A little thank you to Warren Buffet

[Amnorix]

Originally Posted by Rain Man

Blammo. I sold out my initial $5,000 worth, left the profit in, and I now have $1,200 of free Heinz ketchup stock for two months of investment.

Why leave the $1,200 at risk chasing the last few pennies on the spread between the current price and the purchase price? If the deal tanks for any reason at all, your $1,200 is going to evaporate fast.

The only guys left in the game at this point should be the arbitrageurs. You're basically betting $1,200 to make, what? About a buck? Current stock price is $72.49 and Buffet's purchase price is $72.50 and you own like 80 shares if my math adds up.

If you have to pay separate transaction costs for each sale then you're really being silly.

IMHO, next time, take the money and run Lebowski.


EDIT: Sorry, don't mean to be Debbie Downer -- congrats! It's certainly a very sweet moment of victory.