A private investors approach to currency “hedge”, and a way to invest abroad!!

@dylanford15's post on his "2024 Letter: Further Analysis" was very interesting!

I found "The basic setup of Yen-Hedging" to be a very interesting part.
Currency exposure and currency hedging are something that normally keeps investors in their home country's market, even though they want to invest abroad!

I did a little research, and private investors could do something similar:

Borrow in yen and buy yen assets:

If you want a “hedge” approach, to have yen assets on one side, yen debt on the other.

As a private investor, you can do it using a broker that supports "multi-currency margin", so you can end up with a "negative JPY cash balance" and pay JPY interest. Interactive Brokers, for example, publishes JPY margin borrowing rates by tier.

Things to be aware of:
- Retail borrowing is usually floating rate, can change quickly, and is commonly higher than Berkshire’s sub-1 percent bond funding.
- This approach can trigger margin calls if the position moves against you.

And thank you @dylanford15 for a great post!