Warren Buffett, the world’s greatest investor, has vowed that his derivatives bets will come good, despite declaring a $1.6bn loss under new accounting rules.
He said the company’s derivative position would ‘sometimes cause large swings in reported earnings’ now that changes in the net worth of derivative contracts are being applied to quarterly earnings.
‘We are always ready to trade increased volatility in reported earnings in the short run for greater gains in net worth in the long run,’ he said.
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