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The week's question
In March 2025, in the thread "Re: OT, out", Umm asked the members: "Do you think it is because America is made up of magical soil that makes businesses based in America magically profitable?" 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 ✹✺🐝 SILVER
SHREWD
  😊 😞

Number: of 22353 
Subject: Re: out of the gate strong
Date: 01/25/24 1:23 PM
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No. of Recommendations: 13
This is my first sale out of our long term holdings of Brk B Shares.
Congratulations!

Our average cost base is $81.68.
Even more congratulations!


"A guy's gotta eat!" or something like that.
Sounds like you'll eat well.

I too eat from my portfolio. But, per my personality, I always overcomplicate things.
I just sold some June $385 call options for $14.56.
There are two possible outcomes:

(a) The stock price rises a lot, the option gets exercised, and I end up having sold some stock at the net benefit of $399.56 per B share. ($385 that the option buyer pays me, and the $14.56 I already collected). Though the stock could push higher for a while and I might miss an opportunity to do even better, I'm confident that even by June that will be a pretty good exit price, so I'm happy with that.

(b) Or I get to keep the $14.56. That's a "bonus" 9.5%/year rate of return on my stock, and it's cash I can then spend: a bit like an occasional dividend. This makes senses only when the stock valuation is getting decently high, so it's a rare treat.

Jim
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This community has written 21,861 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 · 58 recs · 2023
Summary of 2Q 2026 · 55 recs · 2026
3Q Summary · 53 recs · 2024
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