Warren Buffett on Currencies
May 9th, 2008 by Martin Lee
Warren Buffett said that the Canadian dollar is likely to outperfom the U.S. dollar in coming years. He himself had bought a couple of billion dollars worth of Canadian currency some time ago. However, he regreted that he didn’t buy more and kept them longer. He also continues to hold the Brazilian real.
It appears the federal government is likely to follow policies that will make the dollar even weaker. Warren Buffett continues his bearish stance on the U.S. dollar but does not feel the need to hedge on other currencies.
As a result of the weakening U.S dollar, Warren Buffett said he was happy to invest in overseas companies as currencies in those countries are not likely to decrease relative to the U.S. dollar.
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