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Strategies & Market Trends : Value Investing

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To: Madharry who wrote (33812)3/16/2009 5:15:14 PM
From: MCsweet  Read Replies (2) of 78958
 
Berskhire puts,

The puts are exercisable only in the future, but for now they are a loss and liability, and I would not argue against a ratings downgrade for such a position (although to be honest, I don't know the size of the liability versus Berkshire's capital base). Sure it could work out fine, but it could also become a much deeper hole.

A naked put is about as speculative as it gets, even if it is long term. As for owning Berkshire, I have no opinion either way.

MC
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