Berkshire Hathaway Gets Its Own Monthly Income ETF — And It Says a Lot About Where the Options Market Is Headed

Warren Buffett's firm has 43% of its stock portfolio in 2 names. But...

Warren Buffett’s firm might have 43% of its stock portfolio in two companies. But there’s a lot more to Berkshire Hathaway (NYSE:BRK.B) than this. The firm also has insurance businesses, a railroad, an energy unit, and a lot of cash. And this makes it a highly diversified operation. Diversification Berkshire’s stock portfolio is worth $274bn. And 43% of this is Apple ($62bn) and American Express ($56bn). Ordinarily, a lack of diversificati…

Berkshire Hathaway Gets Its Own Monthly Income ETF — And It Says a Lot About Where the Options Market Is Headed

A new exchange-traded fund wants to pay you monthly income for holding what is essentially a bet on Warren Buffett’s conglomerate. The fund is called OMAH, and it launched this week with a premise that would have seemed absurd a decade ago: wrap Berkshire Hathaway Class B shares in a covered-call options strategy and distribute the premium as monthly cash to shareholders. The fund is the brainchild of YieldMax, the ETF issuer that has turned sin…