I haven't done much special situation investing lately, but today presents an opportunity that's too good to pass up. Rarely does one have the chance to ride the coattails of a master.
Warren Buffett has decided to go whole hog and buy BNI for $100 per share:
The offer comprises both cash and Berkshire Hathaway stock. I'll have more to say about this tomorrow as I believe I've succeeded in deconstructing Uncle Warren's valuation methodology. I played this by selling Jan 11 puts at 95 on BNI. This is slightly under the $100/share acquisition price, with the transaction expected to close in about 3 months.
Thank you, Uncle Warren, and not just for this opportunity to make some quick cash. Thank you for discussing your investment philosophy in public over these many years, because I think I finally understand it.
Warren Buffett has decided to go whole hog and buy BNI for $100 per share:
Warren Buffett's Berkshire Hathaway Inc. on Tuesday agreed to buy Burlington Northern Santa Fe Corp., making a $34 billion bet on the future of the U.S. economy.
The offer comprises both cash and Berkshire Hathaway stock. I'll have more to say about this tomorrow as I believe I've succeeded in deconstructing Uncle Warren's valuation methodology. I played this by selling Jan 11 puts at 95 on BNI. This is slightly under the $100/share acquisition price, with the transaction expected to close in about 3 months.
Thank you, Uncle Warren, and not just for this opportunity to make some quick cash. Thank you for discussing your investment philosophy in public over these many years, because I think I finally understand it.
