Hi Austin: That's awesome - I hope DQ lives up to expectations in Taipei!
On the yen notes, I am the furthest thing from a currency expert but I believe Buffett uses them for a combination of these reasons: To match the currency of his investments in the trading houses in case of fluctuation and because the interest rates are so low. In a lot of these cases, shares of the sogo shosha that he buys with the proceeds actually pay out higher dividend yields than the interest rate on the debt.
Still not really sure how these senior notes work and why they are issued. What are they really for, though?
Wow, DQ in Taiwan! I'm going to go try it there (I'm in Taipei)!
Hi Austin: That's awesome - I hope DQ lives up to expectations in Taipei!
On the yen notes, I am the furthest thing from a currency expert but I believe Buffett uses them for a combination of these reasons: To match the currency of his investments in the trading houses in case of fluctuation and because the interest rates are so low. In a lot of these cases, shares of the sogo shosha that he buys with the proceeds actually pay out higher dividend yields than the interest rate on the debt.
The dividends more than pay the interest on the loads? That's certainly a "no-brainer" that Charlie would have loved.
I love the way Charlie once described these Japanese investments: "It was like having God opening a chest and just pouring money into it.”