" Don’t Fret About Warren Buffett. Berkshire Stock Is Still a Buy."

msn.com - Don t fret about warren buffett berkshire stock is still a buy

" Options-centric investors can sell puts to buy the stock at potentially lower prices.

The October $460 put, for instance, could be sold for $6.50, and the October $455 puts for $5.20. The put sales obligate sellers to buy shares at effective prices of $453.50 and $449.80, respectively. If the stock is above the put strikes at expiration, investors can keep the put premium and reset the strategy.

The October expiration anticipates investors may slowly come to their senses as the stock market nears a seasonally volatile period. October marks the stock market’s historical declines, and investors tend to become interested in quality investments around that time.

There is no major sense of doom percolating in the markets at the moment, but a little uncertainty—sparked by weak or strong economic data that affects hopes for interest rate cuts—could be a bearish spark.

In a volatile market, investors will remember that Berkshire is a stable, well-run business. The company also has some $350 billion in Treasuries that Buffett presumably could use to make another one of his famous distressed purchases at a time when others are panicking.

Our Berkshire stock recommendation is a vote of confidence in Charles de Gaulle’s observation that the cemeteries of the world are filled with indispensable men.

Email: editors@barrons.com