 Here's how you can generate over $200 safely in less than 2 minutes, and having the greatest investor, Warren Buffett to work for you. If you want to find out how you can do it step by step, then make sure to watch this business deep dive all the way to the end. Hi, I'm Yasmine, this is Chloe and welcome back. My channel is all about sharing my investment journey and little insights to help you to become a better investor. So if it's the first time of you coming, remember to hit the subscribe button as well as the notification bell so that you will not miss out any of my future updates. An early thumbs up is also appreciated because it means a lot to me and that really motivates me to keep on doing what I'm doing. So thank you in advance. Just recently, Warren Buffett had his annual general shareholder meeting and it was really a privilege for me to be able to fire word to the US to sit in the same room as Warren Buffett and Charlie Munger and learn from them directly. Berkshire AGM is also a place where the top investors all over the world gather and it was really great to learn directly from great investors like Monash Prabai, Lauren Templeton and William Green. And from this AGM, I got to understand Berkshire Hathaway a lot more, not just from its business aspects, but also its culture and the integrity of the management team. So after attending the AGM, guess what stock did I add even more to my portfolio? Obviously, it's Berkshire Hathaway. Disclaimer, I'm already investing in Berkshire Hathaway but right after the AGM, it just strengthened my conviction into this company even more. And one of the great ways to accumulate more shares is actually through the power of options because using BOSS option strategy, you will get paid in advance for promising to buy shares that you want. And that's how I managed to generate more than $200 in less than 2 minutes while promising to buy more Berkshire Hathaway shares. If you find it a little bit confusing right now, don't worry, I'm going to break down for you step by step. But in case you think that Berkshire Hathaway is just another investment holding company, I am going to debunk this myth for you because the investment arm is just one part of the business. Berkshire Hathaway is way larger than that and that's what makes Berkshire Hathaway super strong. It's a conglomerate holding company that owns insurance companies, railroads, energy and utilities to even candy making. It has a super diversified business portfolio that can weather through different economic conditions. So in this video, before I share with you the option strategy, I'm going to break down the business models of Berkshire Hathaway for you so that you can decide for yourself whether it's a business that you want to consider investing as well. Let's go! Here's the latest annual report of Berkshire Hathaway and from the first glance, 2022 seems to be a very bad year with the company losing more than $20 billion. But is the company really that bad? Now let's take a look at the first business segment, Insurance. Berkshire owns a few insurance companies from auto insurance companies like GEICO to reinsurance firms like GENERAL REE. It made the net loss of $90 million from its underwriting, which means that the company is losing money from selling insurance policies as they pay out more claims than the premiums that they receive. You might be thinking there are so many risks that it's unpredictable by running insurance companies. For example, natural disasters, accidents, cancer, diseases, why wouldn't Buffett want to own insurance companies? Well that's because by owning insurance companies, Buffett is able to tap into the power of float. If you are wondering what's float, the concept is very simple. Think about you buying an insurance policy. Do you pay now or do you pay later? The answer is obviously now. But the insurance company will only need to pay you later on when you indeed touch or encounter any accident or have any form of diseases. So these collect now pay later business models, give insurance companies a golden window of time to hold large sums of money, which we call float. And if they know how to invest this float well, that's how they are able to make more money. In fact, the insurance arm has been a key propelling engine for Berkshire's success since 1967. The amount of float that Berkshire owns just grows tremendously over the years, from initially $39 million to $164 billion. And this gives Buffett a tremendous pool of cash for him to invest to grow even further. Now although Berkshire suffered a small underwriting loss last year, the company still has an excellent underwriting record. For the entire 20 years back, Berkshire has 18 years of underwriting profits. The underwriting insurance side of business made Berkshire close to $29 billion, which technically means the company got paid $29 billion for using the float for free and make more investment income from there. Oh my god! This track record is definitely not an accident, because just like what Buffett said, discipline risk evaluation is the daily focus of our insurance managers. All