Warren Buffett 01 (May 08 - Jan 10)

[winston]

Berkshire Net Falls 7.6% to $2.9 Billion on Insurance (Update3)
By Josh P. Hamilton and Erik Holm

Aug. 8 (Bloomberg) -- Billionaire investor Warren Buffett's Berkshire Hathaway Inc. posted its third consecutive profit decline on slowing returns from insurance.

Second-quarter net income decreased 7.6 percent to $2.88 billion, or $1,859 a share, from $3.12 billion, or $2,018, a year earlier, the Omaha, Nebraska-based company said today in a statement. Excluding investment gains, profit was $1,465 a share, beating the $1,352 average estimate of two analysts compiled by Bloomberg.

Buffett has been seeking non-U.S. acquisitions and funding buyouts as he scales back sales in some insurance units because of price competition. Buffett last month pledged $3 billion to Dow Chemical Co.'s $15.4 billion purchase of Rohm & Haas Co. In April, he agreed to put up $6.5 billion to help Mars Inc. buy Wm. Wrigley Jr. Co. in a deal that gives Berkshire a discounted stake in the chewing gum maker.

``He doesn't have to keep writing bad policies, say in reinsurance, just to maintain market share at the cost of big losses later on,'' said Tom Russo, a partner at Gardner Russo & Gardner in Lancaster, Pennsylvania, which manages more than $3 billion, including Berkshire shares. ``Most competitors do just the opposite, favoring reported profits at the cost of long-term wealth creation.''

`Fewer Opportunities'

Berkshire's earnings from underwriting insurance and reinsurance policies fell 43 percent to $360 million. The businesses typically provide about half of Berkshire's profit. Commercial insurance rates in the U.S. fell 13 percent from a year earlier, the Council of Insurance Agents and Brokers said. Reinsurers assume liabilities from insurers for a share of their premiums.

``Increased price competition resulted in fewer opportunities to write business at prices acceptable to Berkshire Hathaway Reinsurance Group,'' the company said in a regulatory filing.

Increases in the value of some holdings and derivatives raised earnings by $610 million, compared with $608 million a year earlier. Investment income at Berkshire's insurance units, including stock dividends, rose 2.6 percent to $884 million.

Investment losses, fallout from the collapse of the subprime mortgage market, catastrophe claims and falling property and casualty rates caused second-quarter profit declines or losses at 18 of the 24 companies in the KBW Insurance Index.

Berkshire shares had their worst first half since 1990 and are down 18 percent this year in New York Stock Exchange composite trading. Berkshire's results were posted today after the close of regular trading.

Geico Declines

Profit from selling policies at car insurer Geico Corp. fell 8.3 percent to $298 million before taxes on rising claims costs. Price reductions from last year, which went into effect as drivers renewed their policies, cut into the profit margin. The unit added about 105,000 new policyholders in the quarter.

Competitors including Bloomington, Illinois-based State Farm Mutual Automobile Insurance Co., the largest U.S. auto insurer, and No. 3 Progressive Corp. are raising prices for car coverage to counter earlier declines. Geico, ranked fourth, withdrew a proposed increase in New York this week after the state's insurance regulator said companies must consider that Americans are driving less for the first time since 1980.

Geico said today that its policyholders also reported fewer accidents in the first half of the year. Expenses rose as the insurer spent more on advertising.

The worst housing slump since the Great Depression has hurt Berkshire's building-related companies.

Carpet, Paint

Profit fell 26 percent to $82 million at Shaw Industries, the world's largest carpet manufacturer, as sales to residential customers declined. Earnings also dropped for the building products category, which includes Acme Brick, Johns Manville and Benjamin Moore paints.

Profit at the company's furniture stores, jewelry shops and candy business declined 47 percent to $29 million.

``Pretax earnings in 2008 declined in all of Berkshire's retail operations,'' the company said. ``Weak local residential housing markets and general economic conditions as well as an overall decline in consumer confidence has produced a slowdown.''

U.S. housing starts averaged 1.034 million at an annualized pace in the first half of the year, down from an average of 1.806 million in the previous five years, according to the U.S. Commerce Department, as builders reduced construction.

Energy, Utilities

Earnings from Berkshire's energy and utilities unit decreased 10 percent to $208 million.

The contribution from Marmon Holdings Inc., bought this year, helped increase overall profit at Berkshire's manufacturing, service and retailing businesses by 11 percent to $719 million.

