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Politics : Idea Of The Day

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To: IQBAL LATIF who wrote (12721)10/24/1997 1:28:00 PM
From: Mark  Read Replies (1) of 50167
 
Iqbal, you and Buffet, master bondsmen?

Your bond strategy looks interesting and quite sound. It's very helpful to know your strategies used to protect your portfolio since the average investor is betting only in one direction. Sometimes it's dangerous to follow someone's equity/option strategies without seeing the "fully hedged" picture. I am suggesting that new/average traders consider what other protective positions you and other experts have in place when they consider following equity/option trades.

In other words, advice to for instance "buy xyz" takes on a different dimension if you also say "and if xyz drops I still make money on oex puts" - this puts things in perspective and decreases the likelihood that someone will follow the trade without some downside protection.

Perhaps, as you have done so graciously in the past, it would be useful if you consider some trades that you think will do well for those that don't have the resources (capital, agility, etc) to effect proper hedges.

Peace to you,

Mark
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