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URL:  http://boards.fool.com/yet-he-takes-only-100k-salary-to-avoid-tax-and-30404746.aspx

Subject:  Re: BRK Date:  11/29/2012  10:33 AM
Author:  kelbon Number:  40828 of 41633

Yet, he takes only $100K salary to avoid tax and then loads up on stock options.


Berkshire doesn't issue stock options and never has. Buffett does own a lot of Berkshire shares, which he purchased like anyone else could have, a long time ago.

He does, and has for a long time, been paid (has paid himself) an annual salary of $100K. This has been more of a statement about the egregiously high salaries and benefits some CEOs indulge themselves in, than a "tax dodge." One of his quips is: "I work cheap, but I travel expensive." He travels any meaningful distance by private jet on Berkshire's tab.

Most of Buffett's income comes from dividends from his personal stock portfolio; his hobby, not his job, which is Berkshire Hathaway.

As far as Buffett being a hypocrite it is fair to say that sometimes it's a case of 'do what I a say, not what I do.' And, it's accurate that, whether coincidentally, or deliberately, Buffett's income is structured in such a way that he pays a relatively small proportion in taxes. However, if you think him a hypocrite, bear in mind that if what he advocates comes to pass he'll be paying twice the taxes he pays now. I don't think if 'The Buffett Rule' is passed he's going to be saying "I was just kidding."

There are plenty of fish in the sea. If you have an issue with Berkshire Hathaway and/or Warren Buffett, don't buy the shares.

kelbon
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