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Two other possible reasons:- 1. Buffett might be expecting US inflation to devalue the dollar. 2. He raised debt in Japan at 0% interest and is getting an appro
by victor106 6y ago
Two other possible reasons:-
1. Buffett might be expecting US inflation to devalue the dollar.
2. He raised debt in Japan at 0% interest and is getting an approx 3% return by investing in these relatively stable companies.
- mimikatz 6y agoIt is pretty clearly #2 and I don't know why people are acting confused. He got a huge loan at roughly 0% and the main risk to mitigate is a currency risk. Investing in stable Japanese companies heavily reduces that risk and growth/dividends is basically free money.
- Bombthecat 6y agoOr both, which I suspected.
- sushshshsh 6y agoGiven his record with airline companies there's a chance he's wrong, hey hey!
- adventured 6y agoThey made a recent smaller bet on Barrick Gold ($588m holding), which is blatantly a bet on the price of gold remaining elevated / going higher over time due to profligate US spending and the consequences for the USD. Based on the size of the bet, this one (trading houses) is Buffett led and the Barrick investment is one of Berkshire's other two prominent investors (Ted Weschler, Todd Combs).
- krustyburger 6y agoGiven the sheer size of Berkshire’s holdings, that sounds less like a bet and more like a hedge.