Invest your own money, let compound effect be your leverage, and avoid debt like the plague.
- Manlobbi
Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
No. of Recommendations: 9
just a reminder of what I posted a year ago. In trumps world the risk of selling puts is higher because he will pick winners and losers. What IF he goes after utilities or insurance companies?
The premiums might not justify the added risks in any industry; this is uncharted territory. The way he's going after Powell should be very disconcerting, to be kind.
Good luck assessing risk the next three years in America and the world.
No. of Recommendations: 14
In trumps world the risk of selling puts is higher because he will pick winners and losers. …
For once I am in absolute agreement : )
Until a few days ago, I had a long running long position in BFH, Bread Financial, that I have held via repeated cash backed short puts. They are primarily a card issuer. I closed the position just recently, Dec 19 I think, as I gradually unwind the last few US positions I have had. This seems to have been a bit of luck...
Today the big man announced plans to cap card rates at 10%, which is somewhat problematic for segments of the market where costs plus credit losses exceed that. Bread stock is down a little over 11% today, which might be justified.
Now, someone might make a case that a rate cap is a good idea in the long run. I won't argue that here. But whether it is or not, welcome to the world of "tweet whim" investing.
Jim
No. of Recommendations: 44
Today the big man announced plans to cap card rates at 10%, which is somewhat problematic for segments of the market where costs plus credit losses exceed that. Bread stock is down a little over 11% today, which might be justified.I spoke briefly with my son-in-law this weekend on this subject. He's a managing director and risk manager for one of the largest US banks. He said if this happens, they'll simply have to issue credit cards to only those whose credit justifies a 10% interest rate. So a large segment of the population will lose access to credit cards.
This came up because we were discussing that XOM's CEO told "the big man" that Venezuela was "uninvestable" under current commercial and legal conditions - not to mention security of assets. He spelled out what would be needed. He also offered to send project management experts to Venezuela provided (a) their security was provided, and (b) both the Venezuelan government and the US invited them. This would permit a realistic estimate of what investment would be needed to make Venezuela competitive in world markets. not investment numbers pulled out of the air - with no US backing. This would be a necessary first step for any major investments in Venezuela - because the decades long payout period of these investments.
"The big man" didn't like that response. I was telling my SIL how proud I was of Woods telling truth to power, and pointing the way to what's needed. And a willingness to help. There's a long post on this at the METAR if anyone is interested.
https://www.shrewdm.com/MB?bid=14These kind of issues simply demonstrate a disconnect between reality and basic economics by the hastily spoken words of "the big man." The unfortunate thing is that such words can impact us all.
No. of Recommendations: 3
“ In trumps world the risk of selling puts is higher because he will pick winners and losers. …
For once I am in absolute agreement : )“ I better rethink it, :):)
No. of Recommendations: 1
As a response to the credit card interest rate limit, I often have the option between low interest rate cards and cash back cards with a much higher interest rate. I take the cash back cards and pay them off every month. So I could assume the 10% limit will have a detrimental effect on the cash back cards.
No. of Recommendations: 3
The “tweet whim” world is one of the many problems with so-called cryptocurrency as well.
Because when I think about currency, is usually wake up and say you know, I sure wish I had an asset class that goes up and down based on the whims and tweets of a billionaire.
Dogecoin did precisely this.
No. of Recommendations: 1
I sure wish I had an asset class that goes up and down based on the whims and tweets of a billionaire
I created a few cryptocurrencies on a silly website. It's easy, and if enough people bid up your meme coin and it gets recognition it becomes a "more legitimate" Solara coin.
Anyway, I'll bring the "asset" if you'll bring the billionaire pumper.
No. of Recommendations: 5
Selling a story for elections possibly? I do find it very interesting, being about 60% invested in Berkshire plus insurance brokers, that our most dominant creature "ever in history" hasn't come after the insurance business with vengeance that would make any populist salivate.
Can you imagine the popularity gain from "I am making an executive order that all insurance companies must lower all rates by 15% for 2026."
