How Warren Buffett Lost $1.1 Billion On His Financial Weapons Of Mass Destruction

According to BusinessInsider’s Sam Ro Berkshire Hathaway's Q2 earnings are out, and it looks like they beat Wall Street's consensus estimates.

One nugget we're always interested in is the value of his long-term derivative bets on the global stock markets.  In case you forgot, Berkshire had sold put options on the S&P 500, FTSE 100, Euro Stoxx 50, and the Nikkei 225. The value of these positions increase when stocks go up and vice versa.

Given the stock market's poor showing in Q2, it's no surprise that the value of Berkshire's option positions fell. In Q2, their value fell by $1.179 billion.  Of course, these are just paper losses….

Read more: http://www.businessinsider.com/warren-buffett-11-billion-financial-weapons-of-mass-destructions-2012-8