Why Warren Buffett Is Selling His Money-Losing Stocks Before 2018
Though he's made long-term investing an integral part of his personal brand, Warren Buffett indicated that he may be placing some trades for Berkshire Hathaway (NYSE: BRK-A)(NYSE: BRK-B) based on his view of how tax laws could change later this year.
In an interview with CNBC, the Oracle of Omaha said he thinks the odds of corporate tax reform are higher than most people think, and that investors will be selling their losing stocks and holding on to their winners to position for a tax cut later this year.
Berkshire Hathaway is an unusual company for many reasons, but taxation is one of the biggest. As a corporate entity, Berkshire Hathaway pays full corporate tax rates on its gains, a bite that can cost it 35% of its pre-tax investment profits when Uncle Sam comes to take its share.
Source: Fool.com
