After Finishing Billion Dollar Investing Spree, Buffett Bemoans ‘Income Inequality’
- Posted on November 17, 2011 at 2:42pm by
Becket Adams
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Based on his recent investments, it seems that Warren Buffet is incredibly optimistic about the U.S. economy. And while he has been investing at a breakneck pace, he has also been condemning the growing “income inequality” in the U.S.
“You’ve seen a period where the American workers have generally gone no place and where the really super rich as a group increased their incomes five-for-one in this rarified atmosphere,” he said in a recent Business Wire article.
Late Monday, Warren Buffett’s Berkshire Hathaway filed its third quarter 13-F form. The form provides investors with a glimpse at the holdings of Wall Street’s biggest funds. While investors do not know the trading strategy used by the big boys, the 13-F form can provide insight to how successful investors think (but keep in mind that this information is subject to change with the end of the third quarter).
Here’s what Berkshire Hathaway is doing with its money:
The most talked about new position is Warren Buffett’s stake in IBM (which is rare considering he generally avoids investing in tech companies). He now has a significant 5.4 percent stake in the blue chip giant at an average price of $170. Warren Buffett explained that IBM fits all of his principles. One such principle is the requirement for top-tier management (IBM recently announced that Virginia M. Rometty will succeed Sam Palmisano as chief executive).
Buffett revealed Berkshire accumulated the stake–about 64 million shares valued at $10.7 billion–from March to October. According to the 13-F, IBM is now Berkshire Hathaway’s second largest stock position.
With all this investing and buying, Buffett certainly must be confident in the U.S.’s ability to recover.
However, he still took the opportunity to comment on how he has been able to succeed while others failed, saying that “while there have been improvements in some areas of the economy, many others haven’t fared so well,” writes the Huffington Post.
Winners, Buffett says, “include corporations, who have seen good equity returns, as well as the wealthiest American citizens.”
Who isn’t faring well? The American housing market and the average American.
“Through the tax code, there has been class warfare waged, and my class has won,” Buffett told Business Wire CEO Cathy Baron Tamraz at a luncheon in honor of the company’s 50th anniversary.
“It’s been a rout.”
Again, this shouldn’t surprise anyone. Buffet has been on the forefront of criticizing what he calls an “increasing income inequality in the U.S.”
Recall that in August, Buffett decried the low tax rates for wealthy Americans in an op-ed for The New York Times.
He declared that the Obama administration should raise taxes on millionaire and billionaires and this led to President Obama dubbing the effort the “Buffett rule.”
On the potential of having a tax named after him, Buffett said to Business Wire, “It was my childhood dream to have a tax named after me.”
However, instead of making a general donation to the U.S. Department of the Treasury Credit Accounting Branch (3700 East-West Highway, Room 622D
Hyattsville, MD 20782) because he’s concerned about not paying enough, Buffett has been on a buying spree.
Berkshire Hathaway added smaller new positions in CVS, Intel, Visa, General Dynamics, and DirecTV.
In the third quarter, Buffett’s company also added 9 million shares of Wells Fargo, 3 million shares of Dollar General, and 2.1 million shares of Verisk. Buffett has also stayed with Wells Fargo, despite the turmoil in the financial sector. As of the end of the third quarter, the bank is Berkshire Hathaway’s third largest portfolio position, with a holding value just over $9 billion.
(Related: What Are These 3 Hedge Funds Doing With Gold?)
Berkshire Hathaway also trimmed its positions in Kraft and Johnson & Johnson. Overall, the company held $59.1 billion in common stock at the end of the third quarter. This represents a nearly 13 percent increase from $52.4 billion in stock holdings at the end of the second quarter.
[Editor's note: portions of this article originally appeared on Wall St. Cheat Sheet.]
