Excuse me? Which commercial?

Please stop posting these commercials. Its rather tacky.

I don't think he's betting on the USD, must using it as a short-term store of value. I suspect he holds it in instruments that come close to keeping up with inflation.

There are so many businesses creating loads of value, and that value can be measured.

I tend to agree with Buffett. I think we both have a similar risk-averse optimistic Midwest perspective. I completely agree that just b/c he's smart and does some thing doesn't mean it's right. Everyone makes mistakes.

Also, if we go into a severe depression, his "hard assets" may also become soft, or completely melted. What was the business failure rate in the Great Depression? 60%? Also, something else to think of, how did we get out of it? WW2.... not a good future, and the current market is like a cocaine addict finding the cocaine factory door open

Your note is interesting, and true. My point is that our concept of "value" has been manipulated over the last 100 years or so, to be associated with a figment of our imagination. Where currency used to be related to a hard asset (Gold, Silver, bronze or copper), the increase need for "spending" and the corrupt interconnection of politics and wealthy/powerful individuals, bred the creation of the fiat currency. Our dollar is so Fiat it spits pasta. The dollar is only worth what others will believe it is, and when it suits them to not believe it, they won't. When that day comes, Warren Buffets 55 Billion will be so much mattress stuffing. That is my point, for being such a savvy guy, does he really believe that at some point, the whole dollar charade will not come undone? There would either be something going on to assure him of replacement new fiat money, or he is not as smart as everyone makes out. It just seems weird to hold him up as a specific example and yet he is doing something irrational.

As Buffett has explained, he does buy "hard" assets--he buys companies with productive assets. Gold and other precious metals produce nothing, so he shuns them. While $55 billion may be a record, he's had a lot of cash for years; Berkshire Hathaway is a cash generating machine. When the crash comes, and it may be starting (see WARNING: Trees Don't Grow to the Sky, http://www.straightlinelogic.com/straigh...), Buffett will buy some more companies on the cheap, but I don't see him buying gold or precious metals no matter how cheap they are. As in the 2008-2009 crisis, I see him arguing for and taking advantage of a federal government financial rescue and bailouts. He's a committed statitst, not a true capitalist.

Equity values are a leading indicator. They go up before the expansion. "Buy on the rumors, sell on the news."

Yes, it is a little confusing, I am assuming that he has the cash to burn if needed, but if there is a major collapse, then all that "cash" will be just that: burnable, lighting cigarettes with 100.00 bills. I fail to understand why a man of such "brilliance would have 50 some billion in potential garbage. I would think he would have distributed it into hard items like gold, precious metals, or something. Keeping his cash would seem more like saying he does not believe the great dollar collapse is near....t

But Soros upped his normal 3% short up to 16% short.

Well the article 's intent is to get you to buy a book, but the percentage of his assets that he 's holding in cash is telling. The gamble refers to his losses --losses he is choosing. It is a largely defensive move, those losses will offset gains in other areas limiting his tax liability. People are generally offensive in "period(s) of expansion"

The title implies he bought puts or took short positions. The article says he holds cash, which is a bearish stance but not consistent with a gabmle on a collapse of the banking system.