% | $
Quotes you view appear here for quick access.

Berkshire Hathaway Inc. Message Board

  • jsandri Dec 20, 2011 3:30 PM Flag

    BRK Ponzi scheme?

    So Warren gifts his personal account shares to Bill & Melinda Gates to avoid death taxes. Then Bill & Melinda take the shares and sell them in the open market to fund their charity.
    Warren announces a buyback program. He buys the shares from the Gates in the open market and restocks them in the company. WTF??

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • baltbear Dec 21, 2011 2:54 PM Flag

      there can be no such thing as a "death tax" or the country would be filled with immortals in prison.
      no dead person pays any taxes.
      the term "death tax" was invented by a republican advertising consultant from florida, who noticed that americans could give a rat's rumop about some phat cat's "estate."

      • 1 Reply to baltbear
      • This is just a way to maximise his gift. Lets just say he bought the shares at $10 each and they are now worth $30 a share. If he sold them and gave the money to Gates he would owe capital gains on $20 a share. By gifting the shares he avoids capital gains tax and by selling them Gates realizes the full market value without owing any tax. The fund can buy back shares on the market if the price seems good. I would assume by so many shares hitting the market at once, the price would drop and the fund would get a good deal. Everyone wins.

    • Avoid death taxes? How can you avoid more taxes than the value of the assets you donate?

      There's no indication Gates Foundation is not being careful on sales to NOT drive.

      And what is wrong BRK buying back shares at an advantageous price?

      Kindly explain you concern.

      • 1 Reply to vensh
      • jsandri Dec 20, 2011 10:52 PM Flag

        If Warren doesn't give away the bulk of his fortune, the Federal government will confiscate 55% of it. But if he gives it away, his family trust doesn't pay the government the estate taxes. Plus, he gets to controls where it gets spent. He obviously doesn't trust the government with his riches. Oh, but he tells you he doesn't pay enough taxes. You don't see the hypocrisy?
        Now regarding the Gates gifts, I was just sharing the irony of his giving away shares...only to buy back a chunk of it back. The company gets the shares back, the Gates get their cut...AND THE TAXPAYERS OF AMERICA GET ZILCH. (Oh, but he wants to pay more taxes. HA!)

143.78-0.78(-0.54%)May 6 4:01 PMEDT