I am curious if anyone here on this Harley forum has any news of what or why Warren Buffett bought all that financial paper from Harley.
I've read the headlines and articles I can find but I'm not sure I understand the real long term reasons for it. Any light you can shed on this is appreciated.
__________________ Buzz Kanter
Editor-in-Chief, American Iron Magazine
Well he is not buying stock, he is buying debt, and getting fifteen percent interest.
Wish I could get that kind of return.
I heard him say once that he only invested in companies that he understood, and that were sound.
Doesn’t he ride a Harley?
Well he is not buying stock, he is buying debt, and getting fifteen percent interest.
Wish I could get that kind of return.
I heard him say once that he only invested in companies that he understood, and that were sound.
Doesn’t he ride a Harley?
Investing is one thing, but at 15% that's pretty much like loansharking. Who would buy a bike financed at 30%? Isn't that what HD Finance is going to have to do to break even on that loan?
__________________ V-Rod Editor For American Iron Magazine
what he did was buy the paper as a long term strategy. Frees up money so Harley can loan more - nothing unusual here. I am sure it is backed by the MOCO in some manner - it is a no loss for him....
__________________ FREEDOM is NEVER FREE - GOD BLESS THE U.S.A.
2007 Ultra Classic
Nothing sucks more than that moment during an argument when you realize you're wrong.
what he did was buy the paper as a long term strategy. Frees up money so Harley can loan more - nothing unusual here. I am sure it is backed by the MOCO in some manner - it is a no loss for him....
It was backed by 15% interest. They offered Buffet HD stock to back the loan, and he declined. We can speculate WHY he declined, but my concern is that he doesn't have any faith in the stock so he required 15% interest.
__________________ V-Rod Editor For American Iron Magazine
Warren Buffet IS about making money.
He knows Harleys gonna be a good bet on his money, and he will make money.
He owns no stock, just getting interest right from the gitgo.... just like a home loan, he gets all interest up front....pure profit.......
Investing is one thing, but at 15% that's pretty much like loansharking. Who would buy a bike financed at 30%? Isn't that what HD Finance is going to have to do to break even on that loan?
Doesn't work like that, actually commercial loans are quite steep anyway, the fact that they went "on the street" tells me either they couldn't get a loan, which I doubt or the interest was higher yet!
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