ThinkRight

Buffett's Gamble: $40 Billion Bet on Volatility

Buffet got close to 11.25% ($4.5B for $40B)premium for the insurance he sold. CDS for Berkshire comes out to be ($440K for $10M) 4.4%. Even if Buffest buys CDS for full amount for Berkshire default he makes 6.85 and gets off the hook ! :-)