Post #8341 by rayvt on the Berkshire Hathaway board

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

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"I've been running my BRK at leverage = 2 with DITM LEAPs. Is it time to go back to stock and sell covered calls every week?"

Well, there are lots of moving pieces...
But if that leverage was something put on at a time that valuations were unusually good as a way to profit maximally from the upswing, then this is decidedly not such a time, so I guess taking the leverage off makes sense.

Ken Fisher likes to call the market "The Great Humiliator -- its aim is to humiliate as many people as it can for as long as it can for as many dollars as it can."

Too true!

I closed out my BRK leaps earlier this year, when the P/B got to 1.6. At 383.

I recently sold a 425 covered call after BRK went up big several days in a row. "Surely it is being over-bought and will fall back."

BRK-B is currently 438. Blew right past the CC breakeven point.

Me: Humiliated both ways.
Market: Success!!

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