Ultimately, Berkshire is likely to profit on the puts because they're apt to expire worthless, assuming markets recover in the next 11-to-19 years, which is a pretty fair bet notwithstanding the
Berkshire also has made bullish derivative bets on the junk-bond market, involving so-called credit default swaps on $8.8 billion of high-yield debt, which means the company would have to pay off if a
As of now, the puts are under water, perhaps to the tune of $3 billion. Arguably, Buffett was too early. If he had sold the puts recently, he would have generated enormous premiums because of high mar
