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    0 Replies Latest reply on Sep 28, 2014 8:27 PM by jonathan nzali

    Though small business owners, How to all become like Warren Buffet?

    jonathan nzali Scout

      One of the largest and most successful holding companies in the United States, Berkshire Hathaway, is owned by Warren Buffet.

      A holding company is a company, or individual, that owns the outstanding shares of stock of other companies. This structure reduces risk to owners and provides for the ownership and control of a number of different companies. In doing so, a holding company can obtain certain tax-free dividends, based on ownership percentages, along with voting rights held by the company.

       

      Warren Buffet, started like this, buying little of anything left and right in hopes to make a profit and then when he made it acquired bigger and bigger ventures while doing a fantastic job at money saving. Today the small business owner by far prefers the sole proprietorship form. However, could we nevertheless set ourselves to becoming like Warren Buffet (2014 Forbes List, 3rd Richest person on Earth) through baby steps started with the creation of a holding company?

       

      Yes, creating a holding company is very cheap, easy, and by far provides an easier way of legally owning other business interests. What do you guys think? Any thought?