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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 15058 
Subject: Re: DG on sale today
Date: 08/17/2023 4:08 PM
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No. of Recommendations: 5
Current price $160.95. I just bought a bit more.
...
Puts look juicy as well.


I tend to go for put writing when I like the stock, but it's not QUITE cheap enough to make me jump. ATD.TO might count on that front for me, as an example.
But I don't find that problem for DG at this juncture...upside looks very solid to me.
I bought some Jan 2026 calls. The implied interest rates are unpalatable at something like 6.4%/year, but hey, life needs entertainment.

Here's a really really bad way to invest: the shares of growing firms will hit fresh all time high prices from time to time. After a bubble it will be a very long wait, but otherwise a more moderate time frame.
How well would you do on a stock if that happened within N years, for various values of N?
For DG, a return to the all time high from last year would get you a nominal 17.7%/year return if it took 3 more years to be revisited, and 8.5%/year if it took 6 more years.

Jim
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