Marmon employs about 20,000 people in 125 business units, mostly in North America, Europe and China, according to the company's Web site. Its operations include manufacturing and leasing railroad tank cars and making wire and cable products. The unit earned $261 million in the period ended June 30.

Buffett, 77, completed a four-city European tour in May aimed at drumming up potential acquisitions of family-owned companies as U.S. results slump. Berkshire had about $25 billion in invested cash as of June 30 in insurance businesses.

``He's always looking for a good deal,'' said Charles Hamilton, an analyst at FTN Midwest Securities Corp. in Nashville, Tennessee, in a Bloomberg Television interview.

`Extra Money'

Buffett, ranked the world's richest person by Forbes magazine, told investors at Berkshire's annual meeting in May that his company will ``make some extra money'' from the credit crisis. ``Our general view is if a market goes down, it's more attractive than before,'' Buffett said.

Buffett built Berkshire over four decades from a failing textile manufacturer into a $175 billion holding company by buying out-of-favor stocks and businesses whose management he deemed superior.

[winston]

Buffett Builds Berkshire Holdings as Earnings Decline
By Josh P. Hamilton

Aug. 8 (Bloomberg) -- Devotees of Warren Buffett's investing strategy may need to look no farther for a bargain than the battered stock of the billionaire's Berkshire Hathaway Inc.

``Regardless of what's happening to earnings, the cash is still rolling in and asset prices are down,'' which will help Berkshire add holdings, said Frank Betz, a partner at Warren, New Jersey-based Carret Zane Capital Management, which oversees $800 million, including Berkshire shares. ``It's Buffett time.''

Berkshire may post a 32 percent decline in second-quarter profit today to $2.13 billion as falling prices crimp insurance earnings and building-related businesses slow with the housing slump, said Charles Hamilton, an analyst at FTN Midwest Securities Corp. The Omaha, Nebraska-based investment and holding company's stock had its worst first half since 1990 and is down 18 percent this year through yesterday.

Buffett, 77, has been seeking acquisitions and funding takeovers while buyout firms struggle to borrow. Last month he pledged $3 billion to Dow Chemical Co.'s $15.4 billion buyout of Rohm & Haas Co. In April, Buffett agreed to put up $6.5 billion to help Mars Inc. buy Wm. Wrigley Jr. Co. in a deal that gives Berkshire a discounted stake in the chewing gum maker.

Berkshire had about $35 billion in cash as of March 31 and competing insurers including American International Group Inc. and MBIA Inc. have had to raise capital to cushion against losses from bad bets on the housing market. Buffett toured four European cities in May, drumming up potential acquisitions to boost earnings while U.S. insurance operations decline.

Bricks, Corporate Jets

A profit drop would be the third straight for Berkshire, the company's worst streak since 2004. AIG has been unprofitable three straight quarters, and Robert Willumstad, the insurer's chief executive officer, said yesterday the company ``would not consider any major acquisitions at this time.''

Buffett, ranked the richest person by Forbes magazine, built Berkshire over four decades from a failing textile maker into a $175 billion company by buying out-of-favor stocks and businesses whose management he deemed superior. Subsidiaries provide products from bricks to corporate jets.

Buffett said at Berkshire's annual meeting in May that his company will ``make some extra money'' from the credit crisis. ``If a market goes down, it's more attractive than before,'' Buffett said.

Berkshire entered bond insurance in December as the largest companies in the industry, MBIA and Ambac Financial Group Inc., struggled to maintain their credit ratings. CIT Group Inc., the lender that lost 62 percent of its market value this year through yesterday, said last month a Berkshire subsidiary agreed to pay $300 million for a loan portfolio backed by factory-built homes.

`Caution Flag'

Berkshire's stock may stumble to $108,000 in 12 months, said FTN's Hamilton, who rates the shares ``neutral.'' They advanced $275, or 0.2 percent, to $115,750 at 4 p.m. in New York Stock Exchange composite trading.

``He's given the caution flag and people are ignoring it,'' said Hamilton, based in Nashville, Tennessee. Buffett has said insurance profits will slip as rates fall amid competition for market share and the pace of natural disasters returns to normal after two uneventful U.S. hurricane seasons.

Berkshire investors are betting with history on their side: the shares advanced in 17 of the past 20 years.

