Options Corner: Is It Time to Buy Berkshire at a Discount?

Berkshire Hathaway Inc. Class A +0.85% Pre
American Express Company -0.61% Pre
Apple Inc. +0.09% Pre
Bank of America Corporation +1.06% Pre
Coca-Cola Company +2.04% Pre

Berkshire Hathaway Inc. Class A

BRK.A

748886.97

748886.97

+0.85%

0.00% Pre

American Express Company

AXP

382.56

382.56

-0.61%

0.00% Pre

Apple Inc.

AAPL

278.28

278.99

+0.09%

+0.26% Pre

Bank of America Corporation

BAC

55.14

55.40

+1.06%

+0.47% Pre

Coca-Cola Company

KO

70.52

70.59

+2.04%

+0.10% Pre

Hey everyone,

Let's chat about Berkshire Hathaway Inc. Class A(BRK.A.US) / Berkshire Hathaway Inc. Class B(BRK.B.US)'s recent stock performance. 📉 Back on May 2nd, Berkshire Hathaway Inc. Class A(BRK.A.US) shares hit an all-time high of $812,900. Fast-forward to August 14th, and we're looking at $715,400 per share. That's nearly a 15% drop in just over three months.

So, what's going on? 🤔 Some analysts think the dip reflects worries about the "Buffett premium" fading. Investors are concerned about Berkshire's future without the legendary Warren Buffett at the helm.

Another factor in the mix is their latest quarterly earnings. 📊 In Q2 2025, Berkshire reported total revenue of $92.515 billion, down 1.2% from $93.653 billion in the same period last year. Net income took a big hit, dropping 59% to $12.37 billion.

But let's not forget the powerhouse that is Berkshire Hathaway. 💪 Buffett has built a diverse empire that's still incredibly appealing. Their top five holdings are a who's who of industry leaders:

These companies have strong moats, generate free cash flow, and have proven business models.

Beyond investments, Berkshire owns a slew of businesses, including Geico, General Re, BNSF Railway, and significant energy interests. 🚂 From food and beverages to construction materials, Buffett and Charlie Munger have consistently acquired companies with outstanding qualities and management teams.

Beyond investments, Berkshire owns a slew of businesses, including Geico, General Re, BNSF Railway, and significant energy interests. 🚂 From food and beverages to construction materials, Buffett and Charlie Munger have consistently acquired companies with outstanding qualities and management teams.

Now, for options enthusiasts, selling puts might be a smart move. 💼 For example, selling a Berkshire Hathaway Inc. Class B(BRK.B.US) 290825 put at $480 (BRKB 290825 P 480) could be appealing. The breakeven point is $473.725.

Here's the deal: If BRKB is above $480 on August 29th, you pocket $627.50 in premium. 💰 If it's below, you'll buy 100 shares of BRKB, but with that premium, it's like getting a discount. 📉

The catch? The margin requirement is high, so this strategy suits more conservative investors. ⚖️

Remember, options carry risks, so make sure to evaluate carefully before diving in. 🚨

Stay savvy, folks! 🌟

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