Tren Griffin+ Your Authors @trengriffin I work for Microsoft. Previously I was a partner at Eagle River, a private equity firm established by Craig McCaw. I am on the board of directors of Kymeta. Sep. 29, 2019 1 min read + Your Authors

1/ "We pretty much don’t make a lot of money; nor have we ever because it’s never been our goal to pay taxes! We have fat gross operating profit margins and spend almost everything down to where we don’t make money to further grow the firm."

Ken Fisher 

2/ "I'd go to shareholder meetings and someone would ask about earnings, and I’d say 'I think you’re in the wrong meeting.’ If you start generating earnings you’ve stopped growing and the government is now participating in what otherwise should be your growth metric.” John Malone

3/ "So long as Wesco doesn't liquidate, and doesn't sell any appreciated assets, it has, in effect, an interest-free 'loan' from the government equal to its deferred income taxes on unrealized gains, subtracted in determining its net worth." Charlie Munger 

4/ The tax code only defers taxes - they don't disappear. The tax code is designed to create incentives to invest in growth.

"Some day, parts of the interest-free 'loan' may be removed as securities are sold. Wesco’s shareholders have no perpetual advantage." Charlie Munger

5/ "If you’re going to buy something that compounds for thirty years at fifteen percent per annum and you pay one thirty-five percent tax at the very end, the way that works out is that after taxes, you keep 13.3 percent per annum." 

You can follow @trengriffin.


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