When markets are in turmoil, Buffett's offers become more attractive because he has cash available, said Michael Revy, a portfolio manager at Froley Revy Investment Co. in Los Angeles.

The Dow investment was trumpeted by the chemical company as an endorsement of the business, even as Chief Financial Officer Geoffery Merszei said on a conference call with investors that Buffett is ``going to demand very good conditions.''

Private Placement

Berkshire agreed to buy Dow preferred stock paying 8.5 percent annual interest and convertible to common stock. The stake may make Berkshire the biggest shareholder of the Midland, Michigan-based company. Dow paid less than a 6.5 percent coupon on recent bond offerings, according to Bloomberg data through yesterday.

``In a private placement you get an anchor investor'' and don't have to disclose as much financial information as in a public offering, Revy said.

Buffett agreed not to hedge or sell his position for five years, a commitment that most investors may have been unwilling or unable to make, Revy said.

Some investors in convertible securities will short the company's common stock, selling borrowed shares that they can replace cheaper if the company falters. A jump in short selling can unnerve investors, Revy said.

Florida Deal

Also last month, Buffett struck a deal with the state of Florida, which agreed to pay $224 million in exchange for an assurance he'll buy $4 billion in tax-free state bonds paying 6.5 percent should a hurricane cause more than $25 billion in losses to the state's catastrophe reinsurance program this year.

Florida sells coverage to homeowners at below-market rates, and plans to fund cash shortfalls in the bond market

Said Carret Zane's Betz, ``Warren probably gets up every morning and licks his chops wondering `where's the next bargain going to come from?'''

[winston]

Buffett says US economy's troubles will continue

OMAHA, Nebraska - Billionaire investor Warren Buffett said on Friday the economy continues to be in a recession, by his definition, and will continue to be for at least several more months.

Mr Buffett said during a live appearance on CNBC that ripples of the credit crunch are continuing to cause problems in financial businesses and the economy.

He said earlier this year a financial crisis reveals which players have been 'swimming naked', because the tide goes out.

That picture has worsened along with the crisis.

'We found out that Wall Street has been king of a nudist beach,' said Mr Buffett, who is chairman and chief executive of Berkshire Hathaway Inc.

Mr Buffett said the businesses Berkshire owns, especially ones related to housing construction such as Shaw carpet and Acme Brick, continued to slow during the summer.

He said he's confident the US will be doing better five years from now, but the economy could be worse five months from now.

He says the economy is in a recession because most Americans aren't doing as well today as they used to be. The technical definition of a recession most economists use is two consecutive quarters of negative growth in the nation's gross domestic product.

Mr Buffett and another billionaire investor, Pete Peterson, appeared at a special screening of a new documentary on the nation's debts on Thursday in Omaha. The two Nebraska natives were part of a panel discussion after 'I.O.U.S.A.'s' premier that was broadcast in 358 theatres.

The film's message is that an economic disaster will befall the nation if the federal government's US$53 trillion in debts continue to grow.

Mr Buffett said he doesn't think the situation is as dire as the film portrays.

'I admire the fact they tackled the subject,' he said. 'I don't agree with many of the conclusions in the movie.' -- AP

[winston]

Buffett expects government action on Fannie and Freddie

NEW YORK (Reuters) - Warren Buffett said the U.S. economy is unlikely to improve before 2009, and that he expects the government to take action to support troubled mortgage financiers Fannie Mae and Freddie Mac.

Speaking Friday on CNBC television, Buffett said retail businesses within his Berkshire Hathaway Inc, insurance and investment conglomerate have been struggling and that the economy is now suffering from past excesses in the availability of credit.

"You always find out who's been swimming naked when the tide goes out. We found out that Wall Street has been kind of a nudist beach," said Buffett, the world's richest person, according to Forbes magazine.

"What we're seeing in business, in our retail businesses, or anything having to do with housing, is even a further slowing down in June and July, both in terms of credit experience where people first got in trouble with house payments, and now credit card payments," he said.

Referring to the economy, Buffett said: "In my judgment it won't be any better five months from now."

Buffett built Omaha, Nebraska-based Berkshire into a $180 billion conglomerate with some 76 businesses that sell such things as insurance, bricks, carpeting and manufactured housing, as well as ice cream, knives and underwear. It also invests in many blue-chip companies, including American Express Co and Wells Fargo & Co.

