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Buffett: Berkshire Hathaway made $29 billion from GOP tax cuts

Warren Buffett.
Warren Buffett. Photo: Daniel Zuchnik / WireImage

Warren Buffett released his annual letter on Saturday, in which he tells shareholders that his company, Berkshire Hathaway, made $29 billion in 2017 because of the GOP tax cuts.

"Berkshire's gain in net worth during 2017 was $65.3 billion...A large portion of our gain did not come from anything we accomplished at Berkshire. The $65 billion gain is nonetheless real – rest assured of that. But only $36 billion came from Berkshire’s operations. The remaining $29 billion was delivered to us in December when Congress rewrote the U.S. Tax Code."
— Warren Buffett
  • He encouraged investors to stick with stocks, despite being "riskier...than short-term U.S. bonds:" "It is a terrible mistake for investors with long-term horizons – among them, pension funds, college endowments and savings-minded individuals – to measure their investment 'risk' by their portfolio’s ratio of bonds to stocks. Often, high-grade bonds in an investment portfolio increase its risk."
  • He said Berkshire needs "to make one or more huge acquisitions," and that the company had $116 billion on hand at the end of 2017: "Our smiles will broaden when we have redeployed Berkshire's excess funds into more productive assets."
  • In regard to acquisitions, he said "a sensible purchase price" has "provided a barrier to virtually all deals we reviewed in 2017."
  • He laid out "four truly major dips" Berkshire shares saw in 1973-1975, 1987, 2000, and 2009: "This table offers the strongest argument I can muster against ever using borrowed money to own stocks. There is simply no telling how far stocks can fall in a short period."
Haley Britzky 1 hour ago
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Zuckerberg happy to testify if it is "the right thing to do”

A portrait of Facebook founder Mark Zuckerberg
A portrait of Facebook founder Mark Zuckerberg. Photo: Jaap Arriens / NurPhoto via Getty Images

Facebook CEO Mark Zuckerberg said he would be "happy" to testify before Congress if it was "the right thing to do," in an interview with CNN's Laurie Segall.

Why it matters: Facebook has been under the microscope lately for what Zuckerberg called earlier today the "Cambridge Analytica situation." Zuckerberg said if he as the "person...who will have the most knowledge," than he'd be the one to testify in the face of Facebook's data-collection situation.

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Zuckerberg admits Facebook "breach of trust"

Facebook CEO Mark Zuckerberg walks wearing a t-shirt, with trees behind him
Photo: Drew Angerer/Getty Images

Mark Zuckerberg weighed in on what he called the "Cambridge Analytica situation" today in a Facebook post, saying there was a "a breach of trust between Facebook and the people who share their data with us and expect us to protect it. We need to fix that."

Why it matters: Facebook has been under extraordinary pressure from lawmakers, regulators and Wall Street to respond to the issue.