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Comments (61)
karenjerry
Posted on November 18, 2011 at 1:11pmYou can bet your bottom dollar he gets paid very well for this kind of propoganda
Report Post »Ruler4You
Posted on November 19, 2011 at 12:50pmHe met with obama some weeks back. You can rest assured that he is about to be handsomely compensated with some kind of ‘opportunity’ from the ‘government’ (you and I). You can also be pretty confident he is not a ‘gentleman’ when it comes to money / business / winning.
Report Post »affinnity
Posted on November 18, 2011 at 10:38amI don’t want him to feel so unequal so just take his billions, give him an $30,000 a year pension and a deluxe $199.95 tent in one the Occupy camps. If these liberal billionaires are so unhappy let’s give them what they say they want, true economic equality.
Report Post »Detroit paperboy
Posted on November 18, 2011 at 10:52amHey Warren , just write a check for 99% of your net worth to the IRS…. problem solved. Ok then shut the f+*%k up…. Closet commie. Just write the check. Or shut up.
Report Post »ishka4me
Posted on November 18, 2011 at 1:05pmit is like reading Orwell’s “animal Farm” seperate rules for the pigs
Report Post »Rajabear1
Posted on November 18, 2011 at 10:37amI say we let the ‘99%‘ take buffet as their example to us and show us exactly what they’d like to do the ‘1%’. I think buffet would be proud to be the example, to show just how unfair life is for all the ‘poor’ people.
Report Post »Wigglesworth
Posted on November 18, 2011 at 10:33amLet’s make things right Warren. We can go back and recalculate all your long term capital gains and preferred dividends as ordinary income. Whatever it comes to you can right a big fat check to the US Treasury.
Report Post »Ironeagle
Posted on November 18, 2011 at 9:55amBehold the A$$ of Omaha …or, should we say the A$$ of Obama
Report Post »lembrandt
Posted on November 18, 2011 at 9:54amI know Warren Buffet is a mega-billionaire and an American business legend, but look at who he is and how he spends his money and then listen to what he says…there is a *total* disconnect between these things.
Does he think we don’t, or can’t, notice?
He appears to be somebody who is losing his grip on reality.
Report Post »hightide
Posted on November 18, 2011 at 9:15amI believe he OWES some back taxes that he DID NOT PAY. Put your money where your mouth is Buffett.
Report Post »Free2speakRN
Posted on November 18, 2011 at 9:06amBuffett, Give all your money away ‘before’ you die, ‘before’ you’re sick. Get some current perspective. Be a member of the middle class, work your ass off, then tell us what you think about taxes.
Report Post »AYFKM
Posted on November 18, 2011 at 8:40amWarren Buffet is a TRAITOR.
Let’s take his stake in Burlingon Northern railroad for example. Obama nixes the Keystone Pipeline, and who will profit? Warren Buffet, of course. It will be HIS railroad that will be transporting oil south to the refineries.
Buffet’s got “his”; he doesn’t really care about anyone else. He’s shilling for Obama as repayment for his continued profiteering.
A$$WYPE
Report Post »Secret Squirrel
Posted on November 18, 2011 at 8:56am.
Warren, it’s really quite simple.
If wealth weights heavily on your conscience, give it away.
I’ll be waiting………snort, snort.
By the way, has Your company paid it’s taxes yet? No?
Report Post »curtisgb
Posted on November 18, 2011 at 8:16amThe Tax Code allows Mr Buffet (and company) to structure his tax situation any way he desires. If he doesn’t want to take certain deductions, He Shouldn’t Claim Them. Of course, if he tried it with his company then he would be sued and fired for being stupid and violating his fiduciary responsibility. Why he doesn’t pay full rate on his personal income is up to him to explain.
Report Post »steve5150
Posted on November 18, 2011 at 8:14amThis man is far richer than anyone has a “right” to be. In order to properly address “income inequality” his entire net worth should be confiscated and redistributed to the poor. (The poor being me.)
