Please be patient and understanding when interacting with others, and avoid getting frustrated or upset if someone does not respond to your posts or if a discussion does not go as you expected. Remember that everyone is entitled to express their own perspectives. Furthermore, even when you don't entirely agree, try to benefit in some way from it.
- Manlobbi
Investment Strategies / Mechanical Investing
No. of Recommendations: 0
WEB paid as high as $367/B share
Anyone getting interested. Seems to be consensus, that despite WEB price paid for B shares, stock not that cheap on outdated P/B analysis?
No. of Recommendations: 1
I nibbled slightly lower twice in dec.....other than haslam settlement,not seeing a reason (yet) to nibble more....may be wrong as its a close call....market seems to want to correct, its overall pretty frothy, it may bring a (slightly) better opportunity..IMHO of course....get what you pay for....
No. of Recommendations: 0
buys in dec were at 356.32 and 354.24 for comparison.
No. of Recommendations: 0
Haslam settled and we now own 100%. We now know WEB keeps adding Japan too.
No. of Recommendations: 0
yes, but I cant really figure out why WEB buying across the Board in Japan....and why he seems (per sumitomo) to be upping his bets.....de dollarization ? upcoming elections in USA ? avoiding europe/uk ?? I think I see stability versus instability,but ...thats just a guess, I really dont get it (japan)...
No. of Recommendations: 0
I should add , I am no stranger to Japan...been many times, done business there....and I still dont get it..
No. of Recommendations: 7
"yes, but I cant really figure out why WEB buying across the Board in Japan....and why he seems (per sumitomo) to be upping his bets.....de dollarization ? upcoming elections in USA ? avoiding europe/uk ?? I think I see stability versus instability,but ...thats just a guess, I really dont get it (Japan)..."
It's profitable for him to do so? Japanese Interest rates remain low (around 1%?) so he is able to borrow at really cheap rates there and use that money to buy higher yielding assets.
No. of Recommendations: 13
It's profitable for him to do so? Japanese Interest rates remain low (around 1%?) so he is able to borrow at really cheap rates there and use that money to buy higher yielding assets.That's right. Munger discussed this during his interview on the Acquired podcast back in the fall:
"The interest rates in Japan were 0.5% a year for 10 years, and these trading companies were really entrenched old companies," Munger said. "They had all these cheap copper mines and rubber plantations, and so you could borrow for 10 years ahead all the money and you could buy the stocks, and the stocks made 5% dividends, so there's a huge flow of cash with no investment, no thought, no anything."
"The only way you could get it was to be very patient and just pick away at little pieces at a time," Munger said. "It took forever to get $10 billion invested, but
it was like having God just opening a chest and just pouring money into it. It was awfully easy money."
https://markets.businessinsider.com/news/stocks/ch...
No. of Recommendations: 6
It's profitable for him to do so? Japanese Interest rates remain low (around 1%?) so he is able to borrow at really cheap rates there and use that money to buy higher yielding assets.
Great answer. I hadn't realized that Japan still has negative interest rates. Seems like a fantastic deal to borrow at 0% and get something reliably stable with a 3.6% dividend yield, and all the more so if you bought it most of it in 2020 at a third of today's price (10% yield), or more a year ago at just over half of today's price (6% yield).
dtb
No. of Recommendations: 2
ah..penny dropped.. tnks !
No. of Recommendations: 7
Oh I don't think it's a place that can ever be figured out:-) I live in Hong Kong and it is my family's favourite preferred holiday destination. It is just magically bizarre and their stickler habits for perfection make everything so great, especially the food. And I should add.... baseball! Much better experience than going to a game back home. Anyway, as for why Warren is increasing the investments I would imagine it has to do with the long term malaise over the economy that has made everything so cheap. The Nikkei is still not back to it's 1989 high, although it's getting very close.
