WARREN Buffett's Berkshire Hathaway could get a $29bn boost to its book value if Donald Trump is able to slash the US corporate tax rate to 15 per cent from 35 per cent, Barclays Capital wrote yesterday.
Trump's proposed reduction could help Berkshire lower its net deferred tax liability to $21.6bnfrom $50.5bn, excluding sums associated with its regulated utility units, Barclays analyst Jay Gelb said.
Shareholders could reap the benefit, particularly because Buffett considers book value, a measure of assets minus liabilities, a key measure of Berkshire's growth. Gelb said a $29bn increase would equal about 11 per cent.
"We would view this magnitude of increase as favorable for Berkshire shares since it is generally valued based on price-to-book value," Gelb wrote.
Buffett endorsed Trump's rival Hillary Clinton for President.
(c) 2016 City A.M., source Newspaper