No. of Recommendations: 4
Also, taxes are really low now, and he has said this is not sustainable either. He probably feels that tax rates will go up from here. So selling now and realizing a lower tax rate is not a bad idea, especially when his favorite stock is so expensive now.
... I know he is not the type to rebalance a portfolio because of too much concentration, but selling an expensive stock for a low tax rate before it may go up certainly feels right.
I know this was published the day after the election, but it sure sounds like it was written before. And it is hard to understand Buffett's timing. If Harris had won, then sell the shares and lock in 21%. If Trump wins, wait another 2 months and you have a fair chance of paying 15% instead. Given that 2 months is plenty of time to sell down such a liquid stake, I don't really understand why Buffett was in such a hurry to pay all that tax.
dtb
