Berkshire Hathaway Holds Steady with Moody’s

January 14, 2011 by · Leave a Comment
Filed under: The Rating Agencies, The Ratings System 

Each quarter investors anxiously await Berkshire Hathaway’s 13F filing to see how Warren Buffett has adjusted his portfolio during the last three-month period. His transactions are treated by some as harbingers of what is to happen in the upcoming months.

The general reaction to the most recent filing was that Mr. Buffett is adapting a more conservative mindset. Notable among the transactions, however, was that the position that Berkshire Hathaway held in the rating agency Moody’s did not change. In past periods, Berkshire Hathaway and Warren Buffett were aggressive in cutting their investment in Moody’s.

No reason was provide for this change in investment strategy; however, some are speculating that Berkshire Hathaway has renewed confidence in this rating agency and possibly the entire rating agency segment. This is logical, since Dodd-Frank punted on rating agency reform.

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