Retail investor: Options are gambling. I stick to real investing like Buffett.


Me: You know Buffett sometimes sells puts, right?
Retail investor: ...no he doesn't. He's a value investor.
Me: He's collected BILLIONS in premium selling puts on companies he wanted to own cheaper. Coca-Cola back in the 90s. It's documented.
Retail investor: Wait, seriously? Why does nobody talk about that?
Me: Because "Buffett the patient genius" sells better than "Buffett collects premium like an insurance company." But that's literally what he does... & his whole empire is built on insurance float. Collect money today, maybe pay out later, invest the difference.
Retail investor: So selling puts is... the Buffett move?
Me: Selling 1+ year puts on great companies at prices you'd love to own them... that IS value investing. You just get PAID to place the order.
The greatest investor alive gets paid to wait.
KO-3.95%
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pinned