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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: carolsharp   😊 😞
Number: of 21938 
Subject: Long-dated calls
Date: 03/18/26 11:04 AM
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I'd like to sell some Berkshire shares for $600 between now (2026) and EOY 2028.

I noticed when the share price is ~$500 (currently $490) the December 15 2028 $500 calls are ~$100. So, you're committing to sell shares on that date for $600. In the meantime, you collect $10,000 per contract, which would earn some interest between now and then.

Here's a back-of-the-napkin share price projection (thanks to Jim):

Berkshire 3Q 2025 book value was $323.62.
Project 3Q 2028 book value to be $396.45 based on 7% growth (323.62 x 1.07^3).
Apply a P/B of 1.43 to get a share price of $566.92 (396.45 x 1.43).
Apply an inflation rate of 2.75% to get a nominal price of $614.99 (566.92 x 1.0275^3).

So, when Berkshire releases 3Q 2028 results in November 2028, about a month before the calls expire, the share price might be $615. That's in the ballpark to selling December 15 2028 $500 calls for $100.

However, I probably won't sell these calls because it just feels too far out.
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This community has written 21,448 posts about Berkshire Hathaway. The article-length ones it recommended most:
BRK: Why Not XOM? · 62 recs · 2024
Second quarter comments · 60 recs · 2023
Berkshire's Profit Contributors · 57 recs · 2023
Summary of 2Q 2026 · 54 recs · 2026
3Q Summary · 53 recs · 2024
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