put it to the man!

Here is a free tip from Warren Buffet.

Go to Sedar and read what he does. That's it.

Oh and for a laugh read his annual letters @ Berkshire's website. Note the frills and gimmicks that this site offers!

What i am referring to is Warrens most recent action. He has been selling puts and lots of them. Now why would anyone 'sell' puts in a bear market you ask? Easy.

He as always is confident in his assessment in a company and bets just so. Instead of just paying market prices for Burlington Northern he just sells puts. Now he is getting these shares for less than current price.... or he just made some quick money with no money.

Now i don't have much money left to play with. I am in the same situation that Collectors Universe and Connacher Ceo's were recently. Well not exactly but i may as well be. Prices are so low and continue to fall. My wife is scared out of her wits and so i agree to remove half money (which was in cash anyways waiting for cheap deals) and put it on the mortgage. Hmmm. Don't you hate it when outside of the market forces effect your decisions!

Anyways to make my point, if you find companies that you deem cheap why not look to see if selling puts on them could lower your price even further?

A few final thoughts. This has been a brutal month. It was only a few % and days away from being the worst month for the markets in the past 100 years. Sept 1931 will still stand for now as the late October rally stands. Horrible no good very bad market. To say this market is bad would be just slightly understating it.

I would like to put some money in the market by borrowing against my home equity. I am, or should i say my wife, not quite comfortable with this idea yet. One company i have on my radar is akt.a. This company is still making money with no debt, several dollars per share in cash.

I am part way through 'Common stocks uncommon profits' and find it a very intriguing book.

to be continued. ..