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Berkshire Hathaway Inc. Message Board

  • christof2020 christof2020 Nov 10, 2005 3:07 PM Flag

    BRKB Gap to BRKA

    Anyone have an theory / explanation for this?

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    • I had a discussion with Ben on it a few years back.

      I still think it is well over played. If you really figure out the trade offs, then for most people the deduction doesn't save them much.

      Figure net state tax(refund is taxable next year)+interest deduction+property tax+gifts+medical(which few get)+other misc(which are mostly worthless for most people after floors and such)-the standard deduction

      then X that times the tax rate for that income(might overlap brackets).

      I think it helps people get a little bigger house maybe. Saves those middle income families with tight budgets since a few $$ is very important.

      The savings is far from tax rate*interest expense for most people (real estate people seem to not share that with buyers).

      I would love to see an estimate cost of the deduction....i don't think it cost the US government much.

      The tax code is written for Middle and low class. The rich get screwed. The middle and low can fuss all they want, but they dont pay any where near their fair share. The budget is about 8,000 per citizen. How many families of 4 do you know that pay $32,000 in net tax (you can count look through corp taxes)?

      The fact of that matter is that is socialism. You can say it is good or bad, but socialism will hurt the economy long term. The right and the left seem to love socialism....only the middle seems to really want smart government.

      I am sorry for any mistakes...I did this on my super break. Back to work!

      SWUSC

    • Yo Mr. Tax Man, what's your take on the Mortgage Interest Deduction thing?

    • My thoughts:

      Some mutual fund trying to sell BRKB shares. Maybe someone like Janus that loaded on the B shares... Someone was sitting on the ask at 2,978 and 2,980 with a lot of shares today. Has to be a money manager trying to liquidate. Take advantage of the discount. I never seen such a disparity last very long. Arbitrage time!

    • I am buying B shares...the gap will naturally go away.

    • a guess..maybe funds are front running the inclusion in the S&P, whether it happens or not....if it does..a nice pop,..if it doesn't a safe , growth investment...win/win...
      I wa tempted to add B's today,just on the theory that the gap would close.....

 
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