Warren Buffett sees $11 billion boom on Donald Trump win
For someone who sided with the rival of Donald J. Trump in US presidential election, Warren Buffett has been doing quite well in the post-election period. The surge in bank stocks have appeared to benefit Oracle of Omaha, as his investment portfolio has exploded after the victory of Donald Trump due to the speculations of higher rates and less regulations on Wall Street.
Since the Republican candidate won the presidential race, bank stocks have raised by 13.5 percent in total as measured by the KBW Nasdaq Bank Index, and Buffett’s Berkshire Hathaway’s shares increased by 20 percent, adding $ 3.8 billion in his personal wealth.
The multi-billionaire who is known for making sound business decisions had purchased warrants back in 2011, which give him the right to purchase 700 million shares of Bank of America for $7.14 each, which would add few more billions in his fortune.
These figures combine with Warren Buffett’s earning from his other top financial holdings take the total post-election earnings of the business magnet to $ 11 billion. So far, the victory of Donald Trump has been proven very profitable for the entrepreneur.
Before Trump’s victory, his rivals, political pundits and economists have dismissed Trump’s policies to “Make America Great Again” as nothing but hoax, however, if he aims to do what he asserted while campaigning then it is a good news for businesses operating in United States.
According to the official campaigning site of the Republican nominee, Trump’s economic vision includes reduction in taxes and elimination of anti-growth regulations. During elections he touted to “reform policies with a pro-growth tax plan, a new modern regulatory framework, an America-First trade policy, an unleashed American energy plan, and the “penny plan.”
The president-elect, if continues to follow his economic vision word-by-word then banking and financial sector of USA is expected to garner more benefits than any other sector. However, it is too early to say what benefits or drawbacks Trump’s policies would produce on the economy, until he assumes office.
The surge in banking stocks are based on the anticipations that Trump’s policies will be implemented as planned. These anticipations are fueled by his pro-business attitude, but since Donald Trump has been widely criticized for his inability to comprehend the prevailing economic situation and social atmosphere, it is still doubtful whether he can reduce taxes while removing anti-growth regulations.
Despite the fact that Buffett did not support Donald Trump, last week he mentioned that the president-elect deserves a chance. Time is the best judge, so unless the president-elect completes the transition process and takes charge, we can do nothing but speculate!