dear uncle warren, please watch druckenmiller, on cnbc this morning,
and give very serious thought to reducing our exposure to the index puts we are short, unhedged , while the markerts are at record highs with the VIX at 14.
btw, if these puts have lost 5 years in time value and the markets are at record highs with a low VIX, HOW can we be in the hole on these contracts if you covered some or all of them if the buyers let you cover ? thank you.
Hi H, the AR is year-end 2012; I don't think we can be underwater on those puts today.
Does it strike you as somewhat ironic that WEB has now found religion when it comes to stock buybacks? I still cannot understand why he was so adamently against them for all those years and now he seems to embrace them like there is no tomorrow. Just as BRK was so overwhelmingly a better alternative to cash for many years of BRK's existence, and particularly during and after the '09 crash, I just can't believe that BRK was the absolute cheapest large cap stock out there to buy at the end of 2012. What gives?
buffett said brk is in the hole if he closed the puts out, monday,it makes no sense to me after 5 years ? the 1.2 billion buyback at 1.16 xs book was a favor to an old loyal friend, imo. he bought another odd lot, 100 million to make it look right , so it doesnt look like he did the estate a favor. does it make sense that brk was worth 10 % more that week ? HE didnt buy brkb with both hands in sept 2011 either in the 70s, but im happy to get todays price for a piece of my brk it would be at bookish if not for the gimmick, to goose the stock up. he has little to no interest in buying back brkb.