Warren Buffet's strategy

**zhiyuzh** Sat Mar 29, 2008 3:29 pm

Warren Buffet's strategy
Since there are very few new buyout deal, I guess our workout targets are limited.

I was reading Warren Buffet's letter to shareholders, can BIRTP do similar things like what he did?

1. He bought bonds "in 2001 and 2002 we purchased €310 million Amazon.com, Inc. 6 7/8 of 2010 at 57% of par."

2. Buy Brazil currency(real), "Here’s the year-by-year record (indexed) of the real versus the dollar from the end of 2002 to yearend 2007: 100; 122; 133; 152; 166; 199."

3. Sell put options, "various put options we have sold on four stock indices (the S&P 500 plus three foreign indices). These puts had original terms of either 15 or 20 years and were struck at the market. We have received premiums of $4.5 billion, and we recorded a liability at yearend of $4.6 billion."

**zhiyuzh** Sat Mar 29, 2008 4:03 pm

last year he also said "If Charlie and I had $500,000 or $2 million to invest, we’d find little things we could do, not all of it in stocks."

Should we look for those kind of opportunities?

**blast_investor** Sat Mar 29, 2008 4:06 pm

Hi zhiyuzh,

Warren Buffett is our newsletter investment role model to learn from.

Yes, we are doing limited stocks for investment, and we don't believe in large and huge amount of stocks purely for the sake diversition.

**zhiyuzh** Sat Mar 29, 2008 4:09 pm

I mean can we buy bonds or sell put options too? Can we as retail investor do that? where can we buy e.g. those amazon bonds Buffet mentioned?

**blast_investor** Sat Mar 29, 2008 4:12 pm

zhiyuzh wrote: I mean can we buy bonds or sell put options too? Can we as retail investor do that? where can we buy e.g. those amazon bonds Buffet mentioned?

You could do that through Brokers.

Newsletter typically don't do that kind of derivatives.