Over the last few weeks, I have trimmed my position in Berkshire Hathaway to lock in profits. Berkshire has moved up significantly, very quickly. I believe the stock is benefiting from a flight to safety as the market has become more volatile, with a strong downward trend. All that remains of my Berkshire position are the shares that cover the long dated calls I sold in February. The rest of the portfolio is in cash, a bond fund, and some J M Smucker Co. shares for my SJM Covered Calls Game.
I will lose no sleep on my remaining position in Berkshire. I already have booked substantial call premiums, and the stock has gone up more since then, so I have plenty of downside protection. Moreover, come what may, Berkshire Hathaway, the company, shall persevere.
With Love,
P. Gustav Mueller, author of The Present