Value Investing News

"If Warren Buffett can't figure out derivatives, can anybody?"

"When Buffett bought the company in 1998, he quickly decided he wanted out. At Buffett’s behest, Brandon embarked on a task that lost Berkshire and Gen Re a cool $409 million before taxes. The experience led Buffett to write in his 2002 letter to Berkshire Hathaway shareholders what has become the most memorable line about the instruments: “Derivatives are financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal."

• http://www.portfolio.com/news-markets/national-news/portfolio/2007/03/29/The-300-Trillion-Time-Bomb?page=1 (28)