Tuesday, May 15, 2007

Buffett speculating on the Yen? Or the Swiss Franc?


The Financial Times theorises that Warren Buffett's secret buy is the Yen.

But he lost nearly a billion betting against the dollar two years ago. Foreign exchange speculation is a casino game and Buffett is famous for caution.

What if his currency purchase is linked to his search for a large company to buy? In other words, Buffett could be looking to protect the purchase price from inflating because of a fall in the dollar. In that case, discovering the currency he's chosen might also hint at the company he's stalking; and vice versa.

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