Fannie and Freddie shares have plummeted as speculation grows about a government bailout of the companies, which own or guarantee almost half of U.S. mortgages. Shares of both have fallen more than 90 percent in the last year.

"They're too big to fail," Buffett said. "That doesn't mean that the equity can't get wiped out, and it almost has. In a practical sense, as institutions, they don't have any net worth.... People who own their insured mortgages or own their debt, nothing is going to happen to them. The equity and preferred stock is another question."

He forecast that "you'll see some action fairly soon" to support the companies, but that he has not been formally approached to help out in any bailout.

In Thursday trading on the New York Stock Exchange, Berkshire Class A shares closed at $115,000, and Class B shares closed at $3,835.

[millionairemind]

Published August 23, 2008
Buffett, Peterson urge US to deal with US$53t debt

(OMAHA, Nebraska) Two billionaires used the screening of a documentary in theatres across the United States on Thursday to urge the country to come to grips with its staggering debt load.

Warren Buffett and Pete Peterson were at the premiere of the movie I.O.U.S.A. to add their views to the film's message: An economic disaster will befall the nation if the federal government's US$53 trillion in debts continue to grow.

But Mr Buffett said at a news conference before the movie's showing that he doesn't think the country's financial picture is quite as dire as the filmmakers portray.

'I do not regard our national debt as unduly alarming,' said Mr Buffett, who is chairman and chief executive of Berkshire Hathaway Inc, and is listed by Forbes magazine as the world's richest man.

Mr Buffett said that he's confident that the country would be able to address its debts and remain prosperous, but he doesn't want to see the share of the US gross domestic product devoted to debt continue to grow.

'We've overcome things far worse than what is going on right now,' Mr Buffett said, who was interviewed in the movie but is not backing it financially.

The film that was shown on Thursday in 358 theatres nationwide details the federal government's debts. The movie is backed by Mr Peterson - who co-founded the Blackstone Group LP private equity firm and served as commerce secretary under president Nixon - and is part of his foundation's campaign to give the ballooning debt a central role in the presidential campaign.

'What concerns me more than anything is our savings rate,' Mr Peterson said. He said that the meagre US rate of savings today means that roughly 70 per cent of the nation's debts are being bought by foreign investors, and that could create geopolitical and economic problems for the country.

A panel discussion in Omaha followed the movie and was broadcast live to the other theatres, except on the West Coast where it was shown tape-delayed. Thursday's panel discussion featured Mr Buffett, Mr Peterson, AARP chief executive Bill Novelli and William Niskanen, chairman of the libertarian-leaning CATO Institute.

Mr Niskanen said that the nation has to increase the retirement age in Social Security to at least 70 from the current range of 65 to 67. He also backed adding an income test to Medicare so those with more money pay a larger share of their health costs.

Mr Peterson said that he hopes the movie would help explain the problems debt can bring, so politicians will feel more pressure to act. 'The problem is getting the public understanding and the political will to do something about it,' he said.

The I.O.U.S.A. filmmakers followed former US comptroller David Walker as he toured the country, speaking to college groups, newspaper editorial boards and community groups about the nation's financial problems.

Most of the talks in the movie took place while Mr Walker still ran the Government Accountability Office, an investigative arm of Congress that audits and evaluates the performance of the federal government.

Mr Walker and the movie cite GAO figures that show that about US$11 trillion of the US$53 trillion amount covers publicly traded government debt, the amount the federal government owes to employee pensions and the cost of environmental clean-up of federal land. The rest of the figure accounts for projected shortfalls in Medicare and Social Security.

The cost of covering those obligations is expected to soar as more baby boomers become eligible for the two programmes.

Mr Buffett said that he doesn't believe those programmes that help provide for the elderly will consume the bulk of the government's resources in the future because America will be wealthier. 'The important thing to remember is that the pie gets larger over time, and there's more to divide up,' Mr Buffett said.

But Mr Walker, who also took part in the panel discussion, said that he disagrees with Mr Buffett's assessment because the predictions the movie highlights about the country's debt already assume the nation will be wealthier.

Mr Walker said that he hopes both the Democratic and Republican candidates for president will acknowledge the staggering amount of debt the nation carries, and pledge to appoint a bipartisan coalition next year to look for solutions.

The film also featured interviews with prominent businessmen and officials from both major political parties, such as former Federal Reserve chairmen Alan Greenspan and Paul Volcker and former US treasury secretaries Paul O'Neill and Robert Rubin.

