Also isn’t it a little hypocritical of him to be playing with CDSs, after he called them financial weapons of mass destruction?
NakedPuts Wrote: ------------------------------------------------------- > CFA_Halifax Wrote: > -------------------------------------------------- > ----- > > They probably should waited you know, like 6 > > mos-1 yr before jumping the gun on this one… > > They should have waited 10 years, because that’s > Buffetts approximate time horizon when making > these decisions. They fail to understand that > Buffett simply does not care whether his positions > are profitable six months from now or not. Will Buffet even live that long? I guess Gates’ foundation will be the beneficiary of those returns.
I don’t know, but between him and Greenspan, I don’t know what the financial punditry world will do when these two croak… Clearly Larry Kudlow is the next authorative voice in global finance and the markets!!!
50th anniverasry letter coming out…whats everyone expecting?
selling cds, derivatives, insurance, are all dangerous since if one were to default. it could be catatrosphic. since some people use derivatives to secure a position then relevarage in another position. that being said, selling insurance is pretty damn profitable because you are receiving premiums simply for promising them peace of mind in the event of a catastrophic event. the irony of it all, is that when a catastrophic event occurs, you are juss as likely to default on them as well. buffett’s risk management skills is what gives him credibility leading to higher premiums which in turn leads to higher returns.
I was nostalgic looking at all those former posters.