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Strategies & Market Trends : Buffettology -- Ignore unavailable to you. Want to Upgrade?

To: Brendan O'Connor who wrote (2752)	1/22/2001 4:33:16 PM
From: Moominoid	Respond to of 4690

That's what has puzzled me about the corporate strueture expecially when it owns shares in other companies. First KO pays tax on its profits then BRK would have to pay tax if it sells KO, then I have to pay tax on BRK's profits. So Buffett doesn't sell underperforming holdings very fast because he wants to avoid paying tax (among other things). In Australia I can claim a tax credit in my personal tax for the corporation tax paid on dividends. The trouble with this is that it works against retention of earnings. David