Buffett and Graham put deal on paper

About a month ago, Berkshire Hathaway (BRK.A, BRK.B) and Graham Holdings (GHC -0.4%) reached agreement in principal for Berkshire to acquire some cash and a Graham subsidiary which includes WPLG - a Miami-based TV station - in exchange for about 1.6M shares of Graham common stock owned by Berkshire.

Besides the acquisition of a local media outlet which The Oracle is fond of, the transaction looks like it allows Buffett to cash out of a highly profitable investment in Graham without paying any capital gains tax.

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Comments (2)
  • wigit5
    , contributor
    Comments (4365) | Send Message
    Might not want to broadcast that you pay no tax lol people tend to riot over stuff like that :p


    Good Job Warren hoping my B shares keep flying hire
    11 Apr 2014, 12:05 PM Reply Like
  • Philip Marlowe
    , contributor
    Comments (1599) | Send Message
    I think the main goal here is not capital gains tax avoidance, but being able to cash out without crashing the stock. Buffet knows that if he sells his large share in the open market, the stock will fall and he will have to take losses. So he makes a deal to take over assets in exchange of stock. He has done similar deals with other companies.
    11 Apr 2014, 12:14 PM Reply Like
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