--- title: "Meaning & Key Takeaway of: We've used derivatives for many, many…" description: "\"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 ..." image: "https://sms4smile.com/quotes/i/20c/warren-buffett-183_attention_we-ve-used-derivatives-for-many-many-yea_1518437.png" --- # We've used derivatives for many, many years. I don't think… ![“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.” quote by Warren Buffett](https://sms4smile.com/quotes/i/20c/warren-buffett-183_attention_we-ve-used-derivatives-for-many-many-yea_1518437.png) [Download](https://sms4smile.com/quotes/i/20c/warren-buffett-183_attention_we-ve-used-derivatives-for-many-many-yea_1518437.png) [Open image](https://sms4smile.com/quotes/i/20c/warren-buffett-183_attention_we-ve-used-derivatives-for-many-many-yea_1518437.png) > “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.” [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. 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. ★ ★ ★ ★ ★ No ratings yet [Attention](https://sms4smile.com/quotes/about/attention/) [Customer](https://sms4smile.com/quotes/about/customer/) [Evil](https://sms4smile.com/quotes/about/evil/) [Investing](https://sms4smile.com/quotes/about/investing/) [Thinking](https://sms4smile.com/quotes/about/thinking/) ## Related quotes > [We've used derivatives for many, many years. I don't think derivatives are evil, per se, I think they are dangerous.](https://sms4smile.com/quotes/warren-buffett/we-ve-used-derivatives-for-many-many-years-i-don-t-think-derivatives/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [Derivatives in and of themselves are not evil. There's nothing evil about how they're traded, how they're accounted for, and how they're financed, like…](https://sms4smile.com/quotes/james-chanos/derivatives-in-and-of-themselves-are-not-evil-there-s-nothing-evil/) [James Chanos](https://sms4smile.com/quotes/author/james-chanos/) > [What I think about derivatives is if every institution that owns or trades them is properly margined and marked to market, including end-users, including…](https://sms4smile.com/quotes/paul-singer/what-i-think-about-derivatives-is-if-every-institution-that-owns-or/) [Paul Singer](https://sms4smile.com/quotes/author/paul-singer/) > [I'm such a dork, but I really think there are derivatives to be found between story arcs and character motivations. And the way you…](https://sms4smile.com/quotes/morgan-saylor/i-m-such-a-dork-but-i-really-think-there-are-derivatives-to-be-found/) [Morgan Saylor](https://sms4smile.com/quotes/author/morgan-saylor/) > [Derivatives are like sex. It's not who we're sleeping with, it's who they're sleeping with that's the problem.](https://sms4smile.com/quotes/warren-buffett/derivatives-are-like-sex-it-s-not-who-we-re-sleeping-with-it-s-who/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [If AIG had tried to unwind their derivatives books. I don't know. It would have hit every institution in the world.](https://sms4smile.com/quotes/warren-buffett/if-aig-had-tried-to-unwind-their-derivatives-books-i-don-t-know-it/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [I view derivatives as time bombs, both for the parties that deal in them and the economic system.](https://sms4smile.com/quotes/warren-buffett/i-view-derivatives-as-time-bombs-both-for-the-parties-that-deal-in/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [Derivatives are financial weapons of mass destruction.](https://sms4smile.com/quotes/warren-buffett/derivatives-are-financial-weapons-of-mass-destruction/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [At Berkshire, I both initiate and monitor every derivatives contract on our books ... 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