Monday 2 November 2015

Derivatives, disliked by billionaire Warren Buffett, is gaining momentum in M'sia

Legendary billionaire investor Warren Buffett is no fan of it – and he makes no secret of his displeasure towards the complicated world of derivatives by calling them the weapons of mass destruction.

But risky as they may be, and regardless of how one perceives these instruments, it is undeniable that derivatives have enabled many investors to hedge their positions and protect their portfolios in an increasingly volatile and uncertain market environment.

And for Bursa Malaysia Bhd, derivatives have been the saving grace for its income growth amid the decline in trading activity in the domestic equity market.

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