Skip navigation

RSS FEED

» Help

Current DateTime: 08:34:04 12 Jul 2009
LinksList Documentid: 30078629
Buffett Watch
Text Size
Nov.05
8:58 AM ET
Monday, 5 Nov 2007
WSJ: Warren Buffett Increasingly Turning to "Financial Weapons of Mass Destruction"

The Wall Street Journal has a piece this morning analyzing Friday's third quarter earnings report from Warren Buffett's Berkshire Hathaway.

Reporter Karen Richardson highlights Berkshire's sale this year of $2.5 billion worth of "insurance on stock indexes and bonds in the form of derivative contracts, which guarantee payment to the buyer in the event of a specific loss in an underlying entity of the contracts."

Richardson points out that while Buffett and Berkshire have used derivatives for many years, he's been selling more of them recently, even though he called them "financial weapons of mass destruction" in his 2002 Annual Letter to Shareholders.  Richardson notes that his warnings have generally focused on buyers of derivatives borrowing too much money to make the purchases.

Questions?  Comments?  Email me at


Tools:
PrintEmailAdd This share icon
Next Post


Current DateTime: 01:05:38 12 Jul 2009
LinksList Documentid: 29778428

Current DateTime: 01:05:47 12 Jul 2009
LinksList Documentid: 29779196

Current DateTime: 01:05:38 12 Jul 2009
LinksList Documentid: 29779199

Current DateTime: 01:05:47 12 Jul 2009
LinksList Documentid: 29779198
CNBCCNBC
About CNBC  |  Site Map  |  Privacy Policy  |  Terms of Service  |  Video Reprints  |  Advertise  |  Help  |  Contact
Partners: AOL Money  |  BloggingStocks.com
CNBC is a Division of NBC Universal
  Data is a real-time snapshot *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
Thomson ReutersThomson Reuters