Letters by Topic
Letters on Derivatives as Time Bombs
Complex financial instruments that Buffett has repeatedly called 'weapons of mass destruction' due to their hidden leverage and systemic risks.
2002·First famous characterization of derivatives as dangerous
Derivatives are financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal.
2008·Acknowledgment of the 2008 crisis validated his concerns
We have been largely correct in our analysis of derivatives as time bombs, both for the parties that deal in them and for the financial system.
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Derivatives as Time Bombs is one of the ideas behind the ValueOS tools. See it applied to real companies.