Here is the way, someone discusses on well known SNAP.
We have seen our clients opening Indexed life insurance policies showing us a 16%-17% return of their over funded premiums. I am talking about people who open policies with $100K a month, pull 80% of it, but still have their $100K in the policy earning the aforementioned returns.
The good thing about these Indexed policies is that they pay whatever return every month, so, at the end of the year you prorate them. That is excellent when you have a crash in any given month of the year, like in 2008 where all the sudden everybody lost 38.5% or so. In this case, you earn 0% but you donāt lose your principal.
Be aware out there, there are rumors of a pending crash. They can say there will be one, but they canāt assure you when. And thatās the beauty of the economy, you get surprised with good returns, some you werenāt expecting, but there come the ones that leave you half naked on the street.
This is a no brainer. I invested in BAC back in 2009 and if I had as much money as Buffett Iād have outperformed him.
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Now, I came out of OIL and REITs as I do not find any benefits by corp tax deduction as they are one of the lowest corporate taxed companies.
Now, I understand why Warren Buffet bought AAPL after the elections ! Apple has the highest net income group, max benefit by tax reduction, also highest benefit for repatriation funds to get back to USA. Apple is a cash cow when corp tax is reduced.
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WB would put money set aside for his wife in an S&P 500 index fund such as those from Vanguard. Go figure. It means in the long haul, index fund is safer than his own BRK run by his successors.
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Isnāt Appleās effective tax rate quite low? Only 36% of revenues are in the US. They use Ireland to shelter EU income. Their biggest benefit would be repatriation. Small business (Russell 2000) would benefit the most from lower corporate taxes in the US. They have a very high percent of their income from the US.
Correct, Appleās effective tax rate is low. See Appleās profit Margin 20.7% every year on 45.22B !
All US incomes are going to have low corp tax rate.
All Ireland income and saving will likely get lessor repatriation tax (Trump and Rep proposal) around 10% (I hope so).
If this is happening, apple is cash cow for Warren Buffet. He has increased his stake to 2.5% with 18 Billion as of date. Warren Buffet team, in fact, speculating big corp tax benefit for Apple !
Same way, he took almost major Airlines stake, may be bigger cash flow.
I hope we may get more clarity when Trump addresses Congress Tomorrow.
If we could understand half of the mumbling jumbling in the 5th grader Twhitler speeches it would be fine. Itās going to be wonderful, bigly, enormous, blah, blah, blah.
That swamp just got full of sharks and alligators from Goldman Sachs, the same company he berate with the famous āGoldman Sachs is getting away with murder folks!ā in order to attack Hillary.
So, despite their ābad reputationā I will hire them.
Meanwhile, the poor, honest hard working people wonāt get benefited at all.
But they are still applauding! 
Another key takeaway is he follows to buy 120+ million of AAPL shares after one of his guy bought 10 million shares. WB is betting on AAPL doubling over x number of months/ years!
[quote=āJil, post:24, topic:1760ā]
Now, I came out of OIL and REITs as I do not find any benefits by corp tax deduction as they are one of the lowest corporate taxed companies.
Highest_Lowesttaxpayers.png704x235 37.5 KB
Now, I understand why Warren Buffet bought AAPL after the elections ! Apple has the highest net income group, max benefit by tax reduction, also highest benefit for repatriation funds to get back to USA. Apple is a cash cow when corp tax is reduced.
[/quote]If table is correct, why do T & VZ declines? Buying opportunity?
Whereās the growth for T and VZ? Thereā s a price war on mobile plans now. Itās a race to the bottom. Carriers are offering to pay the fees to break your current contract. Thatās a heavy customer acquisition cost. It reminds me of the late 90ās when you could get a $50-$100 gift card every month for switching your long distance provider. We saw how that went. Iām not sure about VZ, but T has a lot of debt to service. A price war isnāt a good thing.
So the takeaway could be that try to be a business owner and not a passive investor.
Watch blue collar millionaires on CNBC. They all own businesses and make a ton of money. Most of them, youād never guess that type of business would be so profitable. Itās way better than S&P 500 or rental property returns. Most of them did live pretty poor for ~10 years to reinvest everything back into the business before they got to enjoy the money.
[quote=āhanera, post:30, topic:1760, full:trueā]
You may not like it, but Buffet sold all his stakes in T (May 2016) & VZ (Jan 2017) to buy Apple & Airlines !
It is not the buffet magic, but his team knows (would have done all analysis) where profitability is high & low and how best to swap their money. At least they are 75% correct !
Looks like he clearly dropped those service providers (T & VZ) and moving to maker (AAPL).
When he, such as investor team with all their research, sells those T & VZ, I do not feel that is a buying opportunity?
BTW: I have not done and research on these two companies, neither own it. ATT getting into multiple top positions, chances of likely drop is high.
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Both are business owners. Full/ Influencing control vs minimum/ lack of control. At this point, he prefers full control. Is he planning to take full control of Apple sometime in the future when there is a market crash, and fools start selling regardless of fundamentals?
WB is dropping my dividend stocks to buy my top holdings. Should I be happy or not?
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Looking at the charts, WB sale induced T & VZ to decline till Oct but they had since recovered. So WB effect is only temporary.
I donāt know why he didnāt buy Airlines when they were about to go bankrupt in 2009. Kind of late in the game IMO.
You have seen price line jumped 6% today. Missed the boat, PCLN was not even in my watch list!
They (Berkshire) have all access to software and simulations, but my wild guess.
Economy likely boom, tax benefits, government spending, over all growth, oil stay at low levels for a longer period, domestic travel may increase. Economy is going to be reflationary.
Thatās my takeaway as well. But what local businesses to buy with good moats and healthy profit? Gas stations have pretty good moats. Nobody is building any new ones. Laundromats also seem to fit. Every neighborhood has one that never goes out of business.