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Thursday, November 13, 2008

Actual shorting of Berkshire Hathaway.

Shares of Warren Buffett's Berkshire Hathaway have closed at a two-year low.The Class A stock fell 3.2 percent to finish the day (Wednesday) at $103,333 each.

Some traders are shorting the stock because of Buffett is betting that the stock market will go up.

'Based on (equity and) equity index prices as of October 31st (2008) applied to Berkshire's investment holdings and its equity index put option contracts, Berkshire estimates (that) consolidated shareholders' equity would decline by approximately nine billion dollars.'

Because it had a 40 billion dollar short index put position on. That means, actually, that he was betting on the market going up. Bullish, was Mr. Buffett on the market.

-Stock Article Link

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