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Adam Mead's avatar

Buffett at one time proposed a solution to this. He said people could form family corporations to hold the stock and then gift shares of that corporation to heirs, etc.

Personally I think it makes sense to do something like you propose. The price would still be high enough to dissuade the kinds of people Buffett doesn't want to attract. Economically it wouldn't change a thing.

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Mike's avatar

I like your framework and seems rational. The gift tax is a tough one because the shares continue to appreciate and woud have the same issue a few years down the road when they approached the $17k annual limit. Although it would work in the interim. $10K seems like a decent level to help prevent trading shenanigans. Lastly, with Buffett converting and the BRK.A potentially being at $1 miilion a share by 2030 all the points you raise become a larger issue. Thanks for the write-up.

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