Tuesday, May 31, 2005
I wouldn't be so optimistic as to say the French bought dollars. However they clearly sold euro. Their problem, I think, is that they long for the Franc, rather than either Euro or dollars. And that is no longer a fungible commodity. Classic French longing for something they can't have, is obsolete and which reflects parochial thinking.
As for Mr. Buffett, we need not shed a tear for him. He is a great investor, and portfolio allocator. And he rightly concluded he needed to diversify Berkshire out of dollar assets. As he will do it slowly over an extended period of time, he will likely own the euro at parity over time. It will cost him near term, however.