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Posted by
Two Blokes Jul 6 -
Filed in
Stock
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OMAH offers a high 15% distribution rate by selling call options on Berkshire's top holdings, but this leads to inevitable NAV decay over time. While OMAH may outperform in flat, volatile markets, its option-selling strategy contradicts Buffett's long-term value creation principles, and underperforms in bull markets. OMAH's higher management fees, and lack of access to Berkshire's cash and unique assets, make it less attractive as a long-term investment, compared to BRK.B.
