Forex Blog: Currency Trading News & Analysis.

May 13th 2007

Warren Buffet Returns to Forex

Two years ago, Warren Buffet made headlines when he entrenched a $20 Billion dollar bet that the USD would decline in the near term. Unfortunately for Mr. Buffet, who happens to be one of the world’s most respected investors, the Dollar had a great year, and Buffet lost almost $1 Billion. [However, over the course of the bet, which actually began three years prior, his company, Berkshire Hathaway, reputedly pocketed over $2 Billion]. Now, after a long hiatus, Buffet is returning to forex markets, though with much coyness; he has not announced explicitly which currency he is betting on. Analysts have varying opinions, with some speculating that he is shoring up his bet against the USD, while others anticipate a bet against the Yen, which is vastly undervalued, from a fundamental economic standpoint. Regardless, the markets are sure to take notice of someone of Buffet’s stature. The Financial Times reports:

Perhaps the most surprising call for him would be to reverse
his stance on the dollar. Paul Mackel, currency strategist at HSBC, says it is possible that Mr Buffett thinks that US economic growth could accelerate, and has bought the currency.

Read More: What is Buffet Buying?

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Posted by Adam Kritzer | in Investing & Trading, Major Currencies | No Comments »

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