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11 sats \ 4 replies \ @bitcoingraffiti 22h \ on: Profiles of STRK, STRF and STRD Stacker_Stocks
The retail investor should just buy $MSTR.
Those prefs and converts only work by the grace of Bitcoin going up more, i.e. making the common stock go up (and outperforming the derivatives).
Those prefs are mostly for institutions with a mandate, and you're gonna lose relative to $MSTR.
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21 sats \ 0 replies \ @Bell_curve OP 1h
I agree with your comment
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0 sats \ 2 replies \ @Bell_curve OP 18h
good warning
retail buyer beware
FYI: I bought all three as an experiment because I don't know what I'm doing or what I am talking about
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0 sats \ 1 reply \ @bitcoingraffiti 18h
Ok, it's a good experiment. But prefs should underperform the common stock. (maybe not if bought under par) Otherwise Saylor's scheme wouldn't work, and there wouldn't be value creation, i.e. the bitcoin yield would be negative.
In his view the creditor is the sucker, and Bitcoin/common stock the superior asset.
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0 sats \ 0 replies \ @Bell_curve OP 14h
The preferred stocks act like bonds and are targeted for bond investors.
Insurance companies can't buy bitcoin or ETFs but they can justify a dividend producing preferred stock
That's one example
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