Mr Greenspan warned that the nation cannot continue consuming more than it produces indefinitely. 'Without savings, there is no future,' Mr Greenspan said in the movie.

Thursday's screenings and panel discussion will be followed by a 12-city theatrical run beginning yesterday. Mr Peterson says that he wants to have the movie shown on TV next year. -- AP

[ishak]

Buffett says stocks more attactive than last year
Business Times, 23 August 2008

WASHINGTON - Star investment manager Warren Buffett, the world's richest man, said in an interview on Friday that stocks are 'more attractive' than a year ago, with a number of good values to be found.

'I see values in all arenas,' Mr Buffett said in an interview on business channel CNBC.

'We try to look for the best ones, but there's no magic to any given market and things are cheaper than they were a year ago in markets here and in markets around the world,' he said.

'So everything is more attractive, generally speaking, both here and in Germany and the UK and Korea and you name it. And I just try to look for the things I understand the best and that also are selling for less than I think they're worth.'

Mr Buffett, who heads the Berkshire Hathaway investment fund, this year overtook Bill Gates as the world's richest man, according to Forbes magazine annual billionaire's list.

The 77-year-old chief of the Berkshire Hathaway holding company saw his wealth jump from US$52 billion last year to 62 billion.

Mr Buffett, who in the past had voiced concern about the US dollar, said he had no positions against the greenback at the moment, but said the currency could weaken if the United States fails to narrow its massive trade deficit.

'People who think that America is not in the game are totally wrong,' he said.

'But we have been importing like 17 per cent of GDP (gross domestic product). If we have that gap and it continues, the dollar over time will get weaker. Not necessarily next week or next month or next year, but it will get weaker over time.'

Mr Buffett commented however that the US economic crisis stemming from a housing slump and credit squeeze is not over.

'I think it is going to be longer and deeper, but no one knows when - what you do know is that it will turn around,' he said.

'I mean, the country will be doing far better five years from now than it is now, but it won't be, in my judgment, it probably won't be doing better five months from now.'

Questioned about his recent stock buys, Mr Buffett said he had purchased more shares in one financial company but declined to name it. Asked whether he had bought more of Wells Fargo or American Express, he said 'I bought more of one of those in recent months' but did not say which one.

[kennynah]

Asked whether he had bought more of Wells Fargo or American Express, he said 'I bought more of one of those in recent months' but did not say which one.

worthy of rehighlighting...

[ishak]

They are just two of the many comments Buffett made during a series of live appearances with CNBC's Becky Quick throughout this morning's three hours of Squawk Box following last night's premiere of an anti-deficit documentary that includes comments from Buffett.

Among the highlights:

• Berkshire has no direct currency plays right now, including no bets against the U.S. dollar

• Repeats his belief the U.S. economic downturn will be longer and deeper than many people think

• The economy won't be better five months from now, but will rebound within the next five years

• Fed has a very tough job fighting inflation, which he expects will continue to rise

• No immediate interest in making an investment in Canadian oil sands, although he did find his tour of northeastern Alberta this week very interesting

• In retrospect, he made a mistake when he sold a large chunk of his Anheuser-Busch stake before the brewer agreed to a friendly deal with InBev. Buffett said he wasn't sure the deal would go through given Anheuser's initial resistance to InBev's offer

• Made a $500 million bid for a Chinese asset that was rejected, but won't say what it was

• Expects government action to bail out Fannie Mae and Freddie Mac , although there's a "reasonable chance" shares of the two GSEs will eventually go to zero

• Urges contributors to the John Edwards presidential campaign to file a class-action suit seeking the return of their money because Edwards "misled" them about his extra-marital affair

[kennynah]

• The economy won't be better five months from now, but will rebound within the next five years

[millionairemind]

Market has been quiet.. I had quite a bit of time on my hands so I picked up the book Trend Following for another read again...

Inside there was an article on WB that I tot might be of interest to his worshippers.

Newbies better be careful of thinking Buffet's style is just a simple buy and hold forever... he trades quite a fair bit.. if you haven't read the book Trade Like WB, I recommend you read it before you adopt this "buy and hold" philosophy into your investment mindset and suffer for it when there is a BEAR MKT declines like what we are experiencing now.

Ever noticed that WB never wrote a book about his strategy?? It is all this ppe. writing about him and interpreting his style as they see fit.

