No. of Recommendations: 2
@carsdude,
Sorry to hear about your health issues and wish you all the best in getting treatment for them.
If you are worried about single stock/ management transition (more important than Warren->Greg is Ajit->new guy transition IMO), then option 1 is best. The federal cap gains taxes have been as low as ever have been in my life time, and you say that you live in a zero tax state. Moreover, I think the tax rates rate likely to go up in the future.
You could keep the proceeds in ST T-bills and slowly diversify over a period of time into a broader market index. The S&P is clearly overvalued IMO at these levels, so an equal weighted index like RSP may make more sense.
