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Berkshire Hathaway, the investment company of the third richest man in the world Warren Buffett, will add 29 billion USD to its finance value if the proposal newly elected US President Donald Trump to reduce of tax rate come into force. Usually the stocks are measured at the accounting value, so we will see how the reduction of tax rate will assess the market capitalization of the investing company.

The wallet of the holding company already expanded by 8% during trading in New York, immediately after the victory of Donald Trump in the battle for place in the White House.

At the same time, the analysis indicates that Berkshire Hathaway is among the wealthiest, having taxes of about 50.4 billion USD at the end of 2015. The value of the obligation is based on the current 35% tax rate and will fall by about 29 billion USD at 15% tax rate.

Warren Buffett was looking for strategies to reduce taxes for its firm, but during the campaign supported Hillary Clinton. However, billionaire announced that the company will thrive regardless of the outcome of the election.

Analysts state that the change in the book value of the company will not affect the cash, but rather will be an indicator of the financial strength to investors and rating companies. The book value of Berkshire is now 270 billion USD.

