The stubbornly resilient dollar has cost Warren Buffett a lot of money this year and has disappointed many other investors who thought that a weaker dollar would be their friend.I was quite surprised to hear he had bet so heavily against the dollar. As a hedge I would understand it, but as speculation it surprised me. The dollar could certainly go lower from here relative to the Euro, but I don't think it's a great bet with the weak economic conditions in Europe and tighter monetary policy in the United States. But we'll see.
Buffett's bet against the dollar resulted in a $307 million loss for his company, Berkshire Hathaway, in the first quarter.
Tuesday, May 17, 2005
Everybody Makes Mistakes
Even Warren Buffett: