I took some leverage off today closing all of my Jan24 option contracts. I flipped to shares in all of my tax free accounts. Holding cash in my taxable account. Dollars at risk only down 5-10%.

Trailing p/b is near recent highs. Looking forward to expected Q2 p/b we are likely in or close to upper quartile levels. Squinting into Q3 we are likely well above median currently even then.

I don't expect good things from BNSF for Q2. Transportation in the US is currently way off. Yellow Corp is heading to bankruptcy as an example. Some highlights of the challenges for freight industry in the marketplace article here too.
https://www.marketplace.org/2023/08/01/in-the-frei...


I haven't had a chance to read through the apple report today but the market didn't like it apparently. I have been expecting their net income to be flat to down this year anyway. I think growth in the equity portfolio at brk will be challenged for a bit.

I think there will be better opportunities to put leverage back on. The market will likely prove me wrong :)

Jeff

Berkshire Hathaway FAQ

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