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I honestly think someone has loaded up on a position and stolen his Twitter and Reddit passwords. Doesn’t matter much as the price is gonna soar.
I honestly think someone has loaded up on a position and stolen his Twitter and Reddit passwords. Doesn’t matter much as the price is gonna soar.
Any luck before it went back up? Man, just one share even...Please please fill my Berkshire limit order.
Nice, so he doesn't like shorts. Ok cool. What else has he said about shorts?It's a whole lot easier to make money on the long side. You can't make big money shorting because the risk of big losses means you can't make big bets. It's ruined a lot of people. You can go broke doing it.
Moreover, Buffett has used this share-lending strategy with some of his other companies. The Berkshire CEO related a story in which a large brokerage company approached Buffett wanting to borrow USG (USG) stock to sell short.I would welcome people wanting to short Berkshire. In fact, I'd lend them stock and earn extra income. They're a certain future buyer. If anyone wants to naked-short Berkshire, they can do it until the cows come home. In fact, we'll hold a special meeting for them."
Buffett has said a lot about shorts over the years, but this is sufficient for our discussion here."We charged them a lot," Buffett said. "We even forced them to hold it for a certain period of time so we could continue to earn money on the borrow."
I had a limit order for 2 shares at $400.00 each. Unfortunately, they were left unfilled.Any luck before it went back up? Man, just one share even...
Warren "****ing" Buffett has bailed out Kenny. Or at the very least, been partner to Kenny's swap. Buying and supporting POPCORN does nothing but hurt GME and help Kenny hedge. Run away apes.I would welcome people wanting to short Berkshire. In fact, I'd lend them stock and earn extra income. They're a certain future buyer...
Charlie [Munger, Buffett's long-time partner at BRK] and I are of one mind in how we feel about derivatives and the trading activities that go with them: We view them as time bombs, both for the parties that deal in them and the economic system. Essentially, these instruments call for money to change hands at some future date, with the amount to be determined by one or more reference items, such as interest rates, stock prices or currency values.
The range of derivatives contracts is limited only by the imagination of man (or sometimes, so it seems, madmen). Say you want to write a contract speculating on the number of twins to be born in Nebraska in 2020. No problem – at a price, you will easily find an obliging counterparty.
But the parties to derivatives also have enormous incentives to cheat in accounting for them. Those who trade derivatives are usually paid (in whole or part) on “earnings” calculated by mark-to-market accounting. But often there is no real market (think about our contract involving twins) and “mark-to-model” is utilized. This substitution can bring on large-scale mischief. As a general rule, contracts involving multiple reference items and distant settlement dates increase the opportunities for counterparties to use fanciful assumptions.
Large amounts of risk, particularly credit risk, have become concentrated in the hands of relatively few derivatives dealers, who in addition trade extensively with one other. The troubles of one could quickly infect the others. Linkage, when it suddenly surfaces, can trigger serious systemic problems.
Indeed, in 1998, the leveraged and derivatives-heavy activities of a single hedge fund, Long-Term Capital Management, caused the Federal Reserve anxieties so severe that it hastily orchestrated a rescue effort. In later Congressional testimony, Fed officials acknowledged that, had they not intervened, the outstanding trades of LTCM – a firm unknown to the general public and employing only a few hundred people – could well have posed a serious threat to the stability of American markets. In other words, the Fed acted because its leaders were fearful of what might have happened to other financial institutions had the LTCM domino toppled. And this affair, though it paralyzed many parts of the fixed-income market for weeks, was far from a worst-case scenario.
One of the derivatives instruments that LTCM used was total-return swaps, contracts that facilitate 100% leverage in various markets, including stocks. For example, Party A to a contract, usually a bank, puts up all of the money for the purchase of a stock while Party B, without putting up any capital, agrees that at a future date it will receive any gain or pay any loss that the bank realizes. Total-return swaps of this type make a joke of margin requirements. Beyond that, other types of derivatives severely curtail the ability of regulators to curb leverage and generally get their arms around the risk profiles of banks, insurers and other financial institutions. Similarly, even experienced investors and analysts encounter major problems in analyzing the financial condition of firms that are heavily involved with derivatives contracts. When Charlie and I finish reading the long footnotes detailing the derivatives activities of major banks, the only thing we understand is that we don’t understand how much risk the institution is running.
The derivatives genie is now well out of the bottle, and these instruments will almost certainly multiply in variety and number until some event makes their toxicity clear. Knowledge of how dangerous they are has already permeated the electricity and gas businesses, in which the eruption of major troubles caused the use of derivatives to diminish dramatically. Elsewhere, however, the derivatives business continues to expand unchecked. Central banks and governments have so far found no effective way to control, or even monitor, the risks posed by these contracts.
Damn Buffett. "Financial weapons of mass destruction." Guess he doesn't ever use the things then eh?”Derivatives are financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal.
Improved “transparency” – a favorite remedy of politicians, commentators and financial regulators for averting future train wrecks – won’t cure the problems that derivatives pose. I know of no reporting mechanism that would come close to describing and measuring the risks in a huge and complex portfolio of derivatives. Auditors can’t audit these contracts, and regulators can’t regulate them. When I read the pages of “disclosure” in 10-Ks of companies that are entangled with these instruments, all I end up knowing is that I don’t know what is going on in their portfolios (and then I reach for some aspirin).
Derivatives contracts, in contrast, often go unsettled for years, or even decades, with counterparties building up huge claims against each other. A frightening web of mutual dependence develops among huge financial institutions. Participants seeking to dodge troubles face the same problem as someone seeking to avoid venereal disease: It’s not just whom you sleep with, but also whom they are sleeping with. Sleeping around, to continue our metaphor, can actually be useful for large derivatives dealers because it assures them government aid if trouble hits.
I wonder if anyone actually was able to. Have to imagine trading was also halted during whatever this "glitch" was.
Tried to buy a share and it wasn't filled.I wonder if anyone actually was able to. Have to imagine trading was also halted during whatever this "glitch" was.
Tried to buy a share and it wasn't filled.
I didn't expect it to work, but it would have been nice.Damn and I totally thought that would work too! 🤣
The market is rigged, they ain’t giving away $600K shares to peasants.
Don't follow him at all, but I'm guessing he's cashed out a really nice amount in addition to having some still in for the ride.
Looks like they’ll be reversing any trade that actually went through…Tried to buy a share and it wasn't filled.
Don't follow him at all, but I'm guessing he's cashed out a really nice amount in addition to having some still in for the ride.
Read up on him a little, I would have thought so also but, no, he has only bought more.Don't follow him at all, but I'm guessing he's cashed out a really nice amount in addition to having some still in for the ride.