Customer Quote by Warren Buffett
“Derivatives are financial weapons of mass destruction.”
About This Quote
Source Interview: CNBC, 2005
Financial derivatives can cause massive systemic risk if misused.
In simple terms: Derivatives can be dangerous.
Treat complex tools with caution.
Themes
Mood
Type
When to use this quote
- investment banking
- risk management
- policy debates
Key Concepts
Questions to Reflect On
- What safeguards reduce derivative risk?
- Are derivatives always harmful?
Complexity may be overstated.