Attention Quote by Warren Buffett
“We've used derivatives for many, many years. I don't think derivatives are evil, per se, I think they are dangerous. ...So we use lots of things daily that are dangerous, but we generally pay some attention to how they're used. We tell the cars how fast they can go.”
About This Quote
Source Annual Shareholder Letter, 2020
Derivatives are tools that can be dangerous if misused, similar to other powerful technologies.
In simple terms: Derivatives can be risky when not carefully managed.
Key Takeaway
Use derivatives with strict risk controls.
Themes
finance
risk management
derivatives
Mood
cautious
pragmatic
Type
advice
observational
When to use this quote
- investment
- corporate finance
- risk assessment
Key Concepts
economics
regulation
market dynamics
Questions to Reflect On
- What safeguards are essential for derivative use?
- How can investors stay informed about risks?
A Different Perspective
Even useful tools can cause harm without oversight.
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