Buffett to Disclose More on Derivatives; Tilson Ups Berkshire Stake

Warren Buffett says he will give more information on Berkshire Hathaway’s much discussed derivative bets in the company’s end-of-year-report, Reuters is reporting. The derivatives contracts call for the firm to pay out billions to purchasers if, by certain dates starting in 2019, four different market indices fall below agreed-upon levels. Rumors that Berkshire’s liabilities for the contracts could be more than previously thought caused the firm’s stock to plunge — and its credit default swap rates to surge — last month. Buffett isn’t expressing worry about the deals, however, nor is hedge fund manager and Kiplinger’s columnist Whitney Tilson. Tilson […]

Tilson, Heins See Upside

In Kiplinger’s Discovering Value column, Whitney Tilson and John Heins say there are two silver linings that have emerged from the market turmoil. The first is that the unprecedented market volatility might be the signal of a stock market bottom, and once that bottom is reached the market could generate some impressive gains. The second positive is that the downturn in the market has created some excellent long-term buying opportunities, and the columnists/money managers like larger caps like Berkshire Hathaway, McDonald’s, Wal-Mart and small/mid caps that have been hit by lowered earnings expectations and hedge fund selling. Tilson and Heins […]