He is extremely flexible and versatile, don't let appearances fool you into believing that his only strategy is Buy and Hold.

Buffett Sells Derivatives
Michael Covel (February 16, 2005)
Buffett Now Sells Derivatives

TurtleTrader® comment: Buffett can be no clearer below. He thinks derivatives are junk:

Things are less lucrative in the stock market, Buffett said, sounding a familiar refrain. We have more money than ideas, he said, adding that 6% to 7% was a fair rate of return in the current environment. The company has more than $37 billion in cash to invest. One place the money certainly won't go is derivatives. There's no place with as much potential for phony numbers as derivatives, he said. Buffett's 78-year-old billionaire vice chairman, Charlie Munger, couldn't resist chiming in. To say that derivative accounting is a sewer is an insult to sewage.
Forbes, Davide Dukcevich

May 6, 2002

Berkshire Hathaway issues first ever-negative coupon security
TurtleTrader® comment: Sixteen days later Buffett is quietly singing another tune. His press release:

Omaha, Nebraska May 22, 2002 Berkshire Hathaway Inc. (NYSE: BRK.A and BRK.B), announced today that it has sold $400 million of a new type of security, named SQUARZ, in a private placement to qualified institutional investors. The initial purchasers will have an option to purchase an additional $100 million of securities to cover over-allotment. The issuance was upsized from $250 million due to strong market demand. The SQUARZ security, which was created by sole underwriter Goldman, Sachs & Co., is a unit consisting primarily of a Berkshire senior note due in 2007 and a warrant to purchase Berkshire common stock at a premium. The new security is believed to be the first security to carry a negative coupon. The warrants will give the holder the right to purchase either shares of the Company's class A or class B common stock at the holder's option. The initial exercise price represents a 15% premium over the closing price of the class A shares on the NYSE on May 21, 2002. The Notes will pay holders a 3.0% interest rate per annum and holders will pay 3.75% installment payments per annum on the warrants. The warrant payments due from holders will be greater than the coupon on the senior notes, effectively making SQUARZ the first negative coupon security. Berkshire Hathaway will use the net proceeds from the issuance for general corporate purposes, including possible acquisitions, none of which are pending. Despite the lack of precedent, a negative coupon security seemed possible in the present interest rate environment, said Warren E. Buffett, Chairman of Berkshire Hathaway. Mr. Buffett added, I asked Goldman Sachs to create such an instrument and they responded promptly with the innovative security being announced today.

BERKSHIRE HATHAWAY INC. NEWS RELEASE
May 22, 2002

TurtleTrader® comment: Buffett can create derivatives, but no one else? To the larger point though, Buffett seems to have been untruthful back on May 6, 2002. More from the Washington Post:

Wall Street shelled out upward of a half-billion dollars last week after Buffett came up with one of the craziest-sounding deals ever: If you will pay me for the privilege, he said, I will let you lend me money. The deal produced a lot of head-scratching on the business television networks, much mindless chatter on the Internet and a spate of stories about what a strange deal it was, especially for Buffett, who is legendary for his K.I.S.S. investment strategy, as in Keep It Simple, Stupid. Buying good companies whose business you understand and that are available at reasonable prices has long been the Buffett rule. Following that strategy, Buffett bought the Geico Corp. insurance company when its stock was a bargain and has long been the biggest outside shareholder in The Washington Post Co. There is nothing simple about these bonds, known by the name SQUARZ, which is protected by a trademark that Goldman, Sachs registered so no one else could use it. Goldman, never as talkative as most other Wall Street firms, is being so closemouthed about this deal that it has not even explained what the acronym means. Buffett didn't return calls seeking comment. Exactly what Buffett is up to is difficult to determine because the prospectus spelling out details of the deal has not been made public and few people on Wall Street have read it. A spokesman for a firm that manages $175 billion in assets said nobody there could explain it. Nor could two prominent specialists in convertible securities -- bonds that can be converted into stocks. But Wall Streeters say there are certain kinds of investors for whom the Buffett bonds could be an attractive investment -- even if they have to pay him money.
Jerry Knight

Washington Post
May 27, 2002

TurtleTrader® comment: Quite clearly one of Wall Street's kings of keeping things simple has decided to go complex. We have been pointing out the hypocrisy of Buffett for years, maybe now that he is in the derivatives business some of his followers will at least pause in their hero worship -- we doubt it.