Subject: Re: Buffett’s Japanese investment
if the dividend itself can cover the interest charge, it’s indeed make a lot of sense.

It still does. Despite the run-up in both Japanese interest rates and the stock prices (lowering dividend yields), it wouldn't be crazy to do the same deal today. Weighted average dividend yield was still 3.54% when I checked last week, and weighted average trailing earnings yield equates to a P/E of 9.28.

My gut feel is that I wouldn't want to be short the yen over the next year, however. If I bought 'em, I'd buy 'em naked.

Jim

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