Kirk's Market Thoughts Message Board

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Non-Tech : Kirk's Market Thoughts

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Nov 17 3:59 PM EST

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To: Jerome who wrote (1420)	6/22/2014 9:15:58 AM
From: Sr K	Read Replies (1) of 26528

Re: I do not know of any hedge fund managers taking large positions in any ETF. Nor does Warren Buffett use these vehicles to enhance his holdings in any significant manner. He has used index puts, by selling them. Berkshire Hathaway made multiple "bets" by taking large positions, equivalent to selling puts expiring in 2018, on 4 broad-based indices. BRKA has had quarterly losses in the billions and gains in the billions, which it marks to market each quarter. It is now significantly ahead. It's similar to the insurance operations. They took in premiums in the $4 billion plus range, the markets tanked and the liability exceeded $6 billion. The current quarter will show a multi-billion dollar gain (as of 6/20). And the original contracts would expire worthless unless settled early or rolled out further. The annual reports give a summary.

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