Post #74 by maxthetrade on the Berkshire Hathaway board

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

Unthreaded | Threaded | Whole Thread (17)

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

No. of Recommendations: 1

I intend to (and already did) copy Jim a little who once said his CAGR with BRK since around 2000 is 24.x% (that's how I remember it: probably not too far off) by using leverage: Buying calls when PeakPB/Price is low, puts when it's high, based on his observation that the typical range is 1.2-1.55 (just once in 20 years much lower than 1.2).

I've done very well buying and selling options on Berkshire, not as well as Jim but still very well. One thing I worry about with an options strategy is what happens when Buffett leaves the building for the last time. I think it's possible that the stock price (not IV!) stays subdued for an extended period of time which might make options less attractive for a couple of years, especially with a higher implied interest rate. So far I haven't changed my strategy at all but I'm thinking about being somewhat less agressive to be able to roll calls multiple times.

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

Print the post

Unthreaded | Threaded | Whole Thread (17)

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.