BUFFET loses $900 million on USD
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Thread: BUFFET loses $900 million on USD

  1. #1
    Had a few losing trades ? Dont be too hard on yourself, even the big guys get it wrong.

    Dont stress Warren, you understand how to make it back.

  2. #2
    Quote Originally Posted by ;
    The point is, ladies and gentlemen, is that greed--for lack of a better word--is good. Greed is right. Greed works. Greed clarifies, cuts through and captures the essence of the evolutionary spirit. Greed, in all its forms -- greed for life, for money, for love, knowledge--has marked the upward surge of mankind. And Greed--my works are marked by you --will not just save [this company] but that other malfunctioning corporation called the USA.
    Thank you very much.
    --Gordon Gekko (Michael Douglas) Wall Street 1987
    man I Really like That scene. AMC only had that movie running a couple weeks ago, I ended up watching it 3 more times...

  3. #3
    Didn't Buffet Brief the Dollar in 2001? If that's the case, he made plenty of money he would seem to be winding down his standing and taking the profit.

  4. #4
    Quote Originally Posted by ;
    where did you get this 900mil figure from?
    Hey boycie, you never did say where you have the 900mil figure from. can you post the link?

  5. #5
    1 Attachment(s)
    Quote Originally Posted by ;
    hello boycie, you never did say where you have the 900mil figure from. can you post the link?
    If I'm not mistaken the transaction Buffet entered was long EUR/USD in 2001 entering somewhere in the high 80's low 90's. I'm just doing this from memory so I don't recall the entry price but I understand it had been in that region and might have been as high as the breakout but as much as I know he deals fundamentals. Nonetheless the breach of an important level will receive the eye of a fundamental trader. If so it might well be that he exited the trade in the recent breach of major aid. If he has made an profit though possibly had a 900 million reduction from his equity . The 2001 trade is well-known although I'd not heard of Buffet shorting the USD recently.

    FT

  6. #6
    Okay I just said the EUR/USD commerce in my last article but beginning in late 2001 or (or 2000 as the clip under suggests) Buffet purchased a basket of six currencies, the most well-known of them was the euro place, contrary to the dollar. The postion appears to have been completely in place since 2002.

    Quote Originally Posted by ;
    Buffett, who said he anticipated the US trade deficit to weaken the dollar, reduced the company's contracts by $5 billion to $16.5 billion during the third quarter following $926 million in currency losses earlier this year. The contracts are agreements to purchase a foreign currency in the future in a predetermined price.

    The company, which gained $2.96 billion about the bet between 2002 and 2004, was losing money as the dollar gained 10 percent against a basket of six major currencies in the first half of the year.
    So basically it was the commerce put in 2002 which had made almost 3 billion profit but'd fallen closer to 2 billion profit this year and the position was reduced by 5 billion. Perhaps due to insurance losses and the necessity to free up capital to cover them.

    FT

  7. #7
    MERLIN,

    I heard that fig on Bloomberg.

    Dont take the messagener.... Bang bang...

  8. #8
    2001? I believed buffet and gates set their rankings on in early 2004, once the EURUSD was around 1.3000.

  9. #9
    What warren is performing nobody understands - its guesses and much more guesses - but I am sure he left 2 billion if he lost one somewhere - I do not know whether he lost or won and nobody knows for certain but onething I know is that - large players constantly hedge their positions.

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