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Buffett isn't joining Gold rush or betting against US Dollar

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  • Buffett isn't joining Gold rush or betting against US Dollar

    Warren Buffett says he's not joining the gold rush that has sent the commodity to record highs above $1500 an ounce.? He thinks the only thing you can do with the metal is "fondle" it.? He also says Berkshire has been out of the foreign exchange markets lately and probably won't be making another big currency bet.




    Warren Buffett Isn't Joining Gold Rush or Betting Against U.S. Dollar
    Published: Saturday, 30 Apr 2011 | 1:10 PM ET Text Size By: Alex Crippen
    Executive Producer

    Warren Buffett is not joining the recent gold rush that has sent the commodity to all-time highs above $1500 an ounce.

    He tells shareholders that he understands why rising prices can create excitement and draw in buyers, but it's not the way to create lasting wealth.

    Buffett says he'd rather bet on strong businesses instead of something "that doesn't do anything."

    He points out that for all the gold in the world, he could buy all of the farmland in the U.S. and 10 Exxon Mobils, with $1 trillion left over.

    As far as he's concerned, the only thing you can do with gold is admire and "fondle" it.

    Charlie Munger agrees: "There's something peculiar to buy an asset that will only really go up if the world goes to hell." He'd rather own Berkshire shares.

    Buffett also says it's unlikely that Berkshire will "make another big currency bet." He still believes the U.S. dollar, and most other foreign currencies, will lose value over time. But he doesn't have a strong enough conviction on the rates of decline to justify putting a lot of money on the line.

    He did reveal that Berkshire had what he called a "small" short position in two currencies last year, generating $100 million in profit.

    Answering a question in the afternoon session, Buffett identifies one of them as the Australian dollar. In the past he has bet against the U.S. dollar.

    Asked about oil, Buffett replies that oil, along with other dollar-denominated commodities, will gain in price over time. But he says he doesn't know how to get an "edge" in commodities and believes there are generally better opportunities to make money with common stocks, or even depressed bonds. They're easier, and "we like easy."
    Originally posted by racrguy
    What's your beef with NPR, because their listeners are typically more informed than others?
    Originally posted by racrguy
    Voting is a constitutional right, overthrowing the government isn't.

  • #2
    buffet knows better than to invest in a train that left the station a long time ago.

    Comment


    • #3
      Glad I don't have all of my eggs in one basket either, but I remember 2008 and I'm not going to sink shit into a market that is designed to make people like him richer. He can manipulate with the other dumasses' money.

      I'll store my shit in real assets. Some that I can fondle and some that produce for me.

      When I can work the rules and manipulate the flow of the market off my suggestions, I'll have the same outlook as him.

      Comment


      • #4
        Originally posted by QIK46 View Post
        buffet knows better than to invest in a train that left the station a long time ago.
        Notice he said it after it made 7 record closes?

        Comment


        • #5
          Originally posted by Denny View Post
          Notice he said it after it made 7 record closes?
          yeah he makes his money then tells you what you need to do. The guy is a genius

          Comment


          • #6
            Originally posted by QIK46 View Post
            yeah he makes his money then tells you what you need to do. The guy is a genius
            He tells you what you need to do for him to make further gains... and many people do.

            Comment


            • #7
              Originally posted by QIK46 View Post
              yeah he makes his money then tells you what you need to do. The guy is a genius
              He has said many times that he wouldn't reveal what he has bought or sold if he wasn't required to by the government.
              Originally posted by racrguy
              What's your beef with NPR, because their listeners are typically more informed than others?
              Originally posted by racrguy
              Voting is a constitutional right, overthrowing the government isn't.

              Comment


              • #8
                Originally posted by Broncojohnny View Post
                He has said many times that he wouldn't reveal what he has bought or sold if he wasn't required to by the government.
                Now THAT is smart.

                Comment

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