Good article, sell puts on what you woulike to own
Options -- The Striking Price: What Greg Abel Should Do With All That Cash -- Barron's
As Warren Buffett's successor as CEO of Berkshire Hathaway, Abel has inherited about $382 billion, give or take a few billion, in cash.It has been oft noted by commentators who excel at statements of the obvious that Berkshire has enough cash to buy many of the world's most-admired companies. What is rarely noted, however, is that many of these stocks are trading near record highs.Berkshire's portfolio includes Alphabet, Apple, Bank of America, Chevron, Coca-Cola, Visa, and many others.Consider Chevron, a company that is much in the news following America's ouster of Venezuela's president. Chevron is often identified as well positioned to benefit from Venezuela's oil fields.Abel could enhance Berkshire's Chevron investment by selling puts with strike prices below Chevron's stock price. He just needs to pick the price at which he would be willing to buy more stock. If the stock is above the put strike at expiration, Abel keeps the cash, which almost certainly rivals Chevron's quarterly
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