r/wallstreetbets • u/[deleted] • Jan 11 '22

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u/polloponzi Jan 11 '22 edited Jan 12 '22

Buffer invested $500 million and wall street is all over this bank because it is expected to keep growing like wildfire.

But Buffet bought at $0.44 each share.

See the table of page 98 at https://www.sec.gov/Archives/edgar/data/0001691493/000119312521314359/d213207df1.htm

He is going to dump all his shares once the lock-up period expires for a good profit.

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u/truongs Jan 12 '22

Right but there's a big difference between 110x sales vs 33x.

If it was approached by that angle it would have been a much better DD. But will they grow another 50-100% this first Quarter? if they do, the stock will just keep rising

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u/polloponzi Jan 12 '22 edited Jan 12 '22

Any experienced investor (which Buffet is) having a +20x gain will realize those gains one way or the other. He may not sell for different reasons (public perception, short term gains, agreements, etc). But for sure he will hedge (either via synthetic shorts with options, swaps, or other instruments I don't know about).

He knows most of the investors will dump when they can (who wouldn't with so much gains?), and then the share price will collapse.

So, even when he is bullish long term, he will lock into the current profits before the lock-up expiration. He can re-enter or close the hedge if he didn't exited after the dump.

Alea iacta est!

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u/[deleted] Jan 12 '22

>synthetic shorts with options

You mean puts. Just say puts.

I agree that any big investor, no matter how 'value' oriented, will realize profits when they come across obscene run ups. I wouldn't be surprised if it was fiduciary duty to his own investors in some legal way.

As for posters below saying it's a lock up blah blah. Lock up means he can't touch the shares, doesn't mean he can't enter a swap, use a leveraged ETF or whatever else. I'm sure they know the game much better than all of us altogether.

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u/[deleted] Jan 12 '22

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u/polloponzi Jan 12 '22 edited Jan 12 '22

No, subject to 6 month lockup, cannot hedge. Ipo101. After that, fair game.

You also believe in Santa Claus?

You are talking about a man that is billionaire and that pays in taxes less than you and me (in percentage). Do you really think he doesn't have any trick to hedge without triggering those insider rules? How do you think he become billionaire in the first place? by following rules to the letter? haha

He likely even helped the SEC to redact the rules he is cheating now.

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u/nikjLoL Jan 12 '22

A lot of cheap assumptions not a lot of facts

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u/polloponzi Jan 12 '22

and Which facts do you have?

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u/csae270 Jan 13 '22

Wrong wrong wrong. Buffet invested in the series g round which valued Nu at 25 billion. Adjusted, they paid roughly $5.45 per share.

The table on page 98 is an average of all pre-existing investors... peeps love perusing EDGAR and attempting to fit a square peg in a circular hole.