Why Warren Buffett Thinks Flash Crash Didn’t Raise Any Fundamental Questions About the Markets

Warren Buffett, the legendary Oracle of Omaha

Legendary investor Warren Buffett, the Oracle of Omaha, didn’t seem particularly concerned about the Flash Crash on May 6th. Why this is relevant for high-frequency traders will be debated at High-Frequency Trading Experts Workshop 2010 (http://www.HFTExpertsWorkshop.com), “Practical Implementation of High-Frequency Trading Strategies”, instructional and insightful 2-day workshop organized by Golden Networking in Hong Kong, November 22 & 23 and New York, December 9 & 10.

As reported by fredericksburg.com’s Bill Freehling, billionaire investor Warren Buffett gave his thoughts about the Flash Crash during an interview with CNBC’s Becky Quick early June. Buffett, who was on his way to testify in front of the Financial Crisis Inquiry Commission, “said he wasn’t the slightest bit concerned about the short-term drop.”

Asked by Ms. Quick whether he has any concerns about the market, Mr. Buffett replied, “No, it doesn’t affect, well, the world is still out there, we’re selling what we sell, it could have been a cyber attack, I didn’t know what was going on for 15, 20 minutes, but it didn’t make any difference. I mean, it doesn’t make any difference on Saturdays and Sundays when the markets are closed, right? There’s probably some mechanical aspect that I don’t understand that needs some work, but that’s didn’t raise fundamental questions in my mind about either the economy or the markets.”

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