Finance

How Berkshire Hathaway Gained $29 Billion from the New Tax Law

How Berkshire Hathaway Gained $29 Billion from the New Tax Law

Here is what Berkshire's shareholders next learned: First, Berkshire had a rich but odd year.

He explained in his 2017 annual letter to Berkshire Hathaway shareholders released on Saturday how he turned his $318,250 outlay for the bet into $2.2 million for the Girls Inc. of Omaha charity.

American tycoon Warren Buffett has played down speculation that he is putting in place plans to step down as boss of conglomerate Berkshire Hathaway, insisting that he has "never felt better".

Shanahan said it also would have been nice to read Buffett's thoughts on why he is selling off Berkshire's IBM investment but maintaining big stakes in Wells Fargo and US Bancorp.

Last month, Buffett gave greater oversight of Berkshire's non-insurance businesses such as the BNSF railroad, Precision Castparts and Dairy Queen ice cream to energy executive Gregory Abel, while insurance specialist Ajit Jain added supervision of insurance operations such as the Geico auto insurer.

While the announcement provided clarity to Berkshire's succession plan, Wall Street is hungry for additional details.

The company's often-impressive pace of acquisitions had slowed past year, he noted, when the prices asked for businesses 'hit an all-time high, ' amid what he called 'a purchasing frenzy'.

Those increases, however, masked declines in operating profit, which Buffett considers a better gauge of overall performance, and which fell 18 percent previous year to $14.46 billion.

The fees - typically 2% of the investment's value and 20% of the profits - eat into clients returns, Buffett argued, and said returns do not typically justify those fees compared to the returns an investor could get from a low-priced S&P 500 index fund.

Berkshire on Saturday reported a record quarterly and annual profit, both of which received a $29.1 billion boost from the recent lowering of the US corporate income tax rate, which reduced its deferred tax liabilities. As a result, Berkshire's full-year 2017 net income could jump to an estimated $52 billion, or more than double earnings in 2016. Berkshire estimates about $3B in losses from those events. "Berkshire's goal is to substantially increase the earnings of its non-insurance group".

"Investors should probably look for indications of the direction and scale of the initiative in Buffett's letter", CFRA's Seifert told clients. Berkshire is the company's largest investor, holding about 26 percent of shares outstanding, according to FactSet. As of Friday at noon, Buffett's Apple stake was valued at roughly $29 billion.


  • United States of America  routs Slovakia to reach Olympic men's hockey quarter-finals

    United States of America routs Slovakia to reach Olympic men's hockey quarter-finals

    With his second two-goal game, Donato equaled his father, Ted, who scored four goals for the U.S.at the 1992 Games in Albertville. Donato was the star, scoring twice against Slovakia for the second time after doing it in a 2-1 victory in group play.
    Astros' prospect Forrest Whitley suspended for 50 games

    Astros' prospect Forrest Whitley suspended for 50 games

    The 17th overall pick in the 2016 MLB draft, Whitley is rated the No. 2 pitcher and No. 10 overall prospect by Baseball America .

    Website tracking 'Starman,' Elon Musk's Tesla on road to Mars

    SpaceX's aim is to reduce the cost of going into space and reusing components plays a major role in making that happen. According to Space.com those experimental solutions include parachutes and equipping recovery ships with metal arms.
  • NRA Chief Blames 'Family, School Security, FBI' for Florida School Shooting

    This movement should know it's a very real threat. "European socialists", he said, and they're taking over the Democratic Party. LaPierre laid blame on lawmakers such as Sen.
    17-year-old boy arrested in Lawrence County, Ky. school shooting threat

    17-year-old boy arrested in Lawrence County, Ky. school shooting threat

    Since then, he had posted a Snapchat image of inside his former High School with a caption that read "school shooter". The police is now investigating a threat of violence against Rio Rancho High School, New Mexico, made Tuesday.
    Fergie's National Anthem Fail at the 2018 NBA All-Star Game

    Fergie's National Anthem Fail at the 2018 NBA All-Star Game

    "The reason I was smiling is because I love the national anthem so much", joked Kimmel after playing the first half of the clip. The Colorado Sky Sox will be hosting their Annual National Anthem Auditions for the 2018 season. "Just regular is fine".
  • Ryan Coogler thanks 'Black Panther' fans in heartfelt note after historic weekend

    Ryan Coogler thanks 'Black Panther' fans in heartfelt note after historic weekend

    In addition to breaking records, "Black Panther" inspired a pop culture phenomenon . Marvel's "Black Panther" is setting a new box office record for opening weekend.
    Kushner resisting giving up top access amid scrutiny over security clearances

    Kushner resisting giving up top access amid scrutiny over security clearances

    Kelly said that he assured Kushner that the policy was not an attempt to push him out of the president's inner circle. His permanent clearance was reportedly stalled a year ago because he had to amend his application multiple times.
    Syria - Bombing in Eastern Ghouta (20 February 2018)

    Syria - Bombing in Eastern Ghouta (20 February 2018)

    The pace of the strikes appeared to slacken overnight, but its intensity resumed later on Wednesday morning, the Observatory said. But the Kremlin said claims the Russian military was responsible for civilian casualties in eastern Ghouta were "unfounded".
  • Trump Polls CPAC Audience: 'Second Amendment or the Tax Cuts?'

    Trump Polls CPAC Audience: 'Second Amendment or the Tax Cuts?'

    Trump blamed ailing Republican Senator John McCain for impeding efforts to repeal the Affordable Care Act during the CPAC speech. John McCain (R-Ariz.), who is now receiving treatment for brain cancer , for voting against the Republican Obamacare repeal.
    Trump Jr. Blurs Line Between Business And Politics In India Trip

    Trump Jr. Blurs Line Between Business And Politics In India Trip

    The biggest difference from the Obama administration, they said, was the apparent warmth between the president and Modi. But, technically, that doesn't stop them from promoting projects that were already in development on November 8, 2016.
    Weather Authority: Icy Tuesday morning commute

    Weather Authority: Icy Tuesday morning commute

    Strong to Severe Thunderstorms: Isolated storms may produce up to 1 inch hail and wind gusts up to 60 miles per hour . The first is expected to erupt southwest of Austin tonight , with storms blowing up closer to the border.