LEAPS CALLS are so cheap! Jan 2015 $90 and $95 has such low premium that once can easily
triple or quadruple ones investment in the LEAPS and risk is very low. As the book value goes north of $120K, WEB will buy back shares above $95.
I have never seen such a ZERO RISK investment in the market!
I agree that long term, the risk:reward is GREAT... however, be careful of thinking that the 120% of Book is a price floor. Buffett has explained that he will not use the share repurchase to prop up the stock, and he makes no guarantee that they WILL buy shares at that price point (thankfully). I have had a number of opportunities recently to buy up B shares trading below 120% of book value.
Mr. Buffett wants to lower the share count... he will try to get the shares as cheaply as he can.
In principle, tho, I think you are absolutely spot on that this company has sensational risk:reward... :)