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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: Bluehorseshoe   😊 😞
Number: of 15052 
Subject: Re: Calls: end of an era?
Date: 10/26/2023 12:17 PM
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I was looking at the implied interest rates built into the prices of various Berkshire calls.
They are all high enough now that it's no longer obvious that it's a good investment strategy.


I have been looking at them too and struggling with the returns not being attractive. MAYBE if we see multiples closer to 1.2x one can squint hard enough to see a mid teens real return. Whether that's attractive enough based on risk is up to each individual.


Jeff
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