Talking Book

Warren Buffett suggested last weekend that investment and capital allocation decisions are not influenced by taxes. Many, myself included, expressed some skepticism based on prior Buffett decisions

This week we see Costco declaring a $3B special dividend, financed by debt, in anticipation of the loss of the low dividend tax in the new year.  Several other companies have done the same.

Please note the Board Committees of Costco include noted Buffett Colleagues/friends Charlie Munger and Bill Gates.

Prominent business leaders are like politicians.  Watch what they do, not what they say.

UPDATE: long time Buffett holding (and Obama endorse) Washington Post makes a tax-motivated capital allocation decision.

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