--- 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.\" — Warren Buffett" image: "https://sms4smile.com/quotes/i/e0d/warren-buffett-183_attention_we-ve-used-derivatives-for-many-many-yea_1084580.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.” quote by Warren Buffett](https://sms4smile.com/quotes/i/e0d/warren-buffett-183_attention_we-ve-used-derivatives-for-many-many-yea_1084580.png) [Download](https://sms4smile.com/quotes/i/e0d/warren-buffett-183_attention_we-ve-used-derivatives-for-many-many-yea_1084580.png) [Open image](https://sms4smile.com/quotes/i/e0d/warren-buffett-183_attention_we-ve-used-derivatives-for-many-many-yea_1084580.png) > “We've used derivatives for many, many years. I don't think derivatives are evil, per se, I think they are dangerous.” [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 can be risky tools despite their usefulness. **In simple terms:** Derivatives are dangerous. Key Takeaway Use derivatives cautiously. Themes finance risk management investment Mood cautious pragmatic Type advisory philosophical When to use this quote - portfolio diversification - risk assessment - trading strategies - financial education Key Concepts Leverage market speculation hedging strategies Questions to Reflect On - Do you fully understand the instruments you use? - How can you mitigate derivative risks? A Different Perspective Complexity can mask hidden dangers. ★ ★ ★ ★ ★ 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. ...So we use lots…](https://sms4smile.com/quotes/warren-buffett/we-ve-used-derivatives-for-many-many-years-i-don-t-think-derivatives-2/) [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. 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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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