A better strategy is to buy puts. It’s like an insurance policy. If stock goes down,you can exercise or sell the put. If stock doesn’t go down, your unrealized capital gain keep compounding. Not tax consequences unless your puts are profitable. If you sell calls, you could face a large tax bill, and it will end up cheaper for you to buy back the call or buy more stocks at the higher price.

Selling calls is ultimately a bet on the gammas/curvature of the Brk price movement. You expect brk would go up slowly, usually after a big jump. But there could be a regime change here. First, small caps value start outperforming large cap growth again— it’s because people are selling large caps growth. Second, Brk is now one of the top 8 companies in US. Its weight in the index will attract more inflows. There’s a lot of foreign money investing in the US stocks. Think about Chinese millionaires who are leaving China, they would buying real estate and safe value stocks.

Berkshire Hathaway FAQ

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