OMAH: Berkshire Hathaway, But With A 15% Distribution Yield

(11min)

Summary

  • OMAH offers Berkshire Hathaway-focused equity exposure with a 15% targeted annual distribution, achieved via an active options-writing strategy.
  • The fund appeals to income-seeking investors by providing monthly payouts, despite Berkshire itself not paying dividends.
  • The distribution target raises sustainability concerns for those wanting capital preservation, with regard to the possibility of NAV erosion over time.
  • This idea was discussed in more depth with members of my private investing community, CEF/ETF Income Laboratory. Learn More »

Fortune Magazine Hosts "The Most Powerful Women" Summit In Washington

Mark Wilson

Written by Nick Ackerman, co-produced by Stanford Chemist

It seems as though there is a new exchange-traded fund ("ETF") being launched daily these days, with the number pushing near 4000 in the U.S. alone.

ETFs are often more

At the CEF/ETF Income Laboratory, we manage closed-end fund (CEF) and exchange-traded fund (ETF) portfolios targeting safe and reliable ~8% yields to make income investing easy for you. Check out what our members have to say about our service.

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This article was written by

15.24K Followers

Nick Ackerman is a former financial advisor using his experience to provide coverage on closed-end funds and exchange-traded funds. Nick has previously held Series 7 and Series 66 licenses and has been investing personally for over 14 years.

He contributes to the investing group CEF/ETF Income Laboratory along with leader Stanford Chemist, and Juan de la Hoz and Dividend Seeker. They help members benefit from income and arbitrage strategies in CEFs and ETFs by providing expert-level research. The service includes: managed portfolios targeting safe 8%+ yields, actionable income and arbitrage recommendations, in-depth analysis of CEFs and ETFs, and a friendly community of over a thousand members looking for the best income ideas. These are geared towards both active and passive investors. The vast majority of their holdings are also monthly-payers, which is great for faster compounding as well as smoothing income streams. Learn More.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of MA, CVX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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