Another Buffett hypocrisy alert!

This 1982 letter that inveighs against the use of index derivatives.  Recenlty Buffett heavily lobbied Congress to exclude provisions in the financial reform bill that would force Berkshire to pony up more capital for its short index derivative (puts) position… courtesy of Forbes:

1982 Buffet Letter

Category: Derivatives, Think Tank

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

2 Responses to “1982 Buffett letter to Cong. Dingell on Derivatives”

  1. Denis says:

    Oh come on… Hypocrisy? Haven’t you ever changed your mind over the course of a conversation? How about over the course of 30 years? You know… going something like: “Ok, you make sense and I don’t!”

  2. martin b roberts says:

    I have to agree with Denis here. In addition to the 25 year time difference, Buffet is talking about futures in 1982, so mostly maximum 1 year contracts, and what he sold was 13 and 18 year puts on the S&P in 2007 iirc. You can’t conflate his argument for futures being short term gambling mechanisms to include a more than decade long position.