The Economic Times

Warren Buffett once called derivatives time bombs, then bet $40 billion on them. What this says about the legendary investor

Despite calling derivatives financial weapons of mass destruction in 2002, Warren Buffett amassed a $40 billion derivatives exposure by 2007. As Indian regulators express growing concern over retail F&O losses exceeding Rs 90,000 crore, Buffett's experience offers crucial risk management lessons for retail option traders.