Sucks to be Warren Buffett

[White92]

What to do with all this money????

http://money.cnn.com/2005/01/28/news/newsmakers/buffett/index.htm?cnn=yes

 

[NetViper]

Hmmmm..... how about create the NSX FX5000

 

[White92]

Either that or subsidize Honda's development of the next NSX.

 

[NetViper]

Either that or subsidize Honda's development of the next NSX.

Now that is smart thinking Lets get an email petition together and send it to him.

 

[Malibu Rapper]

Come on guys, he only made $645M in one day... After his taxes that only comes out to what, $400M at the most...

 

[ss_md]

Come on guys, he only made $645M in one day... After his taxes that only comes out to what, $400M at the most...

I'm positive that WB won't pay $245M in tax. He probably shelters his money in foundations, trusts, partnerships and other legal methods. If he pays $1M in taxes on that money I'd be shocked!!

 

[SoCalDude]

Now that is smart thinking Lets get an email petition together and send it to him.

If we could petition him to adopt me, I'lll make sure WE get rolling on the next NSX! :biggrin:

 

[Briank]

Come on guys, he only made $645M in one day... After his taxes that only comes out to what, $400M at the most...

He made $0 unless sold some of his holdings. "Investing 101"

 

[Dtrigg]

He made $0 unless sold some of his holdings. "Investing 101"

Wrong! That's called wealth accumulation. Fifty percent of that money could be his in cash without selling anything with a simple margin account. Investing 102.

 

[Briank]

Wrong! That's called wealth accumulation. Fifty percent of that money could be his in cash without selling anything with a simple margin account. Investing 102.

I never took investing 101 but I know buying on margin is buying with borrowed money. When I look at my investments the first thing I do is subtract the amount of my margin loan.

 

[Dtrigg]

There are lots of ways a person can leverage funds without selling. For example, assume you have $1,000,000 in your account and are receiving a 10% return, or $100,000 per year in interest and dividends. Assume you want to purchase a home for $500,000 with a downpayment of 20%, or $100,000. All you have to do is pledge $200,000 in stock for your downpayment. You also continue to receive your interest and dividends. In addition you have the interest deduction from your mortgage. If your mortgage is 6% and you are receiving a 10% return, you have arbitraged the funds and are getting 4% on your downpayment.

That's not even done in a margin account. Any major brokerage firm does this.

Investing 103? How the rich get richer...