Berkshire Usually Doesn’t Hedge Its Currency Risk. There Was an Exception.

Berkshire Usually Doesn’t Hedge Its Currency Risk. There Was an Exception.

CEO Warren Buffett was asked whether Berkshire plans to hedge its currency risk, given the dollar’s decline this year and potential moves by the U.S. to further weaken the dollar.

The company, Buffett said, generally doesn’t hedge but did hedge its investment in Japanese trading companies that totaled $24 billion at year’s end. Berkshire was able to borrow cheaply in yen to offset the currency risk.

He said the yen’s rally depressed earnings in the first quarter but the currency may bounce around.