3️⃣ “AI Bubble Wrap” — Our Warren Buffett stock pick. Cali’s Billionaire Tax. Jollibee’s spaghetti IPO. +Unhappy Hour

What It Covers

California proposes first-ever billionaire wealth tax targeting 250 residents with 5% levy, Jollibee Filipino fast food chain plans US IPO, and Berkshire Hathaway becomes portfolio hedge pick post-Warren Buffett retirement.

Key Questions Answered

• •Billionaire Tax Structure: California's proposed wealth tax would charge billionaires 5% of net worth over five years, applied retroactively to January 2025 residents, potentially raising $100 billion but risking long-term revenue loss if wealthy residents relocate to zero-tax states like Texas or Florida.
• •Wealth vs Income Taxation: Billionaires avoid traditional income taxes by holding stock instead of taking salaries, borrowing against assets rather than selling, making wealth taxes more effective than income taxes for addressing inequality, though federal implementation would prevent state-by-state tax arbitrage.
• •Asian Investment Wave: Despite trade tensions, Asian companies including Jollibee, Luckin Coffee, and Michu bubble tea are investing directly in US operations rather than exporting, avoiding tariffs entirely while following diaspora communities and capturing American consumer markets with unadapted authentic menus.
• •Berkshire Post-Buffett Strategy: Berkshire Hathaway holds 37% cash ($400 billion earning 4% interest), 35% in 68 wholly-owned companies generating $400 billion revenue, and 28% in 37 stocks, positioning it as downside protection if AI bubble bursts while new CEO Greg Abel's performance remains unproven.