You have a really strange choice in evidence for your citations. You really jump around in terms of years. Here is what Buffett said in 2004: ''We think, over

You have a really strange choice in evidence for your citations. You really jump around in terms of years. Here is what Buffett said in 2004: ''We think, over time, that the dollar is likely to decline in value against some of the major currencies,'' Mr. Buffett said at Berkshire's annual shareholder meeting earlier this month. ''This is not a short term prediction.'' So while you may cite a paper loss after 2 years, that hardly qualifies as a long term loss. Indeed, if you bother to look at the following chart: http://www.google.com/finance?q=USDEUR http://www.google.com/finance?q=USDEUR (set it to max) You will see that shorting the dollar over that period would have been the appropriate strategy. Now, you then go on to cite the fact that Buffett purchased equities and bought Burlington Northern. For the first, Buffett purchased equities at near lows, the gains he was able to lock in from such investments would withstand the frictional forces of inflation. Secondly, most parties look at the Burlington Northern acquisition as a means of gaining a steady stream of free cash flow that will be inflation resistant over the next 50 years. So while it is an American asset, it is an asset that has the ability to raise prices and withstand inflation, that is what is important to note. And if you look more broadly, these are just the types of businesses that Buffett goes after. Businesses with high barriers to entry and the ability to raise prices. That is also why he purchased MidAmerican Energy after utilities underwent regulatory changes.