Oddbean new post about login | logout BIG BREAKING: Warren Buffett has shocked the financial world by putting $1 billion into MicroStrategy bonds! 🤔 Could this be his way of indirectly stepping into the #Bitcoin scene? FOMO is real! https://m.primal.net/MePb.jpg
For further clarification, in Insurance space, convertible bonds are regulatory arbitrage. So, Insurance companies get ZERO credit to leverage against #Bitcoin on balance sheets, but they get 55% credit for holding unrated convertible debt in an equity.
Interesting, but suspect this allocation does not reflect Buffett's decision, but rather the bonds were bought by insurance subsidiaries whose investments are likely not directly managed by Buffett (ie, some CIO has guidelines within which they have autonomy).
Don’t forget there are new leaders in that company - it’s no longer just Buffett and Munger
