Berkshire Hathaway is having its annual frenzy. Lets take a look at Moody’s which is a large holding and reputedly on the sell list for Berkshire.
Since the sub-prime mortgage crisis and the reputational hit that ratings companies took Warren Buffett has been a net seller. The problem is he has been slow at it. The problems are being fixed and the reputations of ratings companies are being rehabilitated. What Warren did not like is being fixed so maybe he should have taken the classic value investor approach and buy ugly followed by sell pretty. Seems like he has it backward here. He did not max out his thinking on this position.
George Gutowski writes from a caveat emptor perspective.