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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: mungofitch 🐝🐝🐝 GOLD
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Number: of 21941 
Subject: Re: A/B ratio/ Buybacks/ Put Sell?
Date: 08/04/25 10:54 AM
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What do folks think about selling the 450 puts here, even for a month, seems like their offering value.

If you're going to do that, I recommend going out more months. The premium is simply bigger, meaning a bigger discount for any given strike price you pick. Also a more meaningful amount of return if they expire worthless rather than relative chump change.

Around year end book will probably be somewhere around $322 at a guess. (or near that, on trend, which probably matters more).
Random example, sell January $440 put for about $12, entry price about $428, which might be around 1.33 times book at the time of expiry. Hard to imagine that being a bad outcome.
Or you get 2.79% on the capital you tie up, which is a return of 6.2%/year rate on top of whatever you're already earning on the cash. IB is paying 3.83% at the moment, so if that holds it's a rate of 10.01%/year.

Tune the numbers to get two outcomes which you consider equally attractive. Because, sure as shootin', you'll get whichever one looks worse at the time : )

Jim
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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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