Buffet: "I don't see how the dollar avoids going down"

 

Published January 22, 2005

Forbes reports on Warren Buffet's currency perspective:

Heed the Sage of Omaha. Warren Buffett, whose investment acumen seems unerring, had a caveat for America: Barring "a major change" in policies, the trade deficit will further undermine the U.S. dollar.

The billionaire spoke in a Wednesday interview with CNBC, the cable TV news channel owned by General Electric (nyse: GE - news - people).

Without shifting current trade policy, "I don't see how the dollar avoids going down," he mused, warning of inflation risks posed by an anemic Yankee currency.

The prairie-born genius also confessed he's having a "hard time" identifying stocks to buy, and isn't purchasing commodities. His cash swelled to $43 billion in the third quarter, by one account, because he couldn't find many investment opportunities.

Buffett, 74, is chairman of Berkshire Hathaway (nyse: BRKa - news - people), the immensely successful investment vehicle that acquired a new--and immensely successful--board member in December: Microsoft (nasdaq: MSFT - news - people) Chairman Bill Gates. The latter also enjoys a personal friendship with Buffett, and takes part in his bridge games. (see: "Gates: Buffett's Pal Bill Elected To Berkshire's Board")

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