Buffet changes bond strategy, warns of inflationNews added by ProWEB Media on August 10, 2010
Gary Linnell

ProWEB Media

Joined: December 27, 2005

Warren Buffet recently shortened the duration of bonds held by Berkshire Hathaway after warning that deficit spending could result in higher inflation.

According to Berkshire's Aug. 6 filling, 21 percent of the company's holdings, including Treasuries, municipal debt, foreign-government securities and corporate bonds were due in one year or less as of June 30. This figure compares with 18 percent at the end of March 31 and 15 percent at the end of the second quarter last year.

Last year, Buffet told Congress to guard against inflation as the U.S. economy began to recover. More recently, he wrote that "The United States is spewing a potentially damaging substance into our economy -- greenback emissions. Unchecked greenback emissions will certainly cause the purchasing power of currency to melt."
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