Subject: Re: A strategy I read about
As many know, I make my living primarily by buying long dated deep in the money calls against Berkshire Hathaway. Both the underlying security and the method of leverage were picked using the rules of thumb above. The business is easy to value, and pretty predictable in its value trajectory, and cheap enough often enough that wanting to use leverage makes sense. (not today however--not cheap).

Jim, would you care to remind us of your cheapness criterion for BRK, and where the threshold stands today?

Elan