Report Post »rfycom
Posted on November 18, 2011 at 4:08pmWork harder ole boy and you won’t be so poor,
Report Post »rfycom
Posted on November 18, 2011 at 8:04amI will say again. You/me/we deserve our fair share. What is our fair share you ask? It’s every damn penny you can get. You, like the rich and the wealthy fought/fight for every penny so do the middle and the poor. If you do not you are a submissive. Bend over ole boy here it comes. Can you squeal like a pig for me. Sorry no lube cowboy.
Report Post »Johann
Posted on November 18, 2011 at 7:36amBuffet and Gates have stashed most of their billions in tax free foundations which they use as their personal fiedoms dispensing hundreds of millions to what they consider worthy causes most of which are located outside the USA. Time to tax all the foundations which were set up to protect the wealthy like the Rockefellers, Fords, Kennedys, Kerrys etc etc. True tax fairness is to end all charitable contribution tax write offs if people want to give to charity let them give their own money; I know I do. The corruption of the current American government is appalling and will end badly.
Report Post »cemerius
Posted on November 18, 2011 at 7:34amGuess George Soros is on his death bed (finally) and Warren Buffet is trying to be the new “spooky dude”?
Report Post »bbr48
Posted on November 18, 2011 at 7:09amWarren..just shut up and go somewhere else to peddle whatever it is you feel so strongly about. No one cares what you think. Get it????
Report Post »Truth and Justice
Posted on November 18, 2011 at 7:04amIs it me or is this guy becoming increasingly annoying lately!!!!
Report Post »Romanticpoet
Posted on November 18, 2011 at 6:06amHas Warren Buffett (Berkshire Hathaway) ever paid up his back taxes? Owes taxes from as far back as 2002; estimated at $1 BILLION dollars.
http://www.newsmax.com/InsideCover/buffett-irs-back-taxes/2011/09/01/id/409520
Hypocrisy personified.
Report Post »johnpaulkuchtajr
Posted on November 18, 2011 at 4:38amI hear that the pipeline that Obama just delayed by “voting present” will benefit a railraod that Buffett owns. Now that’s what i call income inequality! I don’t own a railroad!
Report Post »THE TRUTH SHALL MAKE YOU FREE
Posted on November 18, 2011 at 2:22amFunny how when he Tells you morons what the problem with this country is you still can’t comprehend it, MOST OF THE AMERICAN people in the occupy movement are protesting CRONY capitalism and the crooked tax code that stacksvthe deck in favor of the super wealthy..for example GE made 14 billion in PROFIT, AND PAID NOTHING IN TAXES. Yet us little guys pay through the nose. But you morons have been told this movement is to destroy the U.S. Wake up you freaks it’s currently being destroyed by our traitorous politicians. Can you think for yourself for once instead of the media lying to you on what this is about so that they can keep lundering our country and keep us divided.
Report Post »Lord_Frostwind
Posted on November 18, 2011 at 3:04amThe word for the day is “Hypocrisy.”
We are well aware that crony capitalism is doing tremendous damage to the US, but the Occupiers aren’t concerned with real crony capitalism. They haven’t touched Fannie Mae, Freddie Mac, the department of energy, or any of the real institutions responsible for the desolation of the system. All the while they are asking for a bailout and loan forgiveness for college and blaming the banks for the ridiculous costs of tuition. They are puppets too blind to see their stings.
Buffet is just a classic example of “do as I say not as I do” after all how much does his company owe the IRS on back taxes? He plays the noble philanthropist, but in the end he is just another billionaire trying to cover his rear with a good PR campaign. At the end of the day, he would pay a tributary amount to look good and keep the swine off his back, but that is just it, a tribute, nothing that will ever make a real difference.
Even if the message is true, that doesn’t mean the messenger is honest. Search for the truth hidden within the truth, and read beyond what is on the tin (I would give more metaphors but I hope you understand)
Report Post »Ssenkrad
Posted on November 18, 2011 at 8:14am*Slaps self in face* Yes, Crony Capitalism is what they should be protesting, but, instead of wanting an end to Crony Capitalism and a change to Capitalism with no subsidies, lobbying, or government connections, they want Socialism, and, seeing the “success” of Socialism around the world, I’d say that everyone on the Blaze is quite right in disagreeing with them.
