Wednesday, May 10, 2006

Warren Buffett on Commodities Bubble

"Energy, oil, and metals have all seen terrific moves. Copper may have had the biggest. The start of most trends is driven by the fundamentals of supply and demand, but then speculation takes over. People have been watching the fundamentals of commodities for years. There’s an old saying, “What wise men do in the beginning, fools do in the end.” Any move that starts with fundamentals will sooner or later draw speculators, and eventually the speculators will dominate. Probably the best known example is the tulip craze of the 1600s." said Warren Buffett.

Berkshire Hathaway Annual General Meeting May 6, 20006

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