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Re:Warren Buffett to Step Down from Berkshire Hathaway at Ye... by Flatcircle on Saturday May 03, 2025 @07:36PM (#43883241)
Charlie Munger used to talk about how easy it used to be because there was so much less competition and the competition wasn't that smart. Think by the 70's once they figured out how to accurately price options with the Black-Scholes model things started to ramp up. By that point, Buffett was already a player and had the funds to make moves.
Re:Warren Buffett to Step Down from Berkshire Hathaway at Ye... by deeg on Saturday May 03, 2025 @10:09PM (#43883930)
Interesting. I've never heard of that model. So what Munger is implying is that by the 80s even Buffett wasn't beating the market but was leveraging his money for gains. Thanks!
Re:Warren Buffett to Step Down from Berkshire Hathaway at Ye... by Flatcircle on Sunday May 04, 2025 @03:30AM (#43885172)
Sorry I didn’t mean Buffett and munger used the option pricing, I mean regular people did. They also got more money by buying up insurance companies and investing the float
Re:Warren Buffett to Step Down from Berkshire Hathaway at Ye... by tim333 on Sunday May 04, 2025 @10:03AM (#43886765)
Buffett did one time write some option but he got a lot of grief from the credit rating people over it.