Buffett takes $2bn derivatives hit

Warren Buffett's Berkshire Hathaway group lost more than $2bn on derivatives related to stock market performance in Q3.

This hit net profits for the company which were $2.28bn in Q3 compared with $2.99bn the previous year. The derivatives loss was nearly three times what Berkshire lost on the same instruments a year ago, reports CITY AM. Buffett has criticised derivatives in the past, but said these particular contracts were safe and would ultimately be lucrative. But Berkshire was hurt by sharp market declines over the period and said the indexes covered by the contracts fell anywhere from 11% to 23%. Cash at the end of the quarter was $34.78bn, down from $47.89bn at the end of June. During Q3 Berk...