Tag Archives: #WarrenBuffett

Tax Tips

When you get rich you’re going to need these tips. Than you can donate to the site!

http://www.bloomberg.com/news/articles/2012-04-17/how-to-pay-no-taxes-10-strategies-used-by-the-rich

Edit: Related to taxes, an impressive example of the power of compounding and deferred taxes:

Imagine that Berkshire had only $1, which we put in a security that doubled by year-end and was then sold. Imagine further that we used the after-tax proceeds to repeat this process in each of the next 19 years, scoring a double each time. At the end of the 20 years, the 34% capital gains tax that we would have paid on the profits from each sale would have delivered about $13,000 to the government and we would be left with about $25,250. Not bad. If, however, we made a single fantastic investment that itself doubled 20 times during the 20 years, our dollar would grow to $1,048,576. Were we then to cash out, we would pay a 34% tax of roughly $356,500 and be left with about $692,000.

Source: http://seekingalpha.com/article/3438006-berkshire-hathaway-importance-deferred-taxes

 

HBR Review of Zara Stores

I've never actually been in one..
I’ve never actually been in one..

I recently read about Zara in a book titled “Understanding Michael Porter” by Joan Margretta. The founder Amancio Ortega is now richer than Warren Buffett. Think about that!

Some common themes seem to be decentralized operations and incentivizing line managers to be “owner/operators”

http://bdigital.uao.edu.co/bitstream/10614/2572/1/610042-PDF-ENG.pdf