Michael Covel

From the wires:

“Remember all those predictions last winter that the greenback was certain to be crushed in 2005 under massive U.S. trade deficits? Oops! The dollar has levitated about 15% against both the euro and the yen this year, though the fearsome deficits turned out even bigger than expected. On Nov. 16 the dollar reached a 27-month high against the yen and a 24-month high against the euro. Dollar bear Warren Buffett said on Nov. 4 that his firm, Berkshire Hathaway (BRK), had lost about $900 million through September on currency bets.”

I am curious why the major press was not curious about what technqiue Buffett used to take his initial short position in the Dollar? He built his reputation off going “long only” or off “buying and holding”. Shorting the dollar seems quite different than those strategies. Lastly, what prompted the exit of a substantial part of that short position in recent months? I am curious.