insurers give that message to lip service at Berkshire. It is a religion, Old Testament style. Apart from insurance company, Berkshire also owns Railroad Company BNSF, one of the largest railroad systems in North America. It also has several utilities and energy companies serving more than 5 million customers and 5 interstate US natural gas pipeline. Not to forget that Berkshire also has manufacturing business, producing a wide range of products from specialty chemicals to owning a basket of retail businesses like Seas Candies. Mmm, so yummy! All these businesses are making very consistent cash flow for Berkshire Halfway so that Warren Buffett and Charlie Gammonger can invest even more. Now here comes the most well-known side of business, Berkshire's investment. They made a grand total of $53 billion in losses last year. Now, before you think that Warren Buffett has lost his age as an investor, you need to understand the context of how the gains or losses are calculated. Firstly, the stock price fluctuates every single day and every single year. So last year when the market had a huge decline, Berkshire portfolio was also affected. So on paper, Berkshire was losing about $53 billion. However, these investment losses are unrealised. In other words, Berkshire did not sell away the stock at the lower price but it simply had to book in the loss on paper according to accounting standard. Just like we can never judge a book by its cover, we should never judge a company by one year's performance. In fact, Warren Buffett said we believe the investment gains and losses, whether realised from the sales or unrealised from changes in market prices, are often meaningless in terms of understanding our reported consolidated earnings or evaluating our periodic economic performance. So instead of looking at short-term one-year loss again, we should be looking at the business' long-term performance. And if you look at Berkshire since 1965, it has generated 19.8% annualised return as compared to the broad market 9.9% return. That means if you have invested $1,000 back then in Berkshire Hathaway in 1965, your $1,000 will have now become $24 million and that is the compounding magic brought by investing in a great business over a long period of time. In fact, I had a privilege to talk to a few investors from the recent Berkshire AGM and some of them have been holding onto Berkshire stocks since more than 20 over years. Back then, Berkshire Class A share was only $30,000 and today, it's already close to $500,000. By the way, I share the most important lesson if you want to know my greatest key takeaway from Warren Buffett and Charlie Munger, then make sure to check out the video over here. So now that you know Berkshire is a very diversified company run by capable management team, now the next question is, when is a good time to buy? If you look into annual report, you can actually find out the exact price that the company used to repurchase its stocks last year, which is $303.83. So what does that mean? It shows that Warren Buffett thinks that the company is undervalued at about $303, and that's why they initiated company share by back. So the key is, how can we use options to take advantage of this? Now, if you look at Berkshire's stock price today, this is way higher than $303. So normal investors out there generally have to wait for the stock price to fall before they can buy any shares. However, if you are an options investor and if you know how to use B-O-S-S option strategy, you can actually use this waiting period to generate additional income. One ID was actually selling a good option on Berkshire Hathaway for 1 month and promising to buy Berkshire at $305. In return, I pocketed about $160 US which is equivalent to about $206 in less than 2 minutes. So at the end of the 1 month, if the stock price remains to be above $305, I will not be able to buy Berkshire at the price I want. However, I already pocketed $160 US as a premium in the first place which means it's free money for me. Scenario number 2, at the end of the 1 month, Berkshire Hathaway stock price continues to fall to below $305. Now, I will get to buy 100 shares of Berkshire at $305 which is the exact price that I wanted in the first place. So regardless scenario 1 or 2, it's a win-win situation for me. So using the same concept, you can also execute B-O-S-S option strategy on Berkshire Hathaway with your portfolio. However, if you are very new to options, my advice for you is to get yourself educated first so that you will know what option strategy is suitable for different market conditions. If you are keen to learn, then do join us in our upcoming free 2-hour options masterclass to get started step by step. All you need to do is to click on the link around this video and register for your free spot. In the meantime, feel free to join my Telegram channel to get more updated investment insight. And if you find this video helpful, remember to give it a thumbs up and share it to your friends to inspire them to get started their investment journey. With that, happy investing and I will see you in the next video. Arigato!