alwaysonit
Registered User
- Messages
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I'd rather be 45% Apple than diversified.Also consider investment trusts like Mnks, FCIT, JAM, SMT etc. They're treated like shares for taxation purposes and are much more diversified than BRK. Last time I checked BRK was about 45% Apple. I wasn't comfortable with that myself.
Can you please explain the US estate tax? I'd been using BRK.B exactly as the OP said, and I wasn't aware of this.Among those "caveats" is the US Estate Tax if you die.
A cofounder of Moneycube.ie did an AMA on Reddit yesterday. One of the things he said was that he has unfortunately not detected any move towards treating ETFs like regular shares, so we may be overly optimistic in hoping that it might happen soon. For distributing ETFs I cannot see any reason to treat them differently from regular shares. For accumulating ETFs it seems so much cleaner for people to pay income tax on dividends even though those dividends are reinvested, and then they could also be treated like regular shares.
Basically, if you own more than $60k of US assets (e.g. US shares) and you die there’s a US Estate Tax hit even if your spouse is inheriting the assets. The rate rises to 40% pretty quickly.Can you please explain the US estate tax? I'd been using BRK.B exactly as the OP said, and I wasn't aware of this.
I haven't checked what % Apple is within BRK but it's important to remember that what you are referring to is the % of Berkshires Investing portfolios. But Berkshire fully owns a huge number of businesses that do not appear on its investing portfolio, including truly huge companies like Geiko, Berkshire Hathaway Energy and BNSF. Berkshire is far more diversified than its investment portfolio would suggest. Berkshire is definitely a good substitute for a US ETF.Last time I checked BRK was about 45% Apple.
Investment Trusts are also a good alternative.Also consider investment trusts like Mnks, FCIT, JAM, SMT etc. They're treated like shares for taxation purposes
That's not diversification though far from it. What about energy, industrials , food , agriculture, commodities ,health care etc , all areas that are rising rapidly in price now due to inflation. Technology companies are not diversified and are actually being affected negatively by inflationI half about half my portfolio in brk b and the other half in 7 tech stocks (not aapl obviously). Allows me reasonable diversification
Berkshire has considerable energy holdings, 100 billion by some estimates.That's not diversification though far from it. What about energy, industrials , food , agriculture, commodities ,health care etc , all areas that are rising rapidly in price now due to inflation. Technology companies are not diversified and are actually being affected negatively by inflation
Great point and one I am not happy to take on.Among those "caveats" is the US Estate Tax if you die.
Why is Berkshire not on this list?Here's a list that might be worth a look:
Largest conglomerate companies by Market Cap
List of the largest conglomerate companies by market capitalization, all rankings are updated daily.companiesmarketcap.com
In practice how can the US enforce their Estate tax? I can see how it would work on real estate property in the US as it could be demanded during the legal process of the sale, but shares?Great point and one I am not happy to take on.
Seems we would be limited to only invest in conglomerates that are non-US which rules out a great chunk.
Why is Berkshire not on this list?
Non-compliance is widespread -In practice how can the US enforce their Estate tax?
Incredible stats in relation to the numbers of people filing returns.Non-compliance is widespread -
Look who's getting away with not paying this estate tax
Foreign holders of U.S. assets who fail to pay estate taxes could be costing the U.S. Treasury billions of dollars.www.cnbc.com
What does the AAM brain trust say on these? To me they seem like much better alternatives to Berkshire - no estate tax, no concerns about what happens when Buffet is no longer involved etc. Is Sterling currency risk the only downside compared to buying say an S&P500 ETF?Also consider investment trusts like Mnks, FCIT, JAM, SMT etc. They're treated like shares for taxation purposes and are much more diversified than BRK.
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