Closest investment to a US domiciled ETF?

landlord

Frequent Poster
Messages
892
As US domiciled ETFs and all the tax advantages associated with them are no longer available to us, has anyone considered just sticking a large chunk of their funds in Berkshire Hathaway, or other similar companies with large diversified multinational holdings.

Pros

Very diversified multinational holding
Managed by the legendary warren buffet and Charlie munger.
33% CGT (not 41% as with “accumulating” ETFs...accumulating is where dividends are automatically reinvested)
Losses can be offset
And the company pays no dividends (a benefit to those in the higher tax bracket).
(This would I think be the closest thing to a US domiciled ETF which accumulates dividends rather than paying out. Of course this type of ETF which would be very popular for many I believe doesn’t exist. Also US ETFs are not available any more to Irish based folk.)
I don’t think their is any specific management fee like an ETF.

Cons

Nobody knows what impact the passing of buffet and munger will have on the stock price. I believe they are both in their 90s.
I am sure their are other cons...?

Anyone know of other similar companies?
I think this company has been discussed before many years ago but I couldn’t find the thread.
 

lledlledlled

Frequent Poster
Messages
266
Investment Trusts are taxed with CGT as opposed to income tax. They might suit you.
As an aside, I would vote for the first party who looked at improving the crazy taxation of shares in Ireland
 

Dar2100

Registered User
Messages
8
Been doing this for a couple of years now. Sold my vanguard etfs and moved over to Berkshire Hathaway and Markel corporation. As you say no 8 year seemed disposal and no dividend leakage. Dividend leakage alone is worth a 1% under performance compounded . I worked out the difference between the options and think this method is the best in Ireland imo.
 

Gordon Gekko

Frequent Poster
Messages
3,844
Is there merit in simply buying an accumulating fund that’s subject to exit tax?

One asset, so the CGT loss point is not relevant. Gross roll up for 8 years on income that could otherwise be taxable at 52-55% on an annual basis versus a flat-rate of 41%. Yes, 41% is worse than 33%, but has it been modeled, or do people just ‘feel it’? And what about leakage of withholding taxes? Funds have rooms full of accountants whose job it is to reclaim taxes.
 
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