Berkshire Hathaway outruns index puts it sold pre-GFC

Options that netted Warren Buffett’s company hefty premiums would be worthless at end-2021 market levels

Berkshire Hathaway’s point-in-time liability from a series of equity puts it sold before the global financial crisis dropped to zero in the fourth quarter of 2021, bringing the company one step closer to winning its decade-and-a-half long bet.

Between 2004 and 2008, Warren Buffett’s company sold European-style puts, which can only be exercised on expiry, on four major equity indexes – the S&P 500, the FTSE 100, the Euro Stoxx 50 and the Nikkei 225 – for $4.9 billion in upfront premiums.

  //

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

If you already have an account, please sign in here.

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: