To: Haim R. Branisteanu who wrote (73539 ) 3/29/2001 9:26:27 AM From: Benkea Read Replies (1) | Respond to You do know that underwriting capacity DOES NOT deduct for cap-gains, right? So, BRK is able to right insurance against IRS' MONEY! Not only that, he gets to collect 10% dividends in the interim. Not only that, BRK only pays 14% tax rate on dividends! Not only that, deduct the $4 bil + in cap-gains due on sale, and what's he going to do with the remaining $8 bil ish? He's already sitting on $30 bil in bonds - bought back when they were unfashionable in 98 and 99 (which have BLOWN away the "SPX"). So he should sell, pay taxes, and collect 5% (which BRK does not get at the tax advataged 14% tax rate!)? FWIW, KO is now less than 10% of assets! I suppose you're of the school that this is a closed end mutual fund, right? The "fund" is now up to over 110k employees!only compounded by around 23% (the same amount it has for DECADES) during that period. Incidentally, BRK shareholders don't give a schit about anything but book value compound rate.feel more successful than Buffett and Greenspan to opin, by all means continue.
