Derivatives are weapons of mass destruction” –Buffett 2002 “We are delighted that we hold the derivatives contracts that we do” –Buffett 2009
Legendary value investor, Warren Buffett, is no stranger to media attention. Over the past few years, he has been very vocal about economic issues. In August, the second richest American announced a $5 billion deal with Bank of America (NYSE:BAC), which according to Buffett, was conceived in a bathtub. The deal signaled a vote of confidence in the struggling bank, a similar strategy he used to inject confidence into Goldman Sachs (NYSE:GS). Now, Buffett is making headlines once again by announcing that Berkshire Hathaway may repurchase its own shares. Buffett’s latest announcement shows his confidence in Berkshire Hathaway (NYSE:BRKA), but also clouds the teachings of the Oracle.
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