Billionaire Warren Buffett says the tax overhaul Congress passed last year will provide a “huge tailwind” for American business.

Buffett’s Berkshire Hathaway reported a US$29-billion paper gain on far-reaching changes to the U.S. tax code, and the conglomerate will benefit from a lower tax rate going forward.

Buffett appeared on CNBC Monday after releasing his annual letter to Berkshire Hathaway shareholders on Saturday.

But Buffett says he’s had a hard time finding acquisitions at reasonable prices, so he’s sitting on US$116 billion cash and short-term bonds.

Read: The case for high-yield bonds amid rising rates

Buffett says he expects he’ll eventually find a good use for a big chunk of that cash, but he may have to wait for a downturn in the economy.

Also read:

Buffett, Amazon, JPMorgan team up to create healthcare company

How Buffett buoys Berkshire Hathaway

How the new U.S. tax law complicates life for U.S. business owners

Originally published on Advisor.ca
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