After reading your question, I would like to send you a letter from Buffett to John Dingle, chairman of the House Subcommittee on Supervision and Investigation, in March, when the US Congress was considering whether to allow the Chicago Mercantile Exchange to trade futures contracts related to the Standard & Poor's 500 Index. Some critics believe that futures trading led to the stock market crash of 5438+0987+ 10/9 in June. Buffett used this letter to express his position. On June 5438+0982, he warned that stock index futures were bad news for the stock market.

The original intention of futures is good, but human nature will unconsciously turn it into a gambling tool, and people will be more and more keen on betting on the short-term fluctuations of the stock market. In the long run, this will cause obvious harm to the capital market.

Buffett thinks that stock index futures are a good tool for professional investors ... but for most ordinary investors, this is not good ... As futures companies, they will also find ways to make ordinary investors fast forward and fast out ... Only in this way can they earn trading commissions, because such fees are the only source of income for futures companies. ....

I hope I can change your view on futures. ....