MDCigan

Choosing A Currency ETF: Why We Went With DBV

"Case in point: the bearish bet Warren Buffet made against the dollar ***only to unwind the position with a loss***. "

Huh? Ughhh. Buffett did not unwind the position with a loss. In fact, his bet against the dollar was extremely profitable. It is disappointing when an article can't even get basic facts correct that are easily checked. From the 2006 annual report:

We’ve come close to eliminating our direct foreign-exchange position, from which we realized
about $186 million in pre-tax profits in 2006 (earnings that were included in the Finance and Financial
Products table shown earlier). **************That brought our total gain since inception of this position in 2002 to $2.2
billion.**************... Here’s a breakdown by currency:
Total Gain (Loss) in Millions
Australian dollar $247.1 Mexican peso $106.1
British pound 287.2 New Zealand dollar 102.6
Canadian dollar 398.3 Singapore dollar (2.6)
Chinese yuan (12.7) South Korean won 261.3
Euro 839.2 Swiss franc 9.6
Hong Kong dollar (2.5) Taiwan dollar (45.3)
Japanese yen 1.9 Miscellaneous options 22.9