Mega billionaire Warren Buffet once called derivatives "financial weapons of mass destruction." Apparently, Buffet has failed to heed his own advice to avoid them.
Warren Buffett's company posted an 8 per cent drop in third-quarter net income as the value of its derivatives portfolio fell sharply, but BNSF railroad and Berkshire Hathaway's (BRK.A-N125,560.001,080.000.87%) many other operating companies performed well...
The biggest factor in the decline was a $95-million loss on Berkshire's derivatives, some of which are tied to equity markets and credit defaults. A year ago, those derivatives were worth $1.1-billion.
Buffet is riding a real 'fail' train lately. He endorsed Barack Oabama for president and last year he endorsed President Obama's failed economic plan.
2 comments:
It is difficult to understand how a man as smart as Warren Buffet could endorse socialist Barack Obama. Senility?
It is difficult to understand how a man as smart as Warren Buffet could endorse socialist Barack Obama. Senility?
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