Buffett makes a great deal of cash flow from writing options, so take what he says with a grain of salt. "The brilliance behind Buffett’s investment in Berkshi

Buffett makes a great deal of cash flow from writing options, so take what he says with a grain of salt. "The brilliance behind Buffett’s investment in Berkshire is astounding. He effectively used (and uses) Berkshire as the world’s largest option writing house. The premiums and cash flow from his insurance business created dividends that he could invest in other businesses. But Buffett wasn’t just buying Coca-Cola and Geico as many have been led to believe. Buffett was placing some (short-term AND long-term) complex bets in derivatives markets, options markets, and bond markets." http://pragcap.com/the-many-myths-of-warren-buffett http://pragcap.com/the-many-myths-of-warren-buffett