Fran the man

Buffett Serving Free Lunch?

Fair point, provided BRK accesses public markets for debt and such debt is priced with reference to the BRK's CDS spread. However, BRK uses very modest levels of conventional gearing and, in its main business of insurance, credit ratings from the ratings agencies remain all important.





On Nov 25 11:50 AM raytayzmd wrote:

> This guy better explains what I'm getting at:
>
> "He (Buffett) has the cash, he doesn't have to post collateral (we
> hope), he's comfortable that in 18 years the market will be 65% higher,
> and he claims he doesn't care about the mark to market risk. I'm
> not sure he thought it through completely though: even if he has
> no collateral issues, the action of the person covering themselves
> against his risk certainly does, and that person is screwing up Warren's
> ability to finance himself elsewhere."
>
> crookery.blogspot.com/...
>