Tags: Berkshire Hathaway | Warren Buffett | Moodys | Stake

Buffett Further Cuts Moody's Stake as Shares Surge This Year

Thursday, 02 May 2013 07:20 AM

 


Berkshire Hathaway Inc., led by billionaire Chairman Warren Buffett, further trimmed its holdings of Moody’s Corp. as the credit-ratings firm’s stock has surged this year.

Berkshire sold about 1.75 million shares this week at prices ranging from $59.93 to $60.94 apiece, according to a filing issued Wednesday. New York-based Moody’s has advanced 21 percent in 2013.

Moody’s plunged in February when its larger competitor, Standard & Poor’s, said it could face a U.S. lawsuit over inflated mortgage-bond ratings. Buffett, 82, has pared his stake from 48 million shares in 2009. Buffett has said Moody’s didn’t anticipate a slide in housing prices.

“What was once a bulletproof franchise may not be bulletproof,” the billionaire said in a 2010 Bloomberg Television interview. “It’s still quite a franchise.”

Buffett’s firm held 26.7 million Moody’s shares after this week’s transactions, the filing shows. Berkshire, based in Omaha, Nebraska, is still the largest shareholder in Moody’s, the second-biggest provider of credit ratings.

Moody’s declined 5 cents Wednesday in New York to $60.80. It advanced 14 percent in April and 11 percent in March after sliding 12 percent in February. Berkshire Class A shares gained 0.4 percent to $159,699.

Buffett didn’t immediately respond to an e-mailed request for comment sent to an assistant.


© Copyright 2015 Bloomberg News. All rights reserved.

1Like our page
2Share
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
© Newsmax Media, Inc.
All Rights Reserved