The most telling biography ever written about Warren Buffett is, “The Snowball,” by Alice Schroeder. In this in-depth study of Buffett, Schroeder provides clues that can help answer the newest questions on Buffett's latest pronouncements. During her research processes, Schroeder dug deep. Eventually she found the most compelling evidence that drives Buffett’s late life motivations. Schroeder concluded after all the facts were in, that Buffett is as much an image-conscious celebrity as he is anything else these days. And while the man continues to extol the virtues of capitalism and still never hesitates to take advantage of a an inside deal (i.e. the convertible preferred private placement from Goldman Sachs right around the time the Bush administration provided the notorious toxic mortgage stained Wall Street investment firm with a fast track to bank holding status), his primary need above all else is to appear to be overflowing with compassion for the little guy.
Buffett with Alice Schroeder |
"The Snowball," is most instructive. When this great business apostle does finally die, his personal wealth will NOT go to the federal government. Instead, it will go to a tax-exempt foundation. Buffett has frequently made it very clear that he thinks the foundation of his choice will do much more with his wealth than could be done if what he has accumulated fell into the hands of the U.S. Treasury Department. No arguements there. Buffett devotees would be foolish if they chose to pay more attention to what this brilliant man says vaguely for his image. It is best to know precisely what he actually does as an investor and philanthroper. His letters to shareholders are filled with the truths while his op-ed pieces are image managing generalizations. And in those Berkshire letters we can say that avoiding capital gains tax liabilities is the name of the Buffett game. In fact Buffett avoids virtually all other actions that might tend to put a significant portion of his wealth into the hands of the federal government. And he provides illustrations to justify this approach. These tactics have been, and will continue to be the core strategy for Buffett, even from his grave. Why? Because he is extremely astute. Any op-ed piece written by Buffett (or anyone else) that suggests he does not translate his tax minimizing philosophy into his overall wealth management and accumulation strategy cannot support their case with the facts.
2 comments:
Why? Though Buffet may be the greatest investment guru in history, he's unable to tell it like it is when it comes to politics and the entitlement mentality fostered by the left. He's hopelessly committed to an ideology that conflicts with his business savvy and better judgment.
If Buffet is so adamant that the "super rich" should give more to the federal government then why does he give so much money to charity? Perhaps actions speak louder than words when it comes to sorting out what someone REALLY thinks.
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