Warren Buffett agrees with my decisions...
OK, so he didn't exactly call me on the phone and say "Hey Deej, I completely agree with the changes that you have made in your investment philosophy over the past year and a half." but a lot of what Warren Buffett had to say in an interview today supports the decisions that I have made.
A few weeks ago I posted that I was focusing more on foreign companies and U.S. companies that are heavily involved in exporting because "I disagree with the sentiment that the dollar has reached a bottom and believe that it will continue to weaken over time." I also said "Oil" (I suppose that I vould have elaborated a little more on that one).
Well, here's what Buffett had to say today:
- " The U.S. dollar is likely to fall during the next decade if policies don't change, he said."
- "Buffett has said he was looking for acquisitions outside the U.S., in part to hedge against long-term declines in the dollar."
- "If something is unsustainable, it's going to have consequences; so far the consequences have been a general decline in the dollar against major currencies,'' Buffett said. ``If we continue the same policies, we're going to get the same results in the next five or 10 years."
Furthermore, Buffett believes that " Inflation has been in 'remission' and is likely to be more prevalent in the next 10 years" I realize that this doesn't exactly say "buy oil," but a weak dollar and rising inflation (combined with increasing global demand and a finite supply) will likely ultimately drive the price of oil much higher. Even if the price does drop a little because we experience a slowdown here in the U.S. (I won't mention the "R" word). I hope that oil does drop some because if it does, I'll gobble up all sorts of oil...stock that is. Oil itself isn;t as tasty as one might think. I am very bullish on it over the next decade.