This morning during his big chit-chat on CNBC, during the “rapid fire” portion of the interview, Berkshire Hathaway (BRK) CEO Warren Buffett was asked: What currency would he buy if he had to convert all of his dollars into a foreign currency.
His answer: The Swiss Franch (CHF).
Becky Quick asked him to explain, but he didn’t really answer, noting that all currency bets were somewhat dicey, but that really, you’re betting on the stability of the people in government.
So Buffett likes the stability he sees in the Swiss government.
But what’s really interesting is that the first rapid-fire question he was asked had to do with currency. Think about that for a second. Hearing Warren Buffett talk about stocks (like Coke or Moody’s or whatever else) is kind of a snooze at this point. But currency! Now that’s some exciting stuff. Suddenly, conservative Warren Buffett is talking about something that will really get the stay-at-home speculator jazzed.
This dovetails nicely with Bill Gross’ comments about the “unibond” market — a market whereby the government has taken over industry, and thus government instruments (bonds, currencies, etc.) will trade like the private sector assets they’ve guaranteed.
Anyway, we see it here too. Readers are rarely as interested in individual stocks as they are in currency moves.
Seriously, just watch the beginning of this clip where he talks currency. It’s hot.