.comment-link {margin-left:.6em;}

Thursday, February 04, 2010

Berkshire loses AAA rating from S&P

I don't view this as bad news. I view it as an opinion about opportunities for investing excess cash.
“The [Burlington Northern] railroad acquisition will reduce what historically has been extremely strong capital adequacy and liquidity,” S.&P. said. “Risk tolerances appear to have increased.”
So Buffett is willing to take on more risk now.

The universe of investments available to Berkshire are very limited and I'm surprised that they weren't hell-bent on losing their AAA rating a year ago. Maybe things really did look that scary back then.

Comments:
This comment has been removed by a blog administrator.
 
Nice, accurate and to the point. Not everyone can provide information with proper flow. Good post. I am going to save the URL and will definitely visit again. Keep it up.
Dissertation Writing | Buy Dissertation
 
Post a Comment



<< Home

This page is powered by Blogger. Isn't yours?