Berkshire Profit on Goldman Sachs Passes $2 Billion

"Life is too short to cut corners to make an extra buck. Wealth can always be recreated but reputation takes a lifetime to build and often only a moment to destroy... "

“We will not trade reputation for money.”

 

Tilt. Tilt. Tilt.

Keep digging moron. You're beyond pathetic.

Here's what the market thinks about the paper losses:



And here's what Buffett & Munger think about them. But only you "understand" the real deal, right chicken little?

From Berkshire's 2008 ltr:
We have told you before that our derivative contracts, subject as they are to mark-to-market accounting, will produce wild swings in the earnings we report. The ups and downs neither cheer nor bother Charlie and me. Indeed, the “downs” can be helpful in that they give us an opportunity to expand a position on favorable terms. I hope this explanation of our dealings will lead you to think similarly.

From Berkshire's 2009 ltr:
As we’ve explained, these wild swings neither cheer nor bother Charlie and me. When we report to you, we will continue to separate out these figures (as we do realized investment gains and losses) so that you can more clearly view the earnings of our operating businesses. We are delighted that we hold the derivatives contracts that we do. To date we have significantly profited from the float they provide. We expect also to earn further investment income over the life of our contracts.

From Berkshire's 2011 ltr:
Charlie and I continue to believe that our equity-put positions will produce a significant profit, considering both the $4.2 billion of float we will have held for more than fifteen years and the $222 million profit we’ve already realized on contracts that we repurchased. At yearend, Berkshire’s book value reflected a liability of $8.5 billion for the remaining contracts; if they had all come due at that time our payment would have been $6.2 billion.

 

Cool story, Bro!

Please keep posting the same moronic shit... but I predicted the $8B write-down to within a few million.

 

Because bragging on the internet will have a positive expectancy lol

 

He stated the $5.1B was accurate. It was not. He didn't want to take another write-down (specifically on the $1.8B loss to single-name vol) because (his words) it didn't reflect a "change in fundamentals." wtf. The guy is a scammer... when things are good he plays by the rules, when bad he makes shit up. 10% vol-line with the SPX down 20%+!? Major indices and bog-standard vanilla options. What do his opinion of fundamentals have to do with the spot price and vol-figure?

He does an incredible amount of good with the Gates Foundation and tax reform. I think it's respectable that he will donate the majority of his wealth.

You would keep it quiet if you had predicted an $8B write-down that wasn't in the mkt?

 

Given the size of the transaction, I'm sure the auditors reviewed the marks thoroughly.

He prob had some lea way in marking the position and took all that he could. Wouldn't you, if it were legal?

 

Then why the $8B write-off after a rally? Anyway, the marks were ridiculous and the SEC took issue. I caught a lot of shit for posting the accurate and eventual figure.

 

Well riskarb==>atticus==>drownpruf, the ET community is indeed fortunate that you care so much about this important issue because the market certainly does not and neither do Buffett or Munger. Maybe, just maybe, if you provide us with daily MTM updates to keep Buffett on the straight and narrow until the last contract closes in 2028, someone might PM Baron and suggest that he give you an award?