Excellent Carol Loomis & Buffett Interview

[Parsad]

Buffett speaks with Carol Loomis of Fortune.  Terrific interview!  Thanks to David Lau for the link.  Cheers!

 

http://money.cnn.com/video/news/2010/10/05/n_buffett_MPW.fortune/

[dcollon]

I completely agree, it was a very good interview.  I still wish someone would ask Buffett a tough question about taxes, but I doubt it will ever happen.

 

[Guest longinvestor]

Really nice one! Thanks

[netnet]

I completely agree, it was a very good interview.  I still wish someone would ask Buffett a tough question about taxes, but I doubt it will ever happen.

 

 

What's the tough question you have in mind?

[dcollon]

The tough question surrounds his deferral of ever having to pay taxes on his berkshire investment.

[bookie71]

Insert Quote

The tough question surrounds his deferral of ever having to pay taxes on his berkshire investment.

.

. I beleive he has stated several times that Berkshire is not the preferred enitiy for his type of investments.

[treasurehunt]

The tough question surrounds his deferral of ever having to pay taxes on his berkshire investment.

 

You mean by giving away all his Berkshire stock? He could give this answer: "If you are rich, I encourage you to give most of your wealth to charity. Otherwise, the government should tax your estate heavily. Also, if you make a ton of money each year, the government should take a bigger chunk of it than it is currently doing."

[dcollon]

Sorry I should have been more clear.  I would like him to explain why the tax free loan for the government (deferral of taxes) has worked so well for him and how the average person can try to apply the idea.  I think this is the one area that the average individual (not people on this board) doesn't think enough about.

 

I think returning his money to society via the Gates Foundation and his children's foundations is a great thing.  They will allocate the money much better than the US government will. 

 

Again, I should have been more specific in my comments. 

 

Have a good day,

David

 

 

[Myth465]

Humm, that sounds like a question designed for the audience and not so much you, and seems relatively simple.

 

Also you asked Charlie a question, is that correct? If so how did you figure out what to ask. I dont know what I would ask Buffett, or Charlie. I feel like I have learned so much from them, and its the gift that just keeps on giving.

[dcollon]

True Myth, it would be designed for the audience, but one of my many concerns is that there aren't enough people thinking about trying to compound money for the long-term.  In addition, all the benefits that accrue to the person and potentially society by saving and investing.  I continue to think back to the I.O.U.S.A. documentary a few years ago and how little publicity that ended up getting.  It should have been required viewing for the everyone.

 

I was fortunate to be at the U of M meeting with Charlie and was able to ask him a question about the problems with pensions that we face.  He didn't speak to my question as much as I would have liked, but it was still great to be able to ask.  My question on pensions came from my overall concerns regarding the liabilities we will have to cover.  I live in Michigan, so I'm kind of at ground zero.

 

It was so fun being there.  I have attended BRK & WSC meetings, but to be in the first row 15 feet from the man was great. I know I sound weird.  He walked in with no security, just a couple U of M faculty.  Li lu was there which was cool, but I'm not sure how many people knew who he was.

 

Something I will never forget.

[Parsad]

It was so fun being there.  I have attended BRK & WSC meetings, but to be in the first row 15 feet from the man was great. I know I sound weird.

 

No, not weird at all...at least from my perspective!  ;D  I remember a few years back, when a friend of mine who works at the Motley Fool, gave me an extra media pass to attend Buffett & Munger's press conference in a small room in the Omaha Marriott.  I sat in the first inside seat, in the first row, closest to Buffett and Munger.  And on top of that, Ajit Jain was sitting in the back row of the room as well.  It was fantastic...and then they were signing autographs after.  There were maybe only 20-25 people there, so it was pretty amazing as most didn't go up to them afterwards either.  Cheers!

[Guest Bronco]

Dcollon - I tend to view the world differently, but I would argue there has been little deferral on his investment.  Before people start firing off emails, by this I mean that "his" investment vehicle is paying 35% in taxes on all US income (form 1120).  

 

Put yourself in his position.  Start a business.  Put in $100.

 

If every year the business earns $10 but you keep $6 and the government keeps $4, I am sure you won't feel like your business is deferring taxes.  Maybe the business is worth $300 in 10 years, but I would still argue you don't get a warm and fuzzy deferral feeling.

[dcollon]

Valid point Bronco and probably the reason bookie pointed out that Berkshire is not necessarily the preferred vehicle.

 

Sanjeev, that's a great story.  You have to love that invite.  :)

 

[Myth465]

Interesting Dcollon. I enjoyed your question. Reading the article linked by our board Munger, it was interesting hearing Buffett discussing pensions as life bonds. I think its a big shoe to drop. A lady with a guaranteed pension at my job from her previous company was lecturing me about young people today not saving. I was thinking gee thats easy for you to say. In her defense she saved outside of her pension, but it will be quite interesting when Im her age. Most of my friends are living for today (more like yesterday given the debt) and have nothing for tomorrow.

 

I saw a documentary on Frontline about Pensions and read Roger Lowenstein While America Aged. Both were extremely well done - In retrospect I should have shorted Muni Bonds and GM the day after finishing the book. He was proved right.