Warren Buffet has posted his annual letter to shareholders. for 2008.
This was the worst year in Berkshire history since present management took over.
i am not up to reading it on a computer screen tonite, it is about 20 pages long but I am sure well wroth reading.
Here is an update on Buffet's admitted option exposure.
I wonder if this is the whole story or if his re insurance firm actually has more exposure.
My suspicions about BRK's credit default exposure is not the derivatives that he has sold due many years from now. My suspicions are that credit default swaps issued by companies like Swiss Re, GE, AIG will ultimately lead to Berkshire and that those CDS are not adequately funded. I wonder if that is why Buffet is putting money into other firms clearly in bad shape.
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