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Home>UPDATE: Warren Buffett holds off on selling winning stocks in anticipation of tax cut

UPDATE: Warren Buffett holds off on selling winning stocks in anticipation of tax cut

UPDATE: Warren Buffett holds off on selling winning stocks in anticipation of tax cut

10/03/2017

By William Watts, MarketWatch

If lawmakers can't pass tax cut, they may be in 'wrong business': Warren Buffett

Billionaire investor Warren Buffett on Tuesday said Berkshire Hathaway is holding off on selling any holdings until it sees whether a Republican push to cut corporate taxes is successful by the end of the year.

"Right now we're sitting and watching because within three months, actually less than that, we'll know the answer," Buffett told CNBC (https://www.cnbc.com/2017/10/03/warren-buffett-were-holding-off-selling-at-berkshire-to-see-how-gop-tax-reform-shakes-out.html) in an interview.

Buffett said he would "feel kind of silly" if Berkshire (BRKA)(BRKA) realized $1 billion in gains and paid $350 million in tax when "if I just waited a few months I would have paid $250 million."

See:Buffett's Berkshire buys 38.6% stake in travel center operator Flying J (http://www.marketwatch.com/story/buffetts-berkshire-buys-386-stake-in-travel-center-operator-pilot-flying-j-2017-10-03)

Buffett said such considerations might be having an effect on the market, perhaps delaying "hundreds of billions" of dollars in profit-taking.

"It would tend to depress stocks that have behaved badly, because people would be taking the losses now. And it would tend to defer gains and reduce sellers currently that would be in stocks with very big appreciation," he said.

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