Is There a Risk in Your Equity Put Contracts?

Warren Buffett: There's a risk. And oil prices, there's risk. If these prices prevail, there will be a lot of bad loans and energy loans,. He says if there are bad debts and energy loans, you can imagine what happens to the equity holders. Berkshire wrote 48, maybe 50 contracts between 2004 and 2006. The shortest was 15 years; the longest was 20 years.