Report Post »kmichaels
Posted on November 18, 2011 at 11:08amI guess the movement is whatever kind of crap you want to make it out to be, since the morons in the movement seem to have no consensus message whatsoever, other than they want more of somebody else’s money and that they are not willing to go to work for themselves. If you support their lunacy, then shame on you.
Report Post »OhSnappage
Posted on November 18, 2011 at 12:48amI guess Buffett CAN complain to everyone about inequality considering how unethical he is. He scammed his way to get ahold of his money where as the average citizen has worked to earn it. Maybe he should spread some of his wealth and doante to charity organizations, or fund community’s in need. What the heck does he need to keep all that money for? Create soem jobs you hack.
Report Post »heyjim55
Posted on November 18, 2011 at 2:05amBuffett likes to play a game called the Baptist and the Bootlegger, he presents himself as a statesman like character all the while he is really getting rich of others misfortune.
Report Post »ZaphodsPlanet
Posted on November 18, 2011 at 12:37amThis guy has become almost as evil as BO. I wouldn’t take twice is net worth for his Karma. He’s such a fraud and disappointment.
Oh yeah….. while buying all those stocks did he bother to pay the $1 BILLION in past due taxes he owes? Curious isn’t it.
Report Post »smokeysmoke
Posted on November 18, 2011 at 12:45amso if buffet says its the tax code thats the problem, why are LIBRETARDS asking for higher taxes, wouldent the simple fix be, going directly to the tax code and ending the holes….. like was in the paul ryan plan what was that OVER A YEAR AGO NOW…. DEMS YOU ARE SO PATHETIC
Report Post »garbagecanlogic
Posted on November 18, 2011 at 12:30amThe tax code allows him to donate all the money he wants to the U.S. Treasury. Why doesn’t he shut his pie hole and do it instead of all this touch-feely babbling.
The U.S. Out Of The U.N.
Report Post »The U.N. Out Of The U.S.
artistskeptic
Posted on November 18, 2011 at 12:48amFor decades Buffet maintained a low profile while he used the US economy and free market system to make his massive fortune. Now as a massively wealthy idiot he seems to be unable to keep his ignorant mouth shut and allow others to have an opportunity near equivalent to those he enjoyed. May he soon burn in hell.
Report Post »Amica
Posted on November 18, 2011 at 12:28amIt’s simple, Warren, simply stop doing all of the things that I’m sure you do to minimize your tax liability. No doubt you employ dozens of tax lawyers and accountants to make sure you pay as little as possible. File a 1040 on your full income. Nothing stops you from doing that.
Report Post »kaydeebeau
Posted on November 18, 2011 at 5:37amOr from writing a big check to the Gov’t…There is a PO box that it goes to somewhere in West VA. He can even got to irs.gov for the form and instructions
Report Post »GhostOfJefferson
Posted on November 18, 2011 at 12:23amI used to work for a company that this POS owned. He pimped his “noble frugality” as a company policy, as he’s quite vain. He’s a turd, and he‘ll be long forgotten in 50 years after he’s flushed down the tubes of history.
Sorry, War old boy, but you’re a fool. You made money, good for you, but you have no political wisdom and have no clue about what you’re advocating. You thrice damned idiot, I‘m glad I don’t work for you any longer, and I hope you roast in hell for selling your soul to the devil, assuming you ever had one to begin with, you smelly overstuffed sausage.
Report Post »GeneTracy
Posted on November 18, 2011 at 12:04amIsn‘t it funny that people like Warren Buffett make a lot of noise about the inequality but doesn’t seem to know the address of the U.S.Treasury to send a BIG check? Apparently all that money can’t buy him enough attention.
Report Post »Beckaj
Posted on November 18, 2011 at 8:36amYou should enjoy this http://dailycaller.com/2011/11/17/patriotic-millionaires-demand-higher-taxes-but-unwilling-to-pay-up-video/
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