Investor Buys Berkshire Hathaway Put Options Amid 59.24% Earnings Drop

Recently, a prominent investor has made a significant move by purchasing put options for Berkshire Hathaway, the company led by renowned investor Warren Buffett. This investor, known for their value investing approach, has expressed optimism about the current valuation of Berkshire Hathaway's stock, which has seen a notable decline from its peak in May. The investor believes that the current price point offers good value and is hopeful about the long-term prospects of the investment.

The investor's decision comes amidst a backdrop of Berkshire Hathaway's recent financial performance. The company's second-quarter net profit for 2025 was reported at 123.7 billion dollars, marking a significant 59.24% decrease compared to the same period last year. Despite this decline, the investor remains confident in the company's fundamentals and sees the current stock price as an attractive entry point.

This investor has a long-standing relationship with Buffett, having previously attended a charity lunch with him in 2006. The investor has often cited Buffett's investment philosophy and approach to evaluating companies as influential in their own investment decisions. In a recent interaction, the investor emphasized the importance of understanding the business and its products, stating that quick decisions are not typical even among seasoned investors like Buffett and Charlie Munger.

The investor's strategy involves focusing on a select few companies that they have a deep understanding of, rather than chasing short-term opportunities. This approach aligns with Buffett's value investing principles, which prioritize long-term growth and stability over short-term gains. The investor has also previously followed Buffett's lead in investing in Western Petroleum, although they acknowledged not having a comprehensive understanding of the company.

In addition to their investment in Berkshire Hathaway, the investor has also expressed a cautious outlook on the broader U.S. stock market. They noted that while there has been significant cash outflow from certain U.S. stock ETFs, the overall market remains expensive. The investor's approach to investing in the U.S. market involves maintaining a balanced portfolio and being selective about individual investments.

This investor's move to purchase put options for Berkshire Hathaway highlights their confidence in the company's long-term prospects, despite recent financial setbacks. Their value investing approach and deep understanding of the companies they invest in have been key factors in their investment decisions. As the market continues to evolve, this investor's strategy of focusing on a select few companies and maintaining a long-term perspective is likely to remain a guiding principle in their investment approach.