Fran the man

Buffett Serving Free Lunch?

I refer you to an articles written by Mr Buffett (it was actually a speech he had made earlier in 1999 distilled into an article published by Fortune the same year).

homepage.mac.com/bobem...

My personal view is that this is the only article one ever needs to read to understand the fundamental drivers of any financial asset (and specifically stock valuations).

Any one who wants to understand his thinking in structuring the options (and I can promise you he did it without ever looking a Black Scholes valuation model) and the real economic implications for BRK.

Interesting fact about the article referred to above; it was written when the Dow Jones Industrial Average was at c. 9150. Last I checked it was at c. 8200. Remember this was in the heady days of the Internet Bubble when books entitled: Dow Jones 36 000 were in vogue and everyone had their 401k's in Pets.com.

He was right then and I'm willing to write you a binary option he'll be right again.