Trading US Stock Market Securities and Derivatives

[innosoftcebu]

---

There has been a lot of talk about PSE stocks, but is there somebody here who is trading US market and its derivatives?

[nodols3]

From the Oracle of Omaha himself:

Derivatives are Financial Weapons of Mass Destruction
by Warren Buffett
In my 2002 letter to shareholders I referred to derivatives as "weapons of mass destruction." Derivatives are really just a way to create a product with a very long fuse, for example, 100 years, as opposed to stocks which settle in 3 days. That kind of system allows claims to be built up. AIG called me in September and told me they were about to get downgraded which would have required higher posting requirements. Now this is an enterprise that has been built up over decades and was effectively destroyed in 48 hours by these products. With derivatives, you're exposed to counterparties and thus reliant on others. These claims built up over time to the tune of billions of dollars and when one falls, the whole system falls. Derivatives are not evil by themselves but rather everyone needs to be able to handle them. System wide, they're rat poison. Berkshire holds many derivatives but we always hold the money at Berkshire.

[innosoftcebu]

Thank you nodols for the caption. But is there anyone trading here? Take out the derivatives, just US stocks.

[dodongisputing]

From the Oracle of Omaha himself:

Funny considering that Berkshire Hathaway invests so much on derivatives.