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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
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Number: of 22354 
Subject: Re: Puts
Date: 02/28/24 3:03 PM
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No. of Recommendations: 6
I prefer writing calls to buying puts. (assuming a bit out of the money in both cases).
If the stock prices is exactly flat, when writing calls you keep all the money involved and buying puts you lose all the money involved.

In fact, I've been thinking about writing puts.

I have cash, earning modest interest. I would be a buyer of Berkshire at a valuation level more attractive than today's.
I could write puts at around that level. The two outcomes are that I get to keep the premiums (enhancing my "interest" yield), or I get Berkshire at a good valuation level at which I'd be a buyer anyway.
I'm not doing that right now because the premiums will be much better wen the gap between market price and "usual" valuation is a narrower, which I imagine will happen sooner or later.

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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