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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 22352 
Subject: Re: For call option holders
Date: 01/05/26 3:15 PM
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No. of Recommendations: 11
If this is not a good time to buy, then why roll? Why not sell the existing positions and wait for a fat pitch?

Two different investment philosophies. One view presupposes you have an idea about what valuation levels or prices might do in a reasonable time frame. Prices seem relatively high so a better entry might come along--I've been imagining one for a while--but then again it might not.

Conversely, simply rolling calls over and over is agnostic about upcoming prices, figuring merely that the value growth rate over time will be higher than the implied interest rate in the leverage of the currently available calls.

I've followed both approaches and both work, but simply rolling the calls is closer to the "just hold the damned stock" approach. Not close, but closer.

Whichever approach one uses, sometimes you have to roll. I just wanted to point out that this seems like a better than average moment to do so. It's very expensive during a panic when prices are low.

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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