Warren Buffett’s ice-cream-to-insurance conglomerate Berkshire Hathaway reported a smaller profit for the second quarter on Friday as losses on derivatives dragged down results, though operating income set the new records Buffett predicted.

Buffett eschews derivatives for the most part, but he does have one outstanding – and large – derivative bet tied to stock market performance.

While he has said repeatedly he expects that position to be profitable over time, it generated nearly $700 million in losses in the last quarter.

Source: Berkshire Hathaway Earnings 2Q 2012: Warren Buffett’s Company Lost $700 … – Huffington Post