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Corporate tax cut will bump up the FCFEs of companies who won’t be impelled / compelled to pass on the benefits of the tax cut by way of reduced prices of goods & services - you know which type of companies these are 😀
2/n As Buffett explained w.r.t. textile business: benefits of a lower industry-wide baseline cost structure (achieved through capex in this e.g.) prove to be temporary in a commodity like business. 
3/n Likewise, there is a possibility (not certainty) that for many commodity like businesses, the bump up in RoEs will prove to be temporary as market place dynamics will ensure that excess RoEs are competed away.
4/n Also:
“In a business selling a commodity-type product, it’s impossible to be a lot smarter than your dumbest competitor.” - Buffett
“In a business selling a commodity-type product, it’s impossible to be a lot smarter than your dumbest competitor.” - Buffett
5/n But consumers and the society at large are likely to benefit from the resulting reduced prices. Competitiveness of exporters and of domestic companies facing the threat of imports will be enhanced - improving their survivability.
6/6 As Taleb writes in the The Black Swan: invest in preparedness, not in prediction.
Similarly, investors in commodity like businesses, need to be alert to the possibility of high RoEs being competed away.
Similarly, investors in commodity like businesses, need to be alert to the possibility of high RoEs being competed away.
