Post #16105 by Mark on the Berkshire Hathaway board

Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤

Unthreaded | Threaded | Whole Thread (33)

Post New | Post Reply | Report Post | Recommend It!

No. of Recommendations: 1

I guess one advantage of buy-writes that's worth noting is that although you have to put out cash

It's a very big advantage when things go majorly south. When Buffett sold those puts on the S&P500 back 10 or 20 years ago, he mentioned that one of the reasons he did the trade that way is because HE (Berkshire) gets to hold the capital, and control the capital, for the duration. If things go really bad, let's say the counterparty goes BK, there is much less pain involved in getting hold of the capital in question.

Post New | Post Reply | Report Post | Recommend It!

Print the post

Unthreaded | Threaded | Whole Thread (33)

Prev | Next

Announcements

Berkshire Hathaway FAQ

Contact Shrewd'm
Contact the developer of these message boards.

A community forum supporting civilized, and highly helpful, self-educating investors that come together for Shrewdness and merry spirits. These message boards closely follow the look and feel of the old message boards at boards.fool.com prior to the boards redirected to discussion.fool.com. Shrewd'm is not affiliated with the comprehensive and excellent investment website, The Motley Fool (TMF), in any way. The Shrewd commmunity here has owed, and continues to owe, gratitude to The Motley Fool for nurturing a culture of jovial irreverence towards Wall St, and that tradition will continue here.