Berkshire Hathaway has reported that it expects to receive a 12 percent increase in book value, a yardstick used to measure company performance by calculating assets minus liabilities. The increase, worth about $37 billion, is credited to the recent tax cut bill signed into law by President Trump.
Barclays Capital analysts sent a note to its clients on Monday stating that the Warren Buffett-owned conglomerate could expect to see the increase for the last quarter of 2017 soon, “…because Berkshire can lower its tax bill on investments that have risen in value.”
Berkshire owns subsidiaries like Geico and BNSF Railroad, and has long been seen as a beneficiary of corporate tax cuts. They saw their Class A shares reach $300,000 just three weeks ago, shares that are now expected to reach $357,000, with Class B shares projected to rise to $238 from $215.