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Forbes.com: Buffett's $12.3B Year Is Biggest Billionaire Windfall

Forbes.com: Buffett's $12.3B Year Is Biggest Billionaire Windfall

(Getty/Paul Morigi)

By    |   Tuesday, 27 December 2016 04:27 PM

For investing guru Warren Buffett, 2016 was a very good year, indeed.

Shares of Buffett’s firm Berkshire Hathaway soared 20 percent in 2016, helping to boost Buffett’s personal fortune by $12.3 billion – more than any other billionaire in the United States, Forbes.com reported.

Buffett is now worth $74.2 billion, enough to make him the second-richest person in the world, behind only Bill Gates, who is worth $84 billion, according to Forbes.com reported.

“Buffett was a firm supporter of Hillary Clinton during the 2016 presidential campaign, but he scored most of his gains this year, some $7.8 billion, after she lost the election in November. Buffett’s fortune rose $3.6 billion in the two days following the election alone when Berkshire Hathaway stock jumped 6%,” Forbes reported.

Fracking titan Harold Hamm is $8.8 billion richer now compared to December 31, 2015, the second biggest dollar gain of anyone in America. Shares of his oil giant Continental Resources soared 136 percent thanks to the rising price of crude oil. Today he is worth $15.1 billion, Forbes reported.

Amazon CEO Jeff Bezos also had a big year, adding $6.6 billion to his coffers as Amazon shares rose. And gambling tycoon Sheldon Adelson gained $5.6 billion.

Meanwhile, Berkshire could get a $29 billion boost to its book value under tax-rate cuts advocated by President-elect Donald Trump, according to Barclays Plc.

“We would view this magnitude of increase as favorable for Berkshire shares since it is generally valued on price to book value,” Barclays analysts led by Jay Gelb said in a note to investors.

The prospect of lower taxes is also helping. Gelb’s analysis covered a net deferred tax liability of about $50.4 billion at the end of 2015, a figure that includes potential costs if Buffett sells investments that gained in value, Bloomberg reported.

The review doesn’t take into account the DTLs at some energy operations, where benefits wold be enjoyed by utility customers and not Berkshire shareholders.

The value of the liability is based on the current 35 percent tax rate and would fall by about $22 billion at a 20 percent corporate tax rate and drop by $29 billion at 15 percent, Gelb wrote. Trump has called for cutting the business tax rate to 15 percent, while the House Republican “blueprint” for tax changes proposes 20 percent.

(Newsmax wire services contributed to this report).

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The Oracle of Omaha is now worth $74.2 billion, enough to make him the second-richest person in the world (behind only Bill Gates, who is worth $84 billion), according to Forbes’ calculations.
warren buffett, billionaire, berkshire hathaway, forbes
Tuesday, 27 December 2016 04:27 PM
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