Piratery: A Warren Buffett of Booty

by Julia Mezzanine Tranche

In connection with recent recommendations on piracy, Long or Short Capital’s managers have been closely tracking developments in the privateer market. So too has one famous Nebraskan investing guru.

We have uncovered renewed interest by Berkshire Hathaway in piratery and, in fact, the adoption of piracy directly by Berkshire’s Warren Buffett, and therefore we are boosting our recommendation.

Recommendation: The piratery theme is approaching the mania stage, and as such, we think that it may be time to adjust your investments from direct piratery to investing in the enablers of piratery. Note that value investors like Berkshire Hathaway (BRK.B) are noting this as well. As we recommended in our Long Mudpies analysis, in sectors with a “gold rush” mentality, it’s the producers of the “picks and axes” that benefit the most surely. One way to play this would be to pick up some long dated call options on both tier 1 and tier 2 eye-patch manufacturers; currently, options on the brewers of the finest rums in the seven seas are all trading at premiums that make them less attractive, but still delicious.

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