When a company buys back shares they buy it from shareholders who willingly sell their shares to deploy their capital elsewhere. When they sell their shares the gain is subject to taxes, so it is not like a buyback generates no tax revenues (unless the shares are sold by non taxable endowments or non profits).
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Patience is a virtue and a vice for Americans. We can be suckers for simplistic formulas, excess leverage, and delusions of certainty. Buffet and Munger avoid these traps. Our obsession with finance distracts from the effective and efficient production of goods and services, engagement with the customer, and the patience and faith to adhere to sound principles.
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One of the better questions submitted during the annual Berkshire Hathaway meeting concerned the poor track record of most conglomerates. Few succeeded for any length of time. Warren’s response was illuminating. Many conglomerates were just tricks played with the
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I attended my first shareholders’ meeting of Berkshire Hathaway in Omaha this weekend. My investment manager, Gary Watkins (Banyan Capital), has been a shareholder and regular attendee of these meetings for some time. I had heard of these meetings as
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I have posted several article seeking better information about the myths commonly accepted about the gaps in income and wealth distributions. Some of this analysis in seen here, here, here, here, here, here, and here. Daniel Greenfield in his excellent
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Many traditionalists, including Warren Buffett, lashed out at the stress tests as wrong and unnecessary. He was quoted in the Financial Times complaining that Citigroup’s high-profile problems had tainted the entire industry. Most of the banking institutions were relatively healthy,
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The Dow has broken through 14,000 for the first time since 2007. Yet unemployment is still high and has recently gone higher. The work force participation rate is the lowest it has been since the 1980’s and our prime working
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