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  • Buffett's Gamble: $40 Billion Bet on Volatility  [View article]
    Muzie wrote: "That's like saying he's taking a "bath" because he could have bought a <b>rising</b&... stock for the lowest possible price but instead bought it 10$ more ...."

    But he sold puts near the peak, apparently, so the "stock" has been <b>falling</b... And there's no guarantee that it will get back up either, any more than the Nikkei has since its peak. Buffet was doing what Taleb Nassim warned against in his two books: collecting what he thought was risk-free "free money."

    He had better hope inflation will save him. So far he's had to "write down" his balance sheet considerably. That counts as "taking a bath."
    Nov 21 19:27 pm |Rating: +1 -1
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