BUFFET loses $900 million on USD | Page 3 | Forex Factory

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BUFFET loses $900 million on USD

  • #41
  • Nov 9, 2005 1:48am Nov 9, 2005 1:48am
What warren is doing no one knows - its all guesses and more guesses - but i am sure he made 2 billion if he lost one somewhere - i do not know whether he lost or won and no one knows for sure but onething i know is that - big players always hedge their positions.
  • #42
  • Nov 9, 2005 5:09am Nov 9, 2005 5:09am
Quoting SamDan
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 of its forms--greed for life, for money, for love, knowledge--has marked the upward surge of mankind. And Greed--you mark my works--will not only save [this company] but that other malfunctioning corporation called the USA.
Thank you very much.
--Gordon Gekko (Michael Douglas) Wall Street 1987"


man i love that scene. AMC just had that movie running a week or two ago, i ended up watching it 3 more times...
Relax and be happy.
  • #43
  • Nov 9, 2005 5:19am Nov 9, 2005 5:19am
Didn't Buffet short the Dollar in 2001? If so, he's still made plenty of money, now he would appear to be winding down his position and taking the profit.
  • #44
  • Nov 9, 2005 6:05pm Nov 9, 2005 6:05pm
Quoting merlin
where did you get this 900mil figure from?
hey boycie, you never did say where you got the 900mil figure from. can you post the link?
Relax and be happy.
  • #45
  • Nov 9, 2005 6:38pm Nov 9, 2005 6:38pm
Quoting merlin
hey boycie, you never did say where you got the 900mil figure from. can you post the link?
If I'm not mistaken the trade 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 know it was in that region and may have been as high as the breakout but as far as I know he trades purely fundamentals. Nonetheless the breach of an important level will still get the attention of a fundamental trader. If so it may well be that he exited the trade at the recent breach of major support for the EUR/USD. If so he has made an awesome profit though perhaps had a 900 million loss from his equity high. I had not heard of Buffet shorting the USD recently but the 2001 trade is pretty well known.

FT
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  • #46
  • Nov 9, 2005 6:51pm Nov 9, 2005 6:51pm
Ok I only mentioned the EUR/USD trade in my last post but beginning in late 2001 or (or 2000 as the clip below suggests) Buffet bought a basket of six currencies, the most famous of them was the euro position, against the dollar. Regardless the postion appears to have been fully in place since 2002.

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

The company, which gained $2.96 billion on the wager between 2002 and 2004, had been 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 trade put on in 2002 which had made almost 3 billion in profit but had dropped closer to 2 billion profit this year and the position was reduced by 5 billion. Perhaps due to insurance losses and the need to free up capital to cover them.

FT
  • #47
  • Nov 10, 2005 6:25am Nov 10, 2005 6:25am
MERLIN,

I heard that fig on Bloomberg.

Dont shoot the messagener.... bang bang.........................
  • #48
  • Last Post: Nov 10, 2005 3:39pm Nov 10, 2005 3:39pm
2001? i thought buffet and gates put their positions on in early 2004, when the EURUSD was around 1.3000.
Relax and be happy.
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