credit default swaps, index put options, and Warren Buffett

You can read about the earnings drop-off here at Bloomberg

http://www.bloomberg...6...&refer=home

or the company's 10Q here and go to page 23.

http://www.berkshire...ly/1stqtr08.pdf

I thought about buying brk.b for my retirement account but after seeing this I changed my mind.

Some of us believe that main street hasn't been noticeably affected yet so when the slowdown gets more serious there should be even more losses from derivative contracts.

Although the stock market has a tendency to rise over a long horizon, the continued unrealized losses form Index put options cannot be good for brk's earnings, and therefore, its stocks over the short term.

Should I just close my eyes and buy the dip or wait and see?