India is a huge market for anyone to ignore: Warren Buffet

Berkshire Hathaway chairman and CEO Warren Buffett talks with a reporter before the Berkshire Hathaway annual meeting in Omaha, Nebraska, U.S. May 6, 2017.

Berkshire Hathaway has operations ranging from insurance to freight railroads and investments in a host of businesses, including troubled bank Wells Fargo, which has been rocked by a fake accounts scandal.

The Trump administration’s healthcare bill would repeal most of the taxes that paid for Obamacare, which is formally known as the Affordable Care Act.

He said Berkshire prefers buying companies that are already efficient, and that 3G is not alone in trying to slash costs at companies that may be less efficient. The Republican bill scraps that tax on the wealthy.

“That is in the law that was passed a couple days ago”, he added.

Buffett said the $3 trillion hedge fund industry is “such a big game” that people are able to make “huge sums of money, far beyond what they’re going to make in medicine” or other professions. He once famously said somebody like him should not be paying a lower tax rate than his secretary.

Munger says in retrospect, he thinks he and Buffett were smart enough to figure out Google’s prospects early on, but they didn’t. The stock has gone up by almost 59 percent over the period under consideration.

The high cost of US health care puts American businesses at a competitive disadvantage with other countries. He also noted that other developed countries appear to have found better ways to contain medical costs. “The main problem was they didn’t act”.

Asked whether Berkshire’s decentralized structure could lead to a similar scandal, Buffett said Berkshire welcomes being alerted to misbehavior via an internal “hotline” that gets 4,000 calls a year. He said it’s true that an ounce of prevention is worth a pound of cure, but “a pound of cure promptly applied is worth a ton of cure that’s delayed”.

“Forty percent of the benefit of those tax cuts would go to the highest-income one percent-those making more than $772,000 in 2022”, Howard Gleckman, senior fellow at the Tax Policy Center, wrote in March, when details of the bill surfaced.

Update: Wells Fargo has issued a statement in response to Buffett’s critique, saying: “We agree with Mr. Buffett’s comments and value Berkshire Hathaway as a long-term shareholder and customer”.

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