Talk:Warren Buffett

Semi-protected edit request on 22 March 2024

Link "Secret Millionaires Club" reference under Personal Life to https://en.wikipedia.org/wiki/Secret_Millionaires_Club 75.85.167.29 (talk) 06:06, 22 March 2024 (UTC)

 Done Jonathan Deamer (talk) 10:03, 22 March 2024 (UTC)

Status quo

Could please anyone explain to me why my edits were undid "against status quo"? What does it exactly mean in Wikipedia? Thanks a lot! Foxyra (talk) 13:45, 9 April 2024 (UTC)

Warren Buffett is Not a Co-Founder of Berkshire Hathaway

In the first sentence, someone has misstated WB as a "co-founder" of Berkshire Hathaway, which is not factual. A predecessor company, run by Oliver Chase in 1839, combined in 1955 with Hathaway to form Berkshire Hathaway. Mr. Buffett did not begin purchasing shares in the public company until 1962, and the Partnership that he ran, Buffett Partners, Ltd (BPL), gained a majority and controlling interest by 1964.

Even if one ignored the 19th Century predecessor companies, the company that exists today, Berkshire Hathaway, Inc., traces its legacy back to 1955 and Warren Buffett had zero involvement prior to 1962, thus excluding any possibility of founding. 2601:140:9481:6F40:D85:1116:4149:E19 (talk) 23:17, 3 May 2024 (UTC)

This article fails to mention Buffett's $5bn investment in Bank of America in 2011. This was one of Buffett's most profitable trades.

This article fails to mention Buffett's $5bn investment in Bank of America in 2011. This was one of Buffett's most profitable trades. He made $300 million per year on the preferred stock until 2017 when he sold the preferred position to exercise the warrants he received for BAC stock, netting a $12bn gain. Tomwiki32256 (talk) 13:16, 6 May 2024 (UTC)

Original Source for 2007 quote regarding Buffett paying a lower marginal Tax Rate than his employees.

https://www.cnbc.com/id/21553857

This drives me bonkers since so many take it out of context, stating Buffett paid less tax than his Secretary.

Buffett felt he was undertaxed vs. his employees and wanted to increase his marginal tax rate - which happened since Capital Gain tax went up to 20% and the ACA tax of 3.3%

The Forbes reference here is not good, so I found the source: an interview by NBC’s Tom Brokaw “appeared on set with anchor Brian Williams on Nightly News last night with a taped piece that features a sit-down interview with Buffett.” https://www.cnbc.com/id/21553857 retrieved 6/4/2024

Why is this important? Many feel the rich are not paying “their fair share” of taxes https://www.reddit.com/r/tax/comments/1d75jxh/what_are_the_techniques_that_the_rich_really_use/?sort=new and cite Buffett.

Warren Buffett and NBC's Tom Brokaw: The Complete Interview Alex Crippen | @alexcrippen Published 12:08 AM ET Wed, 31 Oct 2007 Updated 3:39 PM ET Thu, 5 Aug 2010 CNBC.com

Tom: You've talked about in your office, for example, you pay a much lower tax rate with all of your wealth than, say, a receptionist does.

Warren: That's exactly right, Tom. And I-- I think the only way to do it is with specifics, and-- and - and in our office, 15 people cooperated in a survey out of 18. I didn't make anybody do it. And my total taxes paid-- payroll taxes plus income tax-- and the payroll tax is an income tax. It's based on income.

Tom: Yeah.

Warren: Mine came to-- 17.7 percent. That-- that was the-- that was line 61 I think-- or, no, line 43-- is the percent of taxable income, plus payroll taxes, 17.7 percent. The average for the office was 32.9 percent. There wasn't anybody in the office from the receptionist on that paid as low a tax rate. And I have no tax planning. I don't have an-- I don't have a-- an accountant. I don't have tax shelters. I just follow what the U.S. Congress tells me to do.

Tom: Why do you think that there's not more outrage about that?

Warren: I-- I don't think people understand it. For one thing, you'll see a lot of surveys that say the rich, the top one percent pay this much of the income tax. Now I think what people don't realize is that almost one third of the entire budget comes from payroll taxes. And payroll taxes on income, just like income taxes are taxes on income.

And the payroll tax is over $800 billion out of two and a trillion, or something like that. And people don't understand-- they-- they-- that the rich pay practically no payroll tax. I mean, I paid payroll tax last year on $90 odd thousand, whatever the number is. I paid income tax on $66 million. But my double income tax, one of 'em quits at $90,000. And the remaining $66 million does not get taxed with payroll tax. So, the person who makes $60,000 in our office gets ta-- taxed in full on the payroll tax, and taxed in full on the income tax. And-- and all the statistics you read, particularly the one don't like taxes, well now, they totally ignore the payroll tax. And it's huge now.

Tom: Of all the tax lines that you've seen proposed over the years, a flat tax, a consumption tax, a more progressive income tax, which is the one that appeals to you the most?

Warren: Well, in theory a progressive consumption tax makes the most sense. I mean, if you tax the people who use the resources of society rather than ones who-- who-- who provide the resources of society, that makes more sense. And a consumption tax can be very progressive.

You can have just an unlimited IRA. As long as you invest money, and don't actually spend it for yourself, or your kids don't spend it, or whatever-- you don't get taxed. As soon as you start making withdrawals from society's bank, start using the resources, the-- the sweat of other people to-- benefit yourself, you would pay on that. That-- that's the one that makes the most sense. I don't-- it isn't gonna happen-- in all likelihood.

Certainly the worst taxes-- is something like a sales tax. I would say that we've got a pretty bad system, when we tax the person who-- who cleans out my office, the receptionist. They are paying 15-- payroll taxes, over 15 percent now, just for openers.

Most of my income is taxed at 15 percent, and-- and doesn't pay a payroll. Mainly it’s dividends and capital gains. And if you look at the For-- Forbes 400, a bunch of my fellow rich guys-- they will-- their tax rate overall to the federal government will be less than that of their receptionist. And I challenge anybody. If they want to make me a bet on that, and I've urged Congress, both the Senate and the House, to get the figures anonymously from the IRS. Just look at that Forbes 400. Takes a billion three to get on the Forbes 400 this year. And the aggregate wealth is just staggering. And those people are paying less percentage of their total income to the federal government than their receptionists are. Interview continues. Nofway (talk) 15:43, 4 June 2024 (UTC)