Some interesting commentary from today’s proceedings at Berkshire’s annual meeting…
WSJ Deal Journal captures Warren Buffett’s commentary on the weakness in the US dollar:
A few years ago, Berkshire had a significant “short” position on the dollar, amounting to a multi-billion-dollar bet on the currency’s decline. On Saturday, Buffett said the company hasn’t really been active in foreign exchange lately.
“There’s no question the purchasing power of the dollar will decline, but I think the purchasing power of many currencies around the world” will also decline, he said.
A short position, he explained, would reflect an expectation that the U.S. dollar will decline at a faster rate than other countries, and he doesn’t have a strong view on whether that would occur. Hence, “we’re unlikely to make a big currency bet,” Buffett said. He also cited an observation by Berkshire vice-chairman Charlie Munger that the dollar of 1930 is now worth about six cents today.
A pretty nonchalant attitude toward the currency situation compared to everyone else’s emphasis on it. Click over for what Buffett thinks about gold and oil as well.