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Stock Strategist

Betting Beyond Buffett in Brazil

We profile two firms that enjoy currency tail winds.

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Warren Buffett, whose investment moves we follow with a close eye, has placed a seemingly unusual currency bet. Where did the Oracle of Omaha, known for his insistence on safety and value, put his money? Not on the euro, yen, or yuan, but on Brazil's star currency, the real.

Time out. Buffett's bearish stance on the U.S. dollar is well-known, but the real has doubled in value during the last five years--hardly the sort of trend that precedes most Berkshire purchases. Furthermore, Brazil's economic past is littered with crises. "It's quite likely that if you had told me 10 years ago that I would buy the Brazilian real, I would have thought you were crazy," Buffett is quoted as saying.

Ryan McLean does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.