@lavern_spicer That’s where you’re mistaken. The WORLD tuned in to watch the Bad Bunny half time show. The world does not watch NFL. The greatest sport in the word is FÚTBOL. 5 Billion people tune it to watch the World Cup. Super Bowl cannot even reach 150M.
@kingscott00@AndrewYang Reagan, a Republican, pushed for global free market. For the last 100 years AFTER the US was a Globalist market we’ve had the most technological advances in history. Your boy is actively ruining that.
I was really curious about Buffett’s ownership of the Japanese trading companies and wanted to understand why he did it?
As it turns out, the trade is really brilliant.
He found a group of companies that had very low volatility, grew earnings predictably, had a good dividend yield and, in most cases, were buying back their stock.
But it’s what he does next which is so awesome:
As far as I can tell, he issues Japanese debt at very low rates, uses the proceeds to buy the stocks and then uses the dividends he then gets from owning these stocks (which are greater than the interest rates he’s paying to borrow in the first place) to pay the coupon!
What’s left over is a near-risk less bet where he’s borrowed trillions of Japanese Yen for free to buy billions of dollars of companies growing earnings in the mid teens.
And over a 10-20 year holding period, he becomes insensitive to currency vol and so really can’t lose money. He locks in the earnings gains over this period along with whatever spread he keeps between his dividends and his coupons.
The only way this trade blows up, I suppose, is if the Japanese economy totally craters but these companies are sufficiently exposed to the rest of the world that this outcome is pretty unlikely.
It’s inspiring to see folks act this intelligently at scale. That’s why he’s the 🐐.