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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: Said ✧  😊 😞
Number: of 22354 
Subject: Re: BRK covered Calls: Lesson (learned?)
Date: 01/11/25 2:06 AM
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You've closed for a realized loss of 19-8.15 = -$10.85, which is a drag--I'm sure it feels bad.
It does. But it's more than compensated for by the positive outcome of the largest bet I ever made. I posted on several occasions last year that I bought BRK puts. I started buying them too soon but as more BRK shoot up as more I "doubled up", bought more puts.

That worked out well. As the bet is now far smaller than at it's top (most of those puts are sold = less capital invested in the remaining ones) I just had a look at the result so far: All together there were 47 completed buy-sell transactions of BRK Puts since Feb'24 when I started to buy and sell them. BRK-B was at $410 then, so returned 8% since. Those 47 closed transactions added another 11% and therefore practically exactly made up for BRK-B's fall until now from it's top of $490.


I wrote shorter term ones, closer to the money, for much higher premiums. Each time they got old, I rolled them up and out for approximately zero net cash change.
How did you manage to do that? I could understand that in the first half of the year, with BRK constantly up and down. But since July most of the time BRK did rise only. There were very few longer stretches down you could use to buy back old calls without a loss.
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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
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Summary of 2Q 2026 · 55 recs · 2026
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