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MrRodgers -> RE: Warren Buffet made $12 billion in 2016 (12/29/2016 3:18:27 PM)
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What's significant if not surprising, is that I am sure most of that $12 billion or so is in what's called...capital gains.
First, they are not realized until all of the paper (or property) upon which those gains are built...is sold. Thus to have actually 'made' those $12 billion, Buffet would have to sell enough to get that cash. Even then, the net gains would only be those $12 billion...minus his basis, i.e., the amount of investment it took to realize $12 billion in gains.
I see two main problems.
1) One of the easiest ways to 'make' money is with money and that which is used for buying and selling of property or paper. There are many that will tell you and I agree, that this kind of investment draws too much capital away from investment in the economy at large, i.e, doing something (services) and making something. (manufacturing) Thus these investments rank last in creating jobs and increasing GDP.
2) These gains draw to much capital because they are subject to about 1/2 or less sometimes slightly more than 1/2 of the corporate tax rate or for creating or engaging in services or manufacturing and also 1/2 of the highest tax rate on labor. Thus both 1 and 2 skew the economy (and capital) toward speculation and debt paper and away from real economic growth and job growth.
Plus there are those that will tell you and I agree, that the returns enjoyed by Buffet (BH) most likely, also far and away...outweigh the risks taken.
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