tkenyon

Setting the Record Straight on Buffett and Derivatives

This confounds me as well. Surely Kass is is smarter than his statements on Berkshire's "style drift" make him appear. Buffett sold index puts for about $4B if I recall correctly. As long as the indexes in question are at higher levels in 15-20 years (a pretty darn good bet), the puts expire worthless. Meanwhile Buffett gets $4B to play with. Not even in the same universe as the so-called FWMD's. (I'm long BRK)