Non FDIC Deposit Account Programs

[Montecfo]

From Wikipedia:


To be fair, Amerco was only in Chapter 11 reorganization for 9 months and U-Haul was not affected.

https://www.forbes.com/sites/luisak...ily-feud-to-market-dominance/?sh=3953c7783bb5

The lender in the note program under discussion is Amerco, not U-Haul.

 

[Montecfo]

+1


I'm sure we could make a list of dozens or hundreds of big companies that have been through a bankruptcy at some time in their past and are still going strong. A company that came out of bankruptcy 18 years ago wouldn't be a cause for concern to me. I'd be focused on their current financial standing.

The problem is this is a family owned and managed business and there has been quite a bit of self-dealing type activity in the past, including the transactions that led to the bankruptcy. It would have been difficult to anticipate even if you read their financials in detail.

And I doubt that is what most investors do.

While I think the notes are somewhat interesting, I do not find the track record inspires confidence.

 

[Montecfo]

Yup, and they were in Chapter 11 a whole 9 months. I don't know for sure but I'd bet that no U-Haul note program lenders saw a disruption in payments.

I do not know now either and it would require a lot of digging to find the answer.

I would not have any basis for speculating one way or the other.

It is certainly not an answer worth speculating on in my view, particularly with respect to an investment that is illiquid.

The lack of liquidity, unique to U-Haul in this discussion, along with the family management/control (ditto) makes this a non-starter for me for low-risk type money.

I also do not find it comparable risk-wise to the other alternatives discussed in this thread, all of which have the advantage of liquidity.

Other minds may differ, but making the case they are comparable would be quite a feat in my view.

 

[pb4uski]

I don't think anyone made a claim that they were comparable.

 

[pb4uski]

.... I also do not find it comparable risk-wise to the other alternatives discussed in this thread, all of which have the advantage of liquidity.

Other minds may differ, but making the case they are comparable would be quite a feat in my view.

I don't think anyone made a claim that AMERCO/U-Haul were comparable to Toyota Motor Credit Corp, GM or Dominion Energy.

We were responding to a post that you made that AMERCO's 2003 bankruptcy would give you pause.

 

[Montecfo]

I don't think anyone made a claim that AMERCO/U-Haul were comparable to Toyota Motor Credit Corp, GM or Dominion Energy.

We were responding to a post that you made that AMERCO's 2003 bankruptcy would give you pause.

Uhaul was in the initial post of the thread along with GM, Dominion, Toyota. It has been discussed extensively in this thread. I appreciate the comprehensiveness. But I think my point is clear.