hi ,

I found it from the personal finance blog showing ambank have such ETF http://www.ambg.com.my/berkshirezerostrike/index.asp . Well , I m curious Rm100 after exchange with 3.6USD and place for invest ?? or it follow the warrent buffett portfolio and build the same using klse stock?

thank for advice.

At maturity, the payout of a Zero Strike exactly matches the final price of the reference stock, after adjusting for Currency and the Exercise Ratio.

Instrument : Zero strike call warrants
Underlying : Berkshire Hathaway Inc. Class B ordinay shares
Maturity : 5 years from issue date
Issue Price : RM 1 per warrant
Guarantor : Ambank Bhd
Settlement : Cash Settled
Listing : Listed and traded on Bursa Malaysia

OFFER PERIOD – 12 March 2009 to 10 April 2009

This post has been edited by Colaboy: Mar 24 2009, 08:15 PM

hey mind to share more? what is the min entry price? we need to hold for 5 yrs then?
if u r saying like this, it means that it follows exactly what warren buffet buys but entry and exit time play important roles on investment.
kindly advise.

It is tradable in the market, so you don't need to hold until it matured if you wish to sell.

It is a warrant, it is not an ETF, nor you are holding the real stocks.

yes . . . what cherroy mention is true

Just some additional info


Zero Strike : If share up 5% than zero strike also up 5%
: If share down 5% than zero strike also down 5%
Normal Warrant : If share up 5% than warrant up 25% (leverage at 5 times)
: If share down 5% than warrant down 25% (leverage at 5 times)


Zero Strike : Longer dated, maturity up to 5 years
Normal Warrant : Warrant value decay over time, usually 6-18 months

what else ? ? ?
0% ENTRY FEES
0% MANAGEMENT FEE
0% EXIT FEE

but the risk here is the currency conversion?? at their website stated it need to open amsec CDS. This CDS is it exactly the same as other usage in stock market. This product is it a FUND which hold buffett class B warrant??

You misunderstood. It is not a fund to buy Berkshire share.

It is just a derivative to mimic Berkshire share. You will never get any Berkshire share, you are just tagging a long for the ride. To tag along you need to buy a warrant that is a multiple of the share it is following. So when the fella go up, you also go up and vice versa.

Your CDS will only show the warrant and nothing more. At the end of 5 years if you hold it all the way, any difference is settled in cash. During the 5 years, any movement in the Berkshire share, your warrant will move accordingly. You can sell whenever and buy whenever you want from the market.

All other fees and tax is the same as buying share.

how much per 1000 warrant shares/

Issue price will be RM1 per call warrant.

Conversion ratio and exchange rate not fixed yet, will depend on the BRK.b price and USD/MYR on price fixing date .

any different with real warrant ?? seem this things between real warrant and stock.

It is a call warrant.

Thinking of getting this. With 5 years of buffer, seems like a good long term holding unless WB dies suddenly.

Never really studied Berkshire other than their well known investments. I'm more worried about their new investments into financials, but not too sure if those are WB personal or is it his company's investment.

in other words, is this recommended?

There are some pitfalls that you may wish to know before going in.

All existing zero strike call warrants (zscw)listed in Bursa are thinly traded and difficult to exit.But the difference of this Berkshire and existing zero strike call warrants is in the price.Berkshire zscw is priced at RM1 but the others listed are much more pricey.This is due to the strategy of the warrant issuer to make the BRK.b zscw more affordable to the retail clients.I am not sure whether this BRK.b zscw will be actively traded or not.My suggestion is wait for it to be listed for a while to watch the liquidity.

Secondly,most of the existing zscws are trading below the intrincit value.meaning the zscw price is at a discount to the underlying ,I believe the same would also be applicable to BRK.b zscw.

It will be safer to watch the trading for a while rather than plunging in on the first few day of trading.Anyway if you are interested to get it at RM1 from the issuer,I will be able to assist.(personally I don't recommend though I am entitled to 1 % commission)

Hi, would you mind to explain what r the procedure and i can exist anytime during the 5 years tenure or it has to be held for 5 years strictly.

r u from Ambank? thanks

It will be listed and traded in the market which you can buy and sell.

But I suspect, it will be thinly traded which make it difficult to buy and sell.

As most traders in KLSE still are not that sophisicated and more punter like. No offence.

This 1 cannot convert to the B shares right?

yep, cash settle

Just to keep forumers updated on the latest regarding this ZSCW:

http://lklatmy.blogspot.com/

No recommendation given,please judge your own.

This post has been edited by lklatmy: Apr 18 2009, 09:47 PM

A very pathetic start today!!!!!