Implied interest rate for LEAP options

[ajacobson]

Buffet's number one holding currently is cash. So on a macro basis I'm unsure if he has any overall leverage.

 

[ironchef]

Buffet's number one holding currently is cash. So on a macro basis I'm unsure if he has any overall leverage.

Good point, his float is ~$100B and his cash is about equal.

 

[JackRab]

Why may I ask? Buffett leverages using insurance floats to get his returns, so why not us mom and pop retail using options?

It's one thing to use options... but not in the way OP is proposing IMO. Buying a call is a leveraged kinda way to buy upside. But a synthetic long is just something like 80% financed stock... longterm, if your timing is off... that's a ticket to ruin. Even Berkshire stocks can go down a decent amount, since it's fully invested in stocks... so anything but safe.