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2/26/2018, 12:23 PM (Source: TeleTrader)
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Buffett: Accounting turned profit figure 'deceptive'

Warren Buffett said on Monday that the changes introduced in the accounting system mean the reported bottom line net income has 'no relevance' to operating results. He called the new profit figures "totally deceptive." "We would have reported... maybe $15 billion more income than we did, under the rules that have just been adopted... We now run gains and losses unrealized just as our stocks go up and down" even if earlier they were already in the balance sheets, the chairman and chief executive of Berkshire Hathaway Inc. told CNBC in an interview.

The tax reform would "save cash" down the road but the money doesn't come immediately, according to the investor nicknamed the Oracle of Omaha. However, he reiterated it was people with "very low incomes" that should have benefited from the cuts.

The billionaire said his corporation was probably a net buyer of stocks this year, even though it cut the holding in Phillips to get below the 10% threshold. He stressed he would choose equities over bonds "any minute," citing possible performances over a 30-year span.

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