Looks like my smart-ass is right!! http://www.berkshirehathaway.com/qtrly/2ndqtr08.pdf FORM 10-Q Q/E 6/30/08 7 Notes To Interim Consolidated Financial Statements (Continued) Note 5. Derivative contracts of finance and financial products businesses (Continued) Under certain circumstances, including a downgrade of its credit rating below specified levels, Berkshire may be required to post collateral against derivative contract liabilities. However, Berkshire is not required to post collateral with respect to most of its credit default and equity index put option contracts and at June 30, 2008 and December 31, 2007, Berkshire had posted no collateral with counterparties as security on these contracts.
Market up and BRK.A down. Looks to be threatening 100k level... ...on the downside! :eek: What would that do to his psyche?
Hey Mr. Smartypants, thanks for posting that 10Q -- ok if I got it right, his derivative liabilities have gone up about 1.6B in 6 months to 6/08. Mkt's biggest drops happened after this report. So I would assume his losses have grown significantly in the latest qtr. My main point is that Buffett's timing was bad and his puts are under water big time. My guess is the other side is GS or someone like that who bought some long-terms vols on the cheap and booked some good P&L. Could you post the next qtr's report when it comes out? Unless he is hedged, he has to mark them against him. Good trading!
BRK was at $6K in the early 90's, was in the 80s in 2006, I think people sometimes need a little perspective on this site. Just like in 87 there were some 3000 banks on the problem bank list, now under 200.
BRK-A up just 2.6% on a day SPX rocketed 10.8% probably nothing but one has to wonder... My take: Mkt went up on short covering and not real new investments -- i..e., Looks like another opportunity to short tomorrow afternoon.
Buffett has seen it all before. When he went long a few week ago he was certain based on 60 years of expierence that was the bottom. He will be vindicated.