At some point every investor needs to park money for a year in a safe short-term investment where return of principal is as important as return on principal. The best 1-year CD rates have crept up to 2.25%-2.30% due to the flattening yield curve, a slight discount to the recent 1-year T-Bill rate of 2.33% as of June 28, 2018. But what if we could get another 141.9 bps or 3.694% almost as risk-free? That’s a 136.4 bps or 58.5% premium to the 1-year T-Bill – and who would be one of your fellow investors in this company but Berkshire Hathaway (NYSE: BRK.A) (NYSE:BRK.B)!
SOURCE: cnbc.com
If you need to park money for a year, I suggest you buy the Senior Unsecured 1.700% Bond due July 19, 2019 of Teva Pharmaceutical Industries, Ltd. (NYSE: TEVA). The bond sells at 97.985, a discount to par for a YTM of 3.694%.
