- Qualifications Series 65
- Date of Birth June 17, 1975
- Job Title Trust & Estate Specialist
- Industry Financial Services
- Investment Experience 7 years as a self-directed investor
Blog - Lucas Krupinski
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Exitted FXI, purchased BNI November 06, 2009
In a further move to reduce volatility, I've removed FXI (Ishares Xinhau index) and purchased BNI (Berkshire Northern). There's very limited upside for BNI, given the impending purchase by Berkshire Hathaway, but there's still an opportunitiy for positive return in the next few months.
Supposing the deal takes 2 months to conclude, and the final price is $100/share, at the $97/sh purchase price, thats a 3% return in 2 months, or 18% annualized. There is a bit of risk to the transaction, in that if it gets rejected for some reason, then BNI may fall to it's price level before the transaction was announced. I'm feeling like that's doubtful, as ownership by Berkshire most likely clear any regulatory approvals, given Berkshire's history, etc. I'll note that I have no offsetting hedge on this transaction, but feel like there's quite a bit of certainty to it.
Late to the game on this, but if it all goes through, there will be a little bit of further upside gain and the ownership of shares of Berkshire Hathaway at the end of the tunnel, something I've avoided so far because of the lopsidedness it would cause to my portfolio.
Related Stocks: BNI, BRKB, FXI
