So Uncle Warren realises that the FED pulled a fast one on him re his Oxy deal.
They changed the FRAME with their 40% M2 Print.
What’s 8% interest on your prefs when inflation is 10%…..well its called going backwards.
But suing the FED wont work.
So what can he do…… He can buy cheap equity insurance…..by buying the common ….lots of common.
He can have a frame congruent investment and have the frame forces work for him and not against him.
If the value of his preference shares is to be transferred to the common shareholders due to the actions of the sacred printing machine contained in the Eccles monetary temple….. Then he is going to make sure he is the common shareholder who benefits from that wealth transfer.
Remember Oxy also has a lot of debt as well that is being transfered… in real terms… to the common shareholders at a rate of CPI per annum.
I would also like to make a point about Chapter 2 of the Intelligent Investor. I think the Chapter on inflation is rather cursory. Nowhere does it address the issue of inflationary transfer…. a rather big omission.
Originally posted at Capitalstool, the Stool Pigeons Wire
