Rather repurchase stocks than pay dividends: Buffett
Reuters|
Feb 26, 2018, 11.40 PM IST
NEW YORK: Warren Buffett, chairman and CEO of Berkshire Hathaway Inc, said his conglomerate, which is sitting on $116 billion of cash, is “more inclined” to repurchase stock than pay dividends as a means to use excess cash.
Speaking on CNBC television on Monday, Buffett said the corporate income tax rate cut signed into law by US President Donald Trump in December is a “huge tailwind” for US companies and that it is “really good for Berkshire”.
Berkshire attributed roughly $29.11 billion of its net income last year to the reduction of the corporate tax rate to 21% from 35%. Many US companies’ reported results have been skewed by the law’s impact. In his annual letter to Berkshire shareholders on Saturday, Buffett lamented his inability to find big companies to buy and said his goal is to make “one or more huge acquisitions” of non-insurance businesses to bolster results at Berkshire.
Speaking on CNBC television on Monday, Buffett said the corporate income tax rate cut signed into law by US President Donald Trump in December is a “huge tailwind” for US companies and that it is “really good for Berkshire”.
Berkshire attributed roughly $29.11 billion of its net income last year to the reduction of the corporate tax rate to 21% from 35%. Many US companies’ reported results have been skewed by the law’s impact. In his annual letter to Berkshire shareholders on Saturday, Buffett lamented his inability to find big companies to buy and said his goal is to make “one or more huge acquisitions” of non-insurance businesses to bolster results at Berkshire.
