This morning I bought 5 more shares of Johnson & Johnson (JNJ) at an average cost of $149.18
Which brings us to 100 shares in the taxable portfolio with the intention to also start selling covered calls.
I’m not sure if there is a universal intelligence, but something out there might be trying to tell me something.
I’ve been listening to and taking notes for all of the Berkshire Hathaway annual meetings since 1994.
Today I started the 2022 annual meeting and Warren Buffett said something very relevant.
He said that investing in stocks should be treated the same as buying a farm.
You put out money today to get more money in the future.
But, you don’t expect to hear daily price quotations on your farm.
You also wouldn’t make bets on the future price with your neighbor via options such as puts and calls.
Your only concern would be with increased output of the farm year after year.
The same is true when we buy stocks as investments.
We’re owning a business, just like you would own a farm or an apartment complex.
True dat, Warren.
So, more thought will be required on how I want to approach selling calls so that there’s an extremely low probability of having the shares “called away.”
Thought you might like a reminder about investing in businesses and not gambling with “stocks”.
Thanks for reading, and be sure to stay tuned for the Sunday portfolio update edition.
~Russ Knopf
