How much cash do you hold and is it the “right” amount? This question has plagued investors for generations without much resolution. However, Warren Buffett’s Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B) may provide some insight into the philosophy of holding cash assets. Some may argue Mr. Buffett has been talking out of both sides of his mouth. Here is a quote from an Oct 16, 2008 The New York Times Company (NYSE:NYT) Op-Ed written by Mr. Buffett:
For the GOP, taxes are optional (Salon)
Last October, President Obama introduced the so-called “Buffett Rule,” a tax provision that would require multimillionaires to pay a minimum 30 percent effective tax rate. It was named for the Oracle of Omaha himself, Warren Buffett, who famously complained about paying a lower tax rate than his own secretary. The idea garnered a great deal of public support, with one CNN poll from April 2012 finding as many as 76 percent of Americans in favor. Last week, bowing to popular demand, House Republicans passed the Buffett Rule Act of 2012, which naturally has nothing to do with any of that. Instead of establishing a baseline of fairness, it encapsulates the conservative notion that wealthy Americans shouldn’t be asked to contribute any more to society than they’re willing to volunteer.
Forget Giving, How about an Investing Pledge? (AxiomNews)
It was inspired by Warren Buffett’s the Giving Pledge, but instead of asking people to give their wealth to charity, the Investing Pledge invites investors to use their investments to do good. The impact investing challenge, which asks individuals, families, foundations, endowments, pensions or treasuries to declare a specific goals towards a higher level of sustainable investing, was started last year by Joel Solomon, president and CEO of Renewal Partners and Social Venture Network member. Joel has committed to investing 95 per cent of his portfolio for positive impact by the year 2013.
BUFFETT VS PICKENS: WHO WOULD WIN IN A FIGHT? (Advisor)
A Canadian Business reader submitted a rather interesting query to the magazine’s Ask McArdle column. It was: “Who would win in a fight between T. Boone Pickens and Warren Buffett?” The head of Berkshire Hathaway Inc. was re-crowned last week as second-richest man in America thanks to his $46-billion fortune.
A2 Plans Book Based on Warren Buffett TV Series (WorldScreen)
A Squared (A2) Entertainment is working with John Wiley & Sons to publish a financial literacy book inspired by Warren Buffett’s animated series Secret Millionaire’s Club. The series was created by Buffett in partnership with A2. It has inspired in-school curriculum, national competitions and now a book to help people of all ages, and especially kids, understand financial and business matters in a fun and entertaining way. The show airs on The Hub. Wiley will create a book inspired by Buffett’s teachings in Secret Millionaire’s Club.
What’s it like to work for Warren Buffett? (BizJournals)
“Without sounding silly about it, he is the smartest business guy I have ever dealt with,” said Gene Toombs, MiTek chairman emeritus. Buffett, Toombs said, doesn’t spend a lot of time analyzing past performance — but holds his executives accountable for future performance — doesn’t require formal budgets, and always acts as a enthusiastic cheerleader.
Build America Mutual Saves Schools $1.25 Million in First Deal (SFGate)
Build America Mutual Assurance Co. became the first new insurer to back local-government debt since Warren Buffett’s Berkshire Hathaway Assurance Corp. in 2007, saving Pennsylvania taxpayers more than $1 million in its debut. The company is standing behind a $10 million deal by York Suburban School District, with RBC Capital Markets managing the issue, data compiled by Bloomberg show. The insurance lowered borrowing costs by about $1.25 million on a present-value basis, said Dennis Younkin, the district’s director of finance and support services.
