It would be a mistake to call Warren Buffett a simple man, but in reality that is what he is. While many make the man mysterious and complex due to his prestige and accumulation of massive wealth, his success has come from a relatively uncomplicated system.
Of course, it is easier to do what he does with such a giant war-chest. It helps to have leverage, and with his cash Buffett is able make things happen quicker and at more favorable terms than the average investor.
For example, Buffett was able to step in during the initial stages of the financial crisis and provide capital to firms like Goldman Sachs. His understanding that the siege on the banking system would eventually resolve itself paved the way for huge returns. And he made an absolute killing on his deal with Goldman.
Yesterday we learned of his new prey. Under the guise of betting on America, Buffett and his Berkshire Hathaway made an offer to buy all outstanding shares of Burlington Northern (BNI) for a significant premium.
Article printed from InvestorPlace Media, http://investorplace.com/2009/11/weak-dollar-stocks/.
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