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.
>>1212414
>>1212417
http://finance.yahoo.com/news/buffett-disclosure-low-wall-street-analysts-what-it-s-like-to-cover-berkshire-hathaway-121251485.html
>>1212414
>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.
>>1212414
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.
>>1212428
Would it even be a ponzi scheme at this point? It could be a legit corp by now.
>>1212414
>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.
>>1212533
>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.
>>1212562
You have no idea how tax laws or accounting work
>>1212571
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.
>>1212414
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?
>>1212414
The only reason it's so expensive is Warren Buffet refuses to split it.
Ever since I learned that while exceedingly rich, he refused a $30k kitchen extension for his pregnant daughter I've disliked this cunt.
>>1213324
What the fuck is his Buffet's daughter doing here? Someone escort this tragedy home.
>>1212428
I would kek so hard.
>>1212581
How does one need to set up two corporations to be able to take advantage of this?
>>1213809
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.
>>1213461
Quiet shitlord, stop oppressing me. I'm telling japmoot.
>>1214517
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?
>>1213258
He refuses to split it to keep people like /biz/ from investing in his company
>>1213324
He doesn't believe in inheritance. All his money is going to charity when he dies
>>1214709
that's gotta be the biggest kick in the dick for his kids
>>1212581
>the P/L for taxation purposes is done at the holding company level.
Uh, like, no.
>>1214820
Alchemy!
>>1212414
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?
>>1215721
it's an obsession
>>1213227
Pjews, obviously.
>>1215721
its about the game, man.
