Author Topic: What are you buying today?  (Read 1095572 times)

globalfinancepartners

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Re: What are you buying today?
« Reply #3040 on: June 15, 2018, 05:09:39 AM »
Sure seems like a long time to tie up that capital in exchange for less than 10% maximum return.  I wouldn't be worried either that Berkshire will trade below 182 in a year and a half.  But there is a chance that the shares are materially higher by then and I would rather participate on the long side of a great business where I can completely defer my gains tax indefinitely.

Sometimes long dated calls on the long side are attractive, but I never sell long dated puts.  When Berkshire did it, they weren't required to post collateral.  You are.

I've been writing puts aggressively on Berkshire. My favorite is an $18 premium for $200 strike January 2020 put. Break even price $182...in 2020. Feel pretty good about that one


boilermaker75

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Re: What are you buying today?
« Reply #3041 on: June 15, 2018, 05:20:40 AM »
I'm pretty ignorant and don't trade options myself.

What if there is a health issue with Warren or Charlie around the time of expiration and the equity is way down?

Is this a problem or are you just trading these on a shorter time frame?

That issue for being shot puts is the same issue someone would have being long BRK stock.

globalfinancepartners

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Re: What are you buying today?
« Reply #3042 on: June 15, 2018, 05:30:05 AM »
Yeah, what Mike said..  But it really does beg the question - how much do you think this bag of cash is going to fall [in market price] if Warren dies tomorrow?  The company starts buying their own equity in size something like 12% below the current market price.  Retains all earnings, so every passing day there is more money in the bag.  There are other things that keep me up at night, being long or synthetic long Berkshire stock at 192.50 isn't one of them.

I'm pretty ignorant and don't trade options myself.

What if there is a health issue with Warren or Charlie around the time of expiration and the equity is way down?

Is this a problem or are you just trading these on a shorter time frame?

DooDiligence

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Re: What are you buying today?
« Reply #3043 on: June 15, 2018, 08:40:06 AM »
More Berkshire.

Up to a 10% allocation at cost.

Should just go all in but I'm a grazer.
Healthcare 40.8% - ABC BBH CVS DVA EW NVO // BRK.B - 14.7% // Media & Communication 12.7% - CHTR CMCSA DIS

Drinkers & Smokers 13.5% - ABEV MO // Auto's & Oil 13.8% - CLB GPC VDE // Tech & Comms 4.4% - AAPL SFTBY

%'s held @ MV 11/23/2018 minus $$$ 4 skool

ready 2 wait

https://twitter.com/tunawish

Jurgis

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Re: What are you buying today?
« Reply #3044 on: June 15, 2018, 09:29:53 AM »
But it really does beg the question - how much do you think this bag of cash is going to fall [in market price] if Warren dies tomorrow? 

I think you guys are overconfident. BRK has fallen 50% top to bottom 2 or 3 times in its history. It can happen again. And if Warren was dead, there's no guarantee it would recover from 50% drop. ::)
"Before you can be rich, you must be poor." - Nef Anyo
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Spekulatius

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Re: What are you buying today?
« Reply #3045 on: June 15, 2018, 09:52:22 AM »
One never knows, but 1.2x book ( which could be falling when things go badly) is not necessarily the floor. I did a small add at $190 in one account . My next buy would be around $180.
To be a realist, one has to believe in miracles.

gokou3

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Re: What are you buying today?
« Reply #3046 on: June 15, 2018, 10:02:38 AM »
More PVF.UN (Partners Value LP).  30%+ discount to NAV now.

DooDiligence

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Re: What are you buying today?
« Reply #3047 on: June 15, 2018, 12:50:17 PM »
But it really does beg the question - how much do you think this bag of cash is going to fall [in market price] if Warren dies tomorrow? 

I think you guys are overconfident. BRK has fallen 50% top to bottom 2 or 3 times in its history. It can happen again. And if Warren was dead, there's no guarantee it would recover from 50% drop. ::)

0.6x (+/-) book would be AWESOME!

I'd probably mortgage my home 4 that.
Healthcare 40.8% - ABC BBH CVS DVA EW NVO // BRK.B - 14.7% // Media & Communication 12.7% - CHTR CMCSA DIS

Drinkers & Smokers 13.5% - ABEV MO // Auto's & Oil 13.8% - CLB GPC VDE // Tech & Comms 4.4% - AAPL SFTBY

%'s held @ MV 11/23/2018 minus $$$ 4 skool

ready 2 wait

https://twitter.com/tunawish

Jurgis

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Re: What are you buying today?
« Reply #3048 on: June 15, 2018, 01:08:14 PM »
But it really does beg the question - how much do you think this bag of cash is going to fall [in market price] if Warren dies tomorrow? 

I think you guys are overconfident. BRK has fallen 50% top to bottom 2 or 3 times in its history. It can happen again. And if Warren was dead, there's no guarantee it would recover from 50% drop. ::)

0.6x (+/-) book would be AWESOME!

I'd probably mortgage my home 4 that.

You clearly forget that when stocks owned by BRK fall, book also falls.
"Before you can be rich, you must be poor." - Nef Anyo
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writser

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Re: What are you buying today?
« Reply #3049 on: June 15, 2018, 01:28:14 PM »
And if it trades there chances of getting a second mortgage are probably zero.
When you are dead, you do not know you are dead. It's only painful and difficult for others. The same applies when you are stupid.