth, use other peoples money to get rich.
I don't know if you're just saying that or if you really know something. However, you're exactly correct.
When he buys an entire company, the company's profits that used to be taxed and/or paid out as dividends are now no longer profits but capital used to purchase other companies or grow existing businesses. The profits cease to exist and therefore are no longer lost to taxation.
Berkshire-Hathaway's ownership of insurance companies allows the company to have a huge float, a pool of money that they must eventually pay back (assuming generous actuarial tables) but in the meantime is an interest-free loan. Returns can be juiced by charging greater premiums, delaying payment of claims, or just not paying claims.
You have no idea how tax laws or accounting work
If you fully own multiple businesses, profits from one business can be used to develop other businesses. That is exactly what BRK did with See's Candies.
For businesses that are siloed, then they will have to pay taxes before their profits can be used by the holding company.
However, if you structure the company in a way that it is just a subsidiary of the main company, the P/L for taxation purposes is done at the holding company level.
He's exactly right. What are you arguing
Jews?
>dumpster kid takes up meme investing with his $100 that he should have spent on video games
>ends up getting completely distracted (again) looking up random shit about warren buffett
can we at least make this about reptilians and space cowboys if we're just going to fuck around?
The only reason it's so expensive is Warren Buffet refuses to split it.
everyone once in awhile you can come onto Veeky Forums and run into someone that has some knowledge and knows what they are talking about. This is one of those times.
Ever since I learned that while exceedingly rich, he refused a $30k kitchen extension for his pregnant daughter I've disliked this cunt.
What the fuck is his Buffet's daughter doing here? Someone escort this tragedy home.
I would kek so hard.
How does one need to set up two corporations to be able to take advantage of this?
holding owns stock of bought.
Bought disperses dividends to holding
holding does not disperse dividends. Holds instead.
not taxed b/c gonna buy new "inventory" with it.
repeat w/ multiple boughts its fucking elegant and bretty gud.
Quiet shitlord, stop oppressing me. I'm telling japmoot.
Damn, that's genius, but only if you find something to "invest" dividends in; how does that work? Does BRK just using dividends to purchase new holdings every year? Is that what's going on?
He refuses to split it to keep people like Veeky Forums from investing in his company
He doesn't believe in inheritance. All his money is going to charity when he dies
that's gotta be the biggest kick in the dick for his kids
By the B shares
If you had enough money you can arbitrage the A shares and B shares by shorting B shares, then buying a shares and converting to b, then giving back those b shares to the broker. This is assuming A shares/convertible rate is lower than the price of b shares.
>the P/L for taxation purposes is done at the holding company level.
Uh, like, no.
Alchemy!
all for what though? he doesnt indulge in anything except coca cola. lives in a plain house, no yacht, no fancy cars, he does own a jet but thats only because its convenient for him flying. Why have so much wealth and not have any fun?
it's an obsession
Pjews, obviously.
its about the game, man.
