Warren Buffett: Derivatives Could Trigger Massive Financial Collapse

Warren Buffett has made clear on various occasions the threat posed by derivatives for equity investors and society at large. In this video, he explains in further detail his views on the complex topic of derivatives.

[@ardendba]

Warren predicted 2008 😅

[@kathieharine5982]

Yes!

[@Michelle-li4wb]

What year was this taped

[@rblom1632]

My broker does not allow to set out long term orders at very low rates, to catch some falling knives. Sadly.. Because some Dutch banks have turbo products. Basically you lend half of the stock and own half. If the price drops about 40% it sells automatically. So the price drops even more and other turbos sell as well. This could cause an automatic crash in a super short period of time. (seconds in theory)
So I'd like to catch these automatic crashes. Also in times like Corona they can make a stock fall even faster.

[@MrFox64057]

I hear people quote Warren Buffett as a counter argument when I bring up derivatives 🤦🏻‍♂️