warren averages down

[SethArb]

how come this works for him and not for me

from bloomberg wires

-Billionaire investor Warren Buffett said he increased his bet against the U.S. dollar on concern that the country's trade deficit will weaken the currency.

``We think that over time that the dollar is likely to decline in value against some of the major currencies,'' said Buffett, 73, in an interview before Berkshire Hathaway Inc.'s annual shareholder meeting in Omaha, Nebraska. In the last few months, Berkshire has added ``more than a little bit'' to its foreign currency holdings, he said-

 

[fan27]

I believe Buffet has been short the dollar from much higher levels.

 

[SethArb]

that he is ahead if he sold USD last yr

but this yr its not a winner

 

[Trend Fader]

Quote from fan27:

I believe Buffet has been short the dollar from much higher levels.

Exactly.. he is on the right side of the trend and its a good long term bet.

As our debt load increases the only way to pay back everything is by devaluing the dollar

If we dont have the money to pay back our debt.. lets just print some more... eventually this game just blows up in our face.


-MIKE

 

[harrytrader]

An investor averages down because he doesn't and can't do market timing but he can do so because he doesn't use leverage. A trader average up because short term probability is higher with this short term trend and as he uses leverage he can't go against short term probability. On average at long term the "intelligent" (discounting the lucky ones) investors win because they have much more capitalisation power than the rest. This is true also for firms: Insurance companies are investors whereas Banks are gamblers and that's why Insurance companies have been able to buy the banks.

Quote from SethArb:

how come this works for him and not for me

from bloomberg wires

-Billionaire investor Warren Buffett said he increased his bet against the U.S. dollar on concern that the country's trade deficit will weaken the currency.

``We think that over time that the dollar is likely to decline in value against some of the major currencies,'' said Buffett, 73, in an interview before Berkshire Hathaway Inc.'s annual shareholder meeting in Omaha, Nebraska. In the last few months, Berkshire has added ``more than a little bit'' to its foreign currency holdings, he said-

 

[just21]

But on the other hand he is saying that inflation is increasing which will lead to higher interest rates and a stronger dollar. His message is not consistent.

 

[Baruch]

Quote from SethArb:

how come this works for him and not for me

from bloomberg wires

-Billionaire investor Warren Buffett said he increased his bet against the U.S. dollar on concern that the country's trade deficit will weaken the currency.

``We think that over time that the dollar is likely to decline in value against some of the major currencies,'' said Buffett, 73, in an interview before Berkshire Hathaway Inc.'s annual shareholder meeting in Omaha, Nebraska. In the last few months, Berkshire has added ``more than a little bit'' to its foreign currency holdings, he said-

He's doing the right thing. Adding to a winner.

 

[jrs3]

Quote from just21:

But on the other hand he is saying that inflation is increasing which will lead to higher interest rates and a stronger dollar. His message is not consistent.

Thats what I was thinking, rates are at historic lows, the Dollar
is close to historic lows. Rates will go up that should attract
capital.

 

[easyguru]

Warren likes to talk up his positions, he might be worried that the dollar trend is changing.

 

[taigong]

Quote from harrytrader:

On average at long term the "intelligent" (discounting the lucky ones) investors win because they have much more capitalisation power than the rest.

Exactly. If I had Warren's wallet, I would also average down. Chances would be good that my solvency would withstand a substantial counter-trend move...