Warren Buffett: Avoid Bonds, Buy Businesses (BRK-A, BRK-B, LZ, UUP, BRN)

The Oracle of Omaha is at it again, telling investors to stay away from long term fixed-dollar investments, writes Bloomberg. Buffett, who has been traveling the world, and is currently in India, said that he sees the purchasing power of the U.S. dollar declining, and that investors should buy businesses instead. The CEO of Berkshire Hathaway BRK BRK has cut the duration of his holdings of U.S. debt since the Federal Reserve started to ease policy in 2009. "I would recommend against buying long-term fixed-dollar investments. If you ask me if the U.S. dollar is going to hold its purchasing power fully at the level of 2011, five years, 10 years or 20 years from now, I would tell you it will not," Buffett told Bloomberg. Buffett recently announced the acquisition of Lubrizol LZ for $135 per share in cash, as he continues to put his massive cash hoard to work. If investors believe that the U.S. dollar will continue to lose its purchasing power, then traders could go long the PowerShares DB US Dollar Index Bearish ETF UDN or short the PowerShares DB US Dollar Index Bullish ETF UUP.