Post #6833 by Said on the Berkshire Hathaway board

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

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I’m a bit surprised at the amount of leverage others are using.

You probably mean me, as I wrote that I just sold Hershey $195 Jan'25 calls = far out the money. The explanation is easy: That's gambling, not rational investing. No problem, as I am fully aware of that. The outcome is not exactly great:
- 2022 my "casino/options portfolio" (was then on average 8% of my total portfolio) returned 19%
- 2023 (was then 5% of my portfolio) it returned just 3%
So double the 10% the S&P gained over those 2 years --- but absolutely not worth it if taking into account the immensily(!) higher risk I took with always deep out of the money options. The real reward